Difference between revisions of "Choosing the Proper Forum for Small Claims (20:IV)"

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'''Small  Claims  Court  can  award  a  judgment  of  up  to  $25,000.''' A  person  whose  claim exceeds $25,000 may still choose Small Claims Court  but must expressly state in the notice of claim or counterclaim that they will abandon the amount necessary to bring their claim or counterclaim  within  the  court’s  jurisdiction19. Interest  and  costs  are  not  included  in calculating the $25,000 limit.  
'''Small  Claims  Court  can  award  a  judgment  of  up  to  $25,000.''' A  person  whose  claim exceeds $25,000 may still choose Small Claims Court  but must expressly state in the notice of claim or counterclaim that they will abandon the amount necessary to bring their claim or counterclaim  within  the  court’s  jurisdiction19. Interest  and  costs  are  not  included  in calculating the $25,000 limit.  


A  claimant  must  sue  all  responsible  parties  for  damages arising  from  a  single  event  in '''one''' claim; the claimant cannot split claims for damages arising out of a single event into multiple claims in an attempt to circumvent the $25,000 limit.  If, however, there are multiple events giving rise to a claim, even if closely related, they may be brought in separate actions20.  For xample, if a contractor issues an invoice for $15,000 at the end of January for work done in January  and  issues  another  invoice  for  $15,000  at  the  end of  February  for  work  done  in February and both invoices go unpaid, the contractor may sue on each invoice in a separate claim.  Rule 7.1(4) permits certain related claims to be heard together. Where a defendant has pleaded a set-off (the plaintiff owes the defendant money that should be  deducted  from  their  award),  contributory  negligence  (the  plaintiff’ s negligence  also contributed to their loss), or shared liability (there is another party who is also liable  fo the same action), the court may consider these defences against the full amount of the claimant’ s claim provided that the net judgment does not exceed $25,000.  This also applies when a set-off  forms  the  basis  for  a  standalone  counterclaim.  For  example,  if  the  claimant  proves  a $50,000  claim  and  the  defendant  establishes  a  $25,000  set-off,  the  claimant  will  have  a  net judgment of $25,000. The SCA21 permits the monetary limit to be set by regulation at any amount up to $50,000.  Claimants should confirm the current monetary limit prior to filing a claim. 2.Jurisdiction The Small Claims Court derives its authority from the  SCA, the Small Claims Rules, BC Reg 261/93 [SCR], and other acts that expressly confer jurisdiction upon the Provincial Court. The court has express jurisdiction in claims for: debt or damages; recovery of personal property; specific performance of an agreement relating to personal property or services; orrelief from opposing claims to personal property. The  court  does  not  have  jurisdiction  in  claims  for  libel,  slander,  or  malicious  prosecution unless such authority is expressly granted in limited circumstances by another statute (e.g., s-s  171(3)  of  the Business  Practices  and  Consumer  Protection  Act  allows  for  contraventions  of  this act to be heard in Provincial Court even if they involve claims for libel or slander22).The court cannot resolve disputes involving residential tenancy agreements nor can it grant remedies  created  by  statute  if  there  is  another  dispute  resolution  mechanism  prescribed  in the  statute.    For  example,  claims  for  overtime  must  be  claimed  through  the  Employment Standards Branch and not in Small Claims Court.  The court has very limited jurisdiction in residential tenancy23, employment24, human rights25, and strata property26 matters. Other  noteworthy  areas  of  law  often  falling  outside  the jurisdiction  of  the  Small  Claims Division are divorce, trusts, wills (i.e., probate), prerogative writs, and bankruptcy. However, the  court  may  have  jurisdiction  over  cases  where  these areas  of  law  are  involved  only circumstantially –  where  the  pith  and  substance  of  the  case  does  fall  within  the  court’ s jurisdiction27.    In AMEX  Bank  of  Canada  v  Golovatcheva,  the  claimant  alleged  that  the
A  claimant  must  sue  all  responsible  parties  for  damages arising  from  a  single  event  in '''one''' claim; the claimant cannot split claims for damages arising out of a single event into multiple claims in an attempt to circumvent the $25,000 limit.  If, however, there are multiple events giving rise to a claim, even if closely related, they may be brought in separate actions20.  For example, if a contractor issues an invoice for $15,000 at the end of January for work done in January  and  issues  another  invoice  for  $15,000  at  the  end of  February  for  work  done  in February and both invoices go unpaid, the contractor may sue on each invoice in a separate claim.  Rule 7.1(4) permits certain related claims to be heard together.  
 
Where a defendant has pleaded a set-off (the plaintiff owes the defendant money that should be  deducted  from  their  award),  contributory  negligence  (the  plaintiff’s negligence  also contributed to their loss), or shared liability (there is another party who is also liable  fo the same action), the court may consider these defences against the full amount of the claimant’s claim provided that the net judgment does not exceed $25,000.  This also applies when a set-off  forms  the  basis  for  a  standalone  counterclaim.  For  example,  if  the  claimant  proves  a $50,000  claim  and  the  defendant  establishes  a  $25,000  set-off,  the  claimant  will  have  a  net judgment of $25,000. The SCA21 permits the monetary limit to be set by regulation at any amount up to $50,000.  Claimants should confirm the current monetary limit prior to filing a claim.  
 
