- Ontario civil litigation generally follows a "loser pays" approach: the unsuccessful party is usually ordered to contribute something toward the successful party's costs.
- If you win in Small Claims Court, you may be able to recover some combination of: - Disbursements — out-of-pocket expenses directly tied to the case, such as filing fees and service…
- The takeaway: Small Claims Court was designed so legal costs don't swallow a modest claim.
Winning a Small Claims Court case in Ontario feels like the finish line — until you look at what it actually cost you to get there. Filing fees, time off work, and possibly a lawyer or paralegal's help all add up. The natural question is whether the person who lost has to pay you back for any of it.
The short answer is: sometimes, but not fully. Recovering costs in Small Claims Court works differently — and generally less generously — than in Ontario's higher courts. Understanding the difference before you file helps you set realistic expectations about what a win is actually worth.
This guide explains how the "loser pays" principle applies at the Small Claims level, what you can realistically expect to recover, and how that compares to Superior Court.
The "Loser Pays" Principle, Small Claims Style
Ontario civil litigation generally follows a "loser pays" approach: the unsuccessful party is usually ordered to contribute something toward the successful party's costs. This principle applies in Small Claims Court too, but the amounts involved — and the court's approach to awarding them — are meant to stay proportionate to what is, by design, a simplified and more accessible court.
Costs in any Ontario civil proceeding are always discretionary. A judge decides whether to award costs, and how much, based on the circumstances of the case. Small Claims Court judges (deputy judges) exercise that discretion with an eye to keeping the process accessible, which generally means cost awards stay modest relative to the amount claimed.
What You Can Realistically Recover
If you win in Small Claims Court, you may be able to recover some combination of:
- Disbursements — out-of-pocket expenses directly tied to the case, such as filing fees and service costs
- Representation costs — an amount toward what you paid a lawyer or licensed paralegal, though this is rarely a full reimbursement
- Compensation for your own time, in some cases, if you represented yourself
None of these are guaranteed, and none are calculated using a fixed formula. The deputy judge weighs the outcome, the parties' conduct during the case, and whether either side acted unreasonably — for example, refusing a reasonable settlement offer.
Small Claims Court vs. Superior Court on Costs
| Small Claims Court | Superior Court of Justice | |
|---|---|---|
| Costs approach | Loser-pays, but capped and proportionate | Loser-pays, generally on a partial indemnity scale |
| Typical scale | Modest recovery relative to claim size | Can be substantial on complex or lengthy matters |
| Representation | Lawyers and licensed paralegals both appear | Generally lawyer territory beyond Small Claims-level work |
| Design intent | Built for accessible, lower-cost resolution | Built for larger, more complex disputes |
The takeaway: Small Claims Court was designed so legal costs don't swallow a modest claim. That design choice is also why cost recovery there is more limited than what a Superior Court litigant might see.
Filing Fees Are Not the Same as a Costs Award
It is worth separating two things people often lump together:
- Filing and process fees — what you pay the court to issue your claim, file a defence, bring a motion, or enforce a judgment. These apply regardless of who ultimately wins.
- A costs award — money the losing side may be ordered to pay you, on top of the underlying judgment, to offset some of what the case cost you.
Small Claims Court fees are modest by design (figures change periodically — as of mid-2026, always verify the current amount before you rely on it). A costs award, if you get one, may offset some — but rarely all — of what you spent pursuing or defending the claim.
When a Court Might Award Less Than You Hoped
Even a successful party can walk away with a smaller costs award than expected. Common reasons include:
- The claim amount was modest, so the proportionate cost award is modest too
- You rejected a reasonable settlement offer that turned out to be better than what you won at trial
- Your own conduct during the case added unnecessary time or expense
- The deputy judge simply exercised their discretion differently than you expected
Because costs are always discretionary, there is no way to guarantee a specific outcome in advance.
Frequently asked questions
Do I need a lawyer to recover costs in Small Claims Court?
No. Small Claims Court is designed for self-represented litigants, and you can still be awarded some costs even without a lawyer or paralegal. Professional help, including for the costs argument itself, can still affect how a claim is presented and understood.
Can I be ordered to pay the other side's costs if I lose?
Yes. The loser-pays principle cuts both ways. If you bring or defend a claim in Small Claims Court and lose, you can be ordered to contribute to the other party's costs, though generally at a modest, proportionate level.
Does winning automatically mean I get my legal fees back?
No. A costs award is separate from — and usually smaller than — your actual legal spend. Courts rarely order a full reimbursement of legal fees, even for a successful party.
Is Small Claims Court only for very small disputes?
No. Small Claims Court's monetary jurisdiction now covers meaningfully sized claims (verify the current limit before filing, since figures are adjusted periodically), so it is not reserved for trivial disagreements.
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