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

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 $35,000 limit. If, however, there are multiple events giving rise to a claim, even if closely related, they may be brought in separate actions ([http://canlii.ca/t/5l70 ''Wah Loong Ltd v Fortune Garden Restaurant Ltd.'', 2000 BCPC 163]). For example, if a contractor issues an invoice for $20,000 at the end of January for work done in January and issues another invoice for $20,000 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.

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 tenancy (''Residential Tenancy Act'', SBC 2002, c 78.), human rights (''Human Rights Code'', RSBC 1996, c 210), and strata property matters. See ''Strata Property Act'', SBC 1998, c 43; ''Frechette v Crosby Property et al'', 2007 BCPC 174; ''Stettner v Strata Plan PG 56'', 2011 BCPC 82; ''Valana v Law et al.'', 2005 BCPC 587; ''Heliker et al v Strata Plan VR 1395'', 2005 BCPC 500; ''David v Vancouver Condominium Services Ltd.'', [1999] BCJ No 1869; ''McNeill v Strata Plan – KAS1099'', [1996] BCJ No. 2553; ''Strata Plan LMS2064 v Biamonte'', [1999] BCJ No. 1267; ''Seller v Singla Bros. Holdings Ltd.'', [1995] BCJ No. 2826; ''Beck v Andrews Realty Ltd. (cob RE/Max Real Estate Services)'', [1994] BCJ No 2796. Regarding employment law, the Small Claims Court has jurisdiction over contractual and common law rights. See ''Employment Standards Act'', RSBC 1996, c 113; [http://canlii.ca/t/1wrdg ''Macaraeg v E. Care Contact Centers Ltd.'', [2008<nowiki>]</nowiki> BCCA 182]; [http://canlii.ca/t/23zp8 ''UBC v Moore'', 2009 BCPC 186]. As such, a significant number of wrongful dismissals claims take place in this court.

Other noteworthy areas of law often falling outside the jurisdiction of the Small Claims Division are trusts, wills (i.e., probate), prerogative writs, bankruptcy, and some family law matters. 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 do fall within the court’s jurisdiction ([http://canlii.ca/t/1tt0t ''AMEX Bank of Canada v Golovatcheva'', 2007 BCPC 369], at para 12). In ''[http://canlii.ca/t/1tt0t 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 this case as in pith and substance, the case at bar was a claim in debt, not bankruptcy.

The Small Claims Court has no inherent jurisdiction. It cannot grant injunctions or declaratory relief; however, subject to the Small Claims Act and Small Claims Rules, the court may make any order or give any direction necessary to achieve the purpose of these statutes. One should review the ''Small Claims Act'' and ''Small Claims Rules'' thoroughly. See ''LLC v PG'', sub nom. ''Craig v Gidyk'', [1994] BCJ No. 1591 (Prov. Ct.); ''RK v McBride'', [1994] BCJ No. 2791; and [http://canlii.ca/t/fpmf7 ''Joey Beenz Coffee Bar Ltd. v Di Stasio (cob Neon Sign Writers)'', 2011 BCPC 375].  

The role of the Civil Resolution Tribunal is to encourage the resolution of disputes by agreement between the parties, and if resolution by agreement is not reached, then to resolve the dispute by deciding the claims brought to the tribunal by the parties. The ''Civil Resolution Tribunal Act'' sets out the general process and jurisdiction. For up-to-date information on the Civil Resolution Tribunal, associated legislative changes, and the official rules please visit their website at https://www.civilresolutionbc.ca/.

The CRT has jurisdiction over small claims disputes up to $5,000, strata property matters, certain disputes about motor vehicle accidents and injuries, and disputes involving societies and co-operative associations. The tribunal will not determine if they have jurisdiction over disputes until an application for dispute resolution is submitted and the required fee paid. While jurisdictional issues are screened at the intake stage, a tribunal member retains discretion to determine whether the dispute is within the tribunal’s jurisdiction. Applicants who want to know if their claim is within the tribunal’s jurisdiction before filing a dispute may try using the CRT’s Solution Explorer or may need to seek legal advice.  

The tribunal’s small claims jurisdiction is similar to that of the Small Claims Court, however, while the Small Claims Court can resolve claims between $5,001 and $35,000, the CRT is limited in jurisdiction to resolving small claims disputes of $5,000 or under. If a claim is over $5,000 in total value, it may be reduced to $5,000 or less in order to make an application for dispute resolution at the CRT but this requires abandoning the amount that is over $5,000. This means that part of the claim is gone and can no longer be claimed at the CRT or anywhere else.

