How much does it cost to litigate a contract dispute in Ontario?
The cost of litigating a contract dispute in Ontario varies widely depending on the amount at issue, the court, and how far the matter proceeds. In Small Claims Court (disputes up to $35,000), lawyer fees and filing costs are relatively modest, and many parties self-represent. Court filing fees are set by regulation and are generally a few hundred dollars.
In the Superior Court of Justice, litigation is significantly more expensive. Parties typically retain counsel, go through documentary discovery, examinations for discovery, and potentially a multi-day trial. Legal fees for a contested Superior Court trial can run into tens of thousands of dollars or more. Cases that settle early cost far less, but uncertainty about timeline and costs is real.
Ontario's "costs follow the event" rule means the losing party is usually ordered to pay a portion of the winner's legal costs — but partial indemnity costs typically cover only a fraction of actual fees paid, not everything. In some serious cases, substantial indemnity costs are awarded, covering a higher portion.
Contingency fee arrangements (where lawyers take a percentage of the recovery) are available in Ontario, including in contract disputes, and may make litigation more accessible when the damages are significant.
Key takeaways
- Small Claims Court is far more affordable than Superior Court litigation.
- Costs follow the event — the loser typically pays part of the winner's fees.
- Full legal costs are rarely recovered even when you win.
- Contingency fees may be available for significant contract claims.