If someone owes you money or has caused you financial loss, you cannot wait indefinitely to take legal action. The Ontario Small Claims Court limitation period sets a deadline for starting most claims — and missing it can prevent you from recovering compensation, even if your claim would otherwise have merit.
How Long Do You Have to Sue in Ontario?
In most cases, a legal proceeding must be started within two years of the date the claim was discovered. This is the basic limitation period under Ontario’s Limitations Act, 2002.
A claim is generally “discovered” on the earlier of:
- the date you first knew the loss had occurred, who caused or contributed to it, and that a legal proceeding would be an appropriate way to seek a remedy; and
- the date a reasonable person in your circumstances ought to have known those facts.
The discovery date is not necessarily the date of the original event. A simple example: if an invoice was due on March 1 and went unpaid, the clock usually starts running around that date — not the date you finally gave up chasing payment.
When Does the Limitation Period Begin?
Although two years is the general rule, deciding when the period starts is not always straightforward. The analysis can be affected by delayed discovery of a loss, continuing conduct, written acknowledgements of certain debts, a claimant’s legal incapacity, or other circumstances.
Some claims are also governed by different deadlines under other legislation. Do not assume the standard two-year period automatically applies — or that you have two full years remaining.
Do Negotiations Stop the Limitation Period?
Negotiating a settlement generally does not, by itself, stop the limitation period from running.
Parties often keep discussing payment while the deadline quietly approaches. Unless the limitation period has been legally suspended or otherwise affected, waiting for negotiations to conclude could leave the claim legally barred. Starting a proceeding — typically by filing a Plaintiff’s Claim (Form 7A) — before the deadline may be necessary to preserve your rights, even while settlement discussions continue.
What Claims Can Ontario Small Claims Court Hear?
Ontario Small Claims Court hears eligible claims for money or the return of personal property valued at up to $50,000, excluding interest and costs — a limit that increased from $35,000 on October 1, 2025.
Common Small Claims Court matters include:
- unpaid invoices;
- breach of contract claims;
- unpaid personal or business loans;
- property damage;
- claims involving goods or services; and
- other eligible civil disputes within the court’s jurisdiction.
If a claim exceeds $50,000, you may need to proceed in the Superior Court of Justice — or give up the portion above the limit to stay in Small Claims Court. The right choice depends on the amount claimed and the remedy you are seeking.
Why You Should Act Promptly
Waiting to pursue a claim creates problems beyond the limitation period. Documents get misplaced, electronic records get deleted, memories fade, and witnesses become difficult to locate.
Getting advice early can help you:
- identify the possible limitation deadline;
- determine whether Small Claims Court is the appropriate forum;
- organize and preserve relevant evidence;
- identify the correct parties; and
- prepare and file the required court documents.
Every case is different, and limitation periods can involve complex legal questions. If you believe you may have a claim — or you have been served with one — book a free 15-minute consultation rather than assuming you have plenty of time.
This article provides general legal information only and is not legal advice. Limitation periods depend on the facts and applicable law. Consult a licensed legal professional about your particular circumstances.
Merve Ozdemir is a Licensed Paralegal and Notary Public, and the founder of Unity Legal and Notary Services.