However, it does not have jurisdiction over claims that

*  the use or enjoyment of a strata lot (Note: Recent CRT cases have concluded that the CRT does not have jurisdiction under its Strata Property jurisdiction to resolve neighbour disputes, such as an owner claiming against another owner in nuisance or negligence for noise or water leak. If you have a dispute with another resident in a strata you may wish to seek legal advice);

The foregoing list contains a number of limitations. A person considering tribunal resolution of a claim listed above should review s 122 of the ''Civil Resolution Tribunal Act'' to ensure that a limitation does not deny jurisdiction to the tribunal.

The Motor Vehicle Injury jurisdiction is currently complex and evolving. For accidents between April 1, 2019, and April 30, 2021, the CRTA gives the CRT jurisdiction over disputes about accident benefits, minor injury determinations, and liability and damages claims up to $50,000. The constitutionality of the CRT’s jurisdiction over minor injury determinations and fault and damage claims up to $50,000 are being litigated ([https://www.bccourts.ca/jdb-txt/sc/21/03/2021BCSC0348.htm ''Trial Lawyers’ Association of British Columbia v British Columbia (Attorney General)'', 2021 BCSC 348, at para 414]). This is the BCSC case declaring the provisions unconstitutional. There is nothing really to point to regarding the appeal). In the meantime, people can proceed to either the CRT or the court. The court challenge does not affect the CRT’s jurisdiction over entitlement to accident benefits. Seek legal advice to determine which process is best for you. For more information, visit [https://%20https://civilresolutionbc.ca/resources/where-can-i-file-a-claim-for-a-vehicle-accident-injury/ https:// https://civilresolutionbc.ca/resources/where-can-i-file-a-claim-for-a-vehicle-accident-injury/].  

For accidents May 1, 2021, and after, the CRT has jurisdiction over entitlement to benefits under the new Enhanced Care model; see [https://civilresolutionbc.ca/british-columbias-motor-vehicle-accident-enhanced-care-insurance/ https://civilresolutionbc.ca/british-columbias-motor-vehicle-accident-enhanced-care-insurance]/.

The foregoing list contains a number of limitations. A person considering tribunal resolution of a claim listed above should review s 130 of the ''Civil Resolution Tribunal Act'' to ensure that a limitation does not deny jurisdiction to the tribunal (''Civil Resolution Tribunal Act'', SBC 2012, c 25).

The ''Cooperative Associations Act'' governs cooperative associations in BC, and the CRT may only take disputes about its provincial housing or community service cooperatives (''Cooperative Association Act'', SBC 1999, c 28, s 159.5). The Act enables persons to make a request for the tribunal resolution of a claim that concerns:

As per Societies, the foregoing list contains a number of limitations; see s 126 of the ''Civil Resolution Tribunal Act''. For example, claims cannot be made with respect to any matter relating to terminating membership, expelling members, winding up the cooperative association, or appealing decisions made by the Registrar of Companies.

Using the tribunal to resolve a dispute within its jurisdiction is mandatory by default. However, a party may apply for an exemption under the ''Civil Resolution Tribunal Act''. Furthermore, if the tribunal refuses to resolve a dispute, the courts can hear that dispute. The tribunal is designed to be more informal, faster, and less expensive than Small Claims Court, and will be conducted primarily using the internet and email. Unlike Small Claims Court, the tribunal generally requires the parties to be self-represented; lawyers are generally not permitted (''CRTA'', s 20). There are exceptions to this, including where a party is a minor or has impaired capacity, where the rules permit the party to be represented or where the tribunal permits representation because it is in the interests of justice and fairness. If a party wishes to request a representative, they should contact the CRT directly to obtain a Representation Request Form.  

The CRT orders are enforceable as an order of the court unless a party makes a notice of objection under s 56.1 of the ''Civil Resolution Tribunal Act''.

If a settlement is reached, a letter should be sent to the other party to confirm the agreement. Enclose a duplicate copy for the appropriate party to sign and return to you. Any settlement should include a mutual release agreement in which both parties agree to not bring any further claims against each other and to withdraw any other proceedings that may have been commenced.  

The Civil Resolution Tribunal’s facilitation process is essentially a mediation. In fulfilling its mandate, the role of the Civil Resolution Tribunal is “to encourage the resolution of disputes by agreement between the parties” (''CRTA'', s 2(3)) before resolving the dispute by deciding the claims brought to the tribunal. The tribunal’s mandate is to provide dispute resolution services in a manner that is accessible, speedy, economical, informal, and flexible (''CRTA'', s 2(2)).  

The Small Claims Court requires that parties participate in either a settlement conference or mediation. Both processes are highly successful in resolving disputes and there is no additional cost to either party. For information on these processes, see the  [http://www.ag.gov.bc.ca/courts/small_claims/info/guides.htm Small Claims Procedural Guides].