=== 2. Jurisdiction ===
 
The Small Claims Court derives its authority from the  SCA, the ''Small Claims Rules'', BC Reg 261/93 [SCR], and other acts that expressly confer jurisdiction upon the Provincial Court.  
 
The court has express jurisdiction in claims for:  
*debt or damages;  
*recovery of personal property;  
*specific performance of an agreement relating to personal property or services; or
*relief from opposing claims to personal property.  
 
The  court  does  not  have  jurisdiction  in  claims  for  libel,  slander,  or  malicious  prosecution unless such authority is expressly granted in limited circumstances by another statute (e.g., s-s  171(3)  of  the ''Business  Practices  and  Consumer  Protection  Act'' allows  for  contraventions  of  this act to be heard in Provincial Court even if they involve claims for libel or slander22).
 
The court cannot resolve disputes involving residential tenancy agreements nor can it grant remedies  created  by  statute  if  there  is  another  dispute  resolution  mechanism  prescribed  in the  statute.    For  example,  claims  for  overtime  must  be  claimed  through  the  Employment Standards Branch and not in Small Claims Court.  The court has very limited jurisdiction in residential tenancy23, employment24, human rights25, and strata property26 matters.  
 
Other  noteworthy  areas  of  law  often  falling  outside  the jurisdiction  of  the  Small  Claims Division are divorce, trusts, wills (i.e., probate), prerogative writs, and bankruptcy. However, the  court  may  have  jurisdiction  over  cases  where  these areas  of  law  are  involved  only circumstantially –  where  the  pith  and  substance  of  the  case  does  fall  within  the  court’s jurisdiction27.    In ''AMEX  Bank  of  Canada  v  Golovatcheva'',  the  claimant  alleged  that  the defendant  had  committed  fraud  by  running  up  a  debt  that  she  knew  she  would  escape  by declaring bankruptcy.  The Small Claims court exerted jurisdiction over the issue of fraud.
 
The  Small  Claims  Court  has  limited  inherent  jurisdiction.    It  cannot  grant  injunctions  nor can it grant declaratory relief; however, subject to the SCA and SCR, the court may make any order  or  give  any  direction  necessary  to  achieve  the  purpose  of  the  SCA  and  SCR.  One should  review  the  SCA  and  the  SCR  thoroughly.  [See ''LLC  v  PG'',  sub  nom. ''Craig  v  Gidyk'', [1994] BCJ No. 1591 (Prov. Ct.); ''RK v McBride'', [1994] BCJ No. 2791; and ''Joey Beenz Coffee Bar Ltd. v Di Stasio (cob Neon Sign Writers)'', 2011 BCPC 375 (CanLII).
 
=== 3. Costs ===
 
The  cost  to  file  a  claim  depends  on  the  amount  being  claimed.    The  filing  fee  is  $100  for claims  of  $3,000  or  less  and  $156 for  claims  over  $3,000.    All  Small  Claims  Court  fees  are listed in Schedule A of the SCR. If a person is unable to afford the court’ s fees, they can file an Application to the Registrar (Form  16)  together  with  a  Statement  of  Finances.    If  accepted,  the  party  will  be  exempted under Rule 20(1) from paying fees with respect to that court file. An  unsuccessful  litigant  must,  unless  a  judge  or  registrar  orders  otherwise,  pay  to  the successful party: any fees the successful party paid for filing any documents; reasonable amounts the party paid for serving any documents; and any other reasonable charges or expenses that the judge or registrar considers directly relate to the conduct of the proceeding28. Under no circumstances can any party recover any fees paid to a lawyer with respect to the proceeding:  s.  19(4)  of  the  SCA;  however,  reasonable  disbursements  charged  by  a  lawyer with respect to the proceeding may be awarded to the successful party. B.Supreme Court of British Columbia The Supreme Court has a broad jurisdiction.  It is not bound by any monetary limits and there are few restrictions on the types of claims that it can hear.  The Supreme Court can grant injunctions, conduct judicial reviews, and make new law. The Supreme Court is not designed for lay litigants. Parties without legal training or legal advice may find  it  much  more  difficult  to  navigate  than  Small  Claims  Court.    There  are,  however,  a  number  of resources29 to help lay litigants bring and defend claims in Supreme Court. The court fees in Supreme Court are higher than in Small Claims Court; they can be waived, however, for those who cannot afford them. In  Supreme Court,  the  losing  party  will  often  be  ordered  to  pay  to  the  successful  party  a  portion  of that  party’ s  reasonable  legal  costs.    Costs  are  awarded using  a  tariff system  and  generally  on  a  party and party basis that usually amounts to about twenty per cent of the successful party’ s costs.  While it is  possible  for  the  successful  party  to  be  fully  indemnified  through  an  award  of  special  costs,  also known as solicitor-client costs, this is rare and should not be expected. C.Civil Resolution Tribunal The Civil Resolution Tribunal is designed to be an alternative to Small Claims Court.  It is anticipated that the tribunal will begin operations some time in 2015.In June 2014, regulations were enacted that

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