Before you sue: what to check first

What this stage is

Before you start a claimClaimA request to the court for money or another remedy, saying why someone else owes it to you. The word also means the court document that starts a case.Close definition of Claim, take time to check a few things. Nothing goes to the court yet. This stage is about making sure your case fits Small Claims Court, that you are still in time, and that you have tried to fix the problem first.

A little work now can stop your claim from being delayed or thrown out later. It can also help you settle without going to court at all.

What you need to do

1. Check that your claim fits the money limit

Ontario Small Claims Court hears claims of $50,000 or less. That amount does not count interestPrejudgment interestInterest on money owed from the date it was owed up to the date of judgment. The rate may come from a contract or be set under Ontario law [VERIFY: how the rate is set].Close definition of Prejudgment interest or costsCostsMoney the court may order one side to pay the other for expenses of the case, such as court fees. Costs are separate from the amount claimed, and there are limits on them [VERIFY].Close definition of Costs. This monetary limitMonetary limitThe most money you can ask for in a court. In Ontario Small Claims Court it is $50,000, not counting interest and costs, since October 1, 2025.Close definition of Monetary limit has applied since October 1, 2025.

Add up what you are owed. Write down each item and its amount. For example: the unpaid invoice, the cost to repair the damage, and the deposit you never got back. Keep a receipt or record for each one. This list will become the damagesDamagesMoney a court orders one side to pay to make up for a loss. In your claim, it is the total you are asking for, broken down item by item.Close definition of Damages part of your claim.

If your total is over $50,000, you may be able to give up the extra amount so you can stay in Small Claims Court. You may not be able to get that extra amount back later [VERIFY: effect of giving up the excess]. Our Can I use Small Claims Court? checker can help you think it through.

2. Check your time limit

Most claims have a limitation periodLimitation periodThe time limit to start a court case. In Ontario it is generally 2 years from when you discovered your claim, under the Limitations Act, 2002. If you miss it, you may lose the right to sue.Close definition of Limitation period. Under the Limitations Act, 2002, the general rule is that you have 2 years from the day you discovered (a claim)Discovered (a claim)The day you knew, or should have known, that you had a loss caused by someone else and that a court case was a fitting way to fix it [VERIFY: exact legal test]. Your 2-year limitation period generally starts on this day.Close definition of Discovered (a claim) your claim to start it.

• If more than 18 months have passed, treat your case as urgent.
• If more than 2 years have passed, this may be too late. Get legal advice now.

Read our guide to limitation periods, or try the limitation period estimator.

3. Find the right name for each person or business

You need the correct legal nameLegal nameThe official name of a person or business. For a person, it is the name on government ID. For a business, it may be different from the name on its sign or website.Close definition of Legal name of each person or business you sue. A store sign or a nickname is often not enough. Our guide on who to sue and where to file explains how to check.

4. Choose the court location

Rule 6 of the Rules of the Small Claims Court says where you can start your case. Picking the wrong place can cause delays. The same guide on who to sue and where to file explains your choices.

5. Gather your evidence

Collect everything that shows what happened. Your evidenceEvidenceAnything used to prove a fact in court, such as documents, photos, messages and what witnesses say. The judge decides the case based on the evidence.Close definition of Evidence might include:

• contracts, quotes and invoices
• receipts, cheques and bank statements
• emails and text messages
• photos and videos
• names and phone numbers of people who saw what happened

Write a short timeline of events in date order. Do it now, while your memory is fresh. Make copies, and keep the originals somewhere safe.

6. Send a demand letter

A demand letterDemand letterA letter that tells someone what they owe you, why, and by when you want it paid, before you go to court. It often settles the dispute and shows you tried.Close definition of Demand letter tells the other side what they owe, why, and by when you want it paid. It gives them one last chance to fix things. It also shows the court that you tried to settle first. Our post on how to write a demand letter walks you through it.

The deadlines at this stage

There is no court deadline yet, because you have not started a case. The deadline that matters is your limitation period.

• Limitation period: generally 2 years from when you discovered the claim (Limitations Act, 2002).
• Urgent: if 18 months or more have passed, move quickly.
• Other time limits: some kinds of claims have shorter or different limits [VERIFY: which ones].

Forms

You do not file any forms at this stage. It helps to look ahead at the form you will use next:

• Form 7A: Plaintiff's Claim
• Form 1A: Additional Parties, if there is more than one plaintiff or defendant

Common mistakes

• Waiting too long. People often hope the other side will pay "soon." Months go by, and the limitation period runs out.
• Counting interest in the $50,000. The limit does not include interest and costs. Add up only what you are owed.
• Asking for more than you can prove. Every dollar you claim needs a reason and, ideally, a document.
• Using the wrong name. Suing "Joe's Renos" when the business is legally "1234567 Ontario Inc." can make a judgmentJudgmentThe court's final decision in a case, saying who wins and what must be paid or done. A judgment can come after a trial, by default, or by agreement.Close definition of Judgment hard to collect.
• Skipping the demand letter. It is a cheap step, and it sometimes ends the dispute.
• Losing evidence. Texts get deleted and phones get replaced. Save copies now.

What happens next

Once you have done these checks, look closely at your time limit. Go on to the next stage: Limitation periods.

Want the big picture first? Go back to the Small Claims Court guide.