- Ontario civil litigation, including Small Claims Court, generally follows a "loser pays" principle — an unsuccessful party is usually ordered to contribute something toward the…
- - Court filing fees you paid to start and pursue the claim (these fees are set by regulation and adjusted periodically — the amount you actually paid is what typically gets factored in).
- - Your own time off work to attend hearings.
Winning a Small Claims Court case feels like the end of the story. Then the costs question comes up: does the losing side have to pay back everything the case cost you — filing fees, time off work, a paralegal's bill — or just the judgment amount itself?
The honest answer is: some of it, generally, but rarely all of it. Understanding what counts toward recovering costs after a Small Claims win helps you set realistic expectations before you even file.
The General Rule: The Losing Side Usually Contributes
Ontario civil litigation, including Small Claims Court, generally follows a "loser pays" principle — an unsuccessful party is usually ordered to contribute something toward the successful party's costs. But two words matter a lot here: "generally" and "contribute." Costs awards are always within the judge's discretion, and they are not designed to make you financially whole for every dollar and hour the dispute cost you.
What "Costs" Usually Includes
- Court filing fees you paid to start and pursue the claim (these fees are set by regulation and adjusted periodically — the amount you actually paid is what typically gets factored in).
- Service costs, such as paying someone to formally serve documents on the other party.
- Other reasonable, out-of-pocket disbursements directly tied to pursuing the claim.
- A modest allowance toward the cost of preparing and presenting your case, which is capped and calculated under Small Claims Court's own rules rather than billed at a lawyer's or paralegal's full hourly rate.
What's Usually NOT Fully Reimbursed
- Your own time off work to attend hearings.
- General stress, inconvenience, or the emotional cost of the dispute.
- A full hourly legal bill, if you hired representation — Small Claims Court's costs framework is deliberately modest and capped, not a dollar-for-dollar reimbursement of professional fees.
- Costs unrelated to actually pursuing the claim.
A Quick Comparison
| Cost Category | Usually Recoverable | Rarely Recoverable |
|---|---|---|
| Court filing fee you paid | Yes, typically | — |
| Cost of formally serving documents | Often, if reasonable | — |
| Representation fee (lawyer or paralegal) | Partially, within a set cap | Your full hourly bill |
| Lost time / inconvenience | — | Yes, not typically compensated |
| Unrelated expenses | — | Yes, not compensated |
When Does the Court Decide Costs?
Costs are generally addressed at the end of the case — after the judge has already decided who wins and how much. It's worth explicitly asking the court to address costs, and having your fee receipts and disbursement records ready, rather than assuming it happens automatically without any input from you.
One factor that can affect the outcome: if the other side made a genuine, formal settlement offer before trial that you turned down, and you ultimately did no better (or worse) at trial than that offer, the costs rules can work against you rather than for you. That's one more reason to take a serious settlement offer seriously, even if you'd rather have your day in court.
If You Lose Instead
The same general principle cuts both ways. If you're on the losing side, you may be ordered to contribute to the other party's costs — though, again, this is discretionary and modest in Small Claims Court compared to Superior Court, not an open-ended bill.
Frequently asked questions
Do I automatically get my filing fee back if I win?
Not automatically in the sense of a separate cheque — but a costs award, if the judge grants one, will typically account for the filing fee and other reasonable expenses you documented and asked the court to consider.
Can I recover the full amount I paid a paralegal or lawyer?
Generally, no. Small Claims Court's costs rules are capped and modest by design; they're meant to offset some of the cost of pursuing the claim, not fully reimburse professional fees dollar for dollar.
What if the other side ignored a reasonable settlement offer I made?
A formal settlement offer that the other side rejected — and then did worse than at trial — can work in your favour on costs. The reverse is also true if you're the one who turned down a good offer.
Can the judge decide not to award any costs at all?
Yes. Costs are always discretionary. A judge can decide the circumstances don't warrant a costs award, or can adjust the amount based on how each side conducted the case.
This is a litigation question
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