Difference between revisions of "Being Sued in Small Claims Court"

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{{Dial-A-Law Blurb}}
{{REVIEWEDPLS | reviewer = [https://www.ganapathico.com/our-team/anna-kurt/ Anna Kurt], Ganapathi Law Group|date= August 2017}} {{Dial-A-Law TOC|expanded = courts}}
{{Dial-A-Law TOC|expanded = smallclaims}}
If a notice of claim names you as a defendant in a Small Claims Court lawsuit, learn what options you have, how to act on them, and what happens next.
This script details being sued in small claims court.


==Do not ignore a notice of claim==
==What you should know==
If you receive a '''notice of claim''' from small claims court naming you as a '''defendant''', it means that someone is suing you. The person or company suing you is called the '''claimant'''.


A notice of claim may be handed to you personally by the claimant or by another adult, or it can be sent to you by registered mail. If you’re hard to find, the court may order that you be notified in some other way, such as an ad in the newspaper or a notice posted on your front door.
===If you receive a notice of claim===
If you receive a '''notice of claim''' in a Small Claims Court lawsuit naming you as a defendant, it means someone is suing you.


Once you receive the notice, don’t ignore it. You must respond to it—within 14 days of receiving the notice of claim if you live in BC, or within 30 days if you live outside of BC. If you don’t, the claimant may win the lawsuit automatically. This is called a '''default judgment''', explained below.
A notice of claim may be handed to you personally by the party suing you or by another person, or it can be sent to you by registered mail. If you’re hard to find, the court may order that you be notified in some other way, such as by a notice posted on your front door or an ad in the local newspaper.


==How do you reply to a notice of claim?==
Once you receive the notice, '''don’t ignore it'''. If you do nothing, the other party can get a judgment against you, just as if there had been a trial.
There are several ways to respond to a notice of claim. Here are the main ones:


*admit you owe the amount claimed in the notice
You must respond to the notice of claim ''within 14 days''. (If you live outside BC, you have 30 days to respond.) You can respond by filing a '''reply''' with the court. We explain how shortly. Or you can contact the other party to make arrangements you can both live with and the other party can withdraw the claim.
*admit you owe the amount claimed in the notice, but say that you can’t pay it
*deny you owe the amount claimed but admit you owe a different amount
*deny you owe anything


You may want to get legal advice before you proceed.
===If you admit the claim and intend to pay===
If you '''admit''' the claim, you can contact the other party directly and tell them. You can pay the amount claimed directly to them.


==If you admit you owe the amount claimed==
Alternatively, you and the other party might make some arrangements you can both live with. For example, they may agree to accept a reduced amount, or a payment plan. If so, the other party can file a '''consent order''' or a '''payment order''' with the court, and the lawsuit will end. (You must also pay their expenses, such as the fees to file the claim and deliver the notice to you.)
You can contact the claimant directly and offer to pay the claim. You must also pay the claimant’s expenses, such as the fees to file the claim and deliver the notice to you. You should get a receipt and have the claimant sign a form called a notice of withdrawal, which you can get from the [http://www.smallclaimsbc.ca/court-forms small claims website] or from the small claims court [http://www.smallclaimsbc.ca/court-locations registry]. You should then take this form to the registry to end the lawsuit.


Or, you and the claimant might reach some other agreement. If so, you may both sign a consent order and file it with the small claims court registry, or the claimant may file a payment order with the registry. If you follow the instructions in the consent order or payment order, the lawsuit will end.
===If you admit the claim, but can’t pay it===
If you admit the claim, but can’t pay the amount involved, you should file a '''reply''' to the claim. A blank reply form should have been attached to the notice of claim. If you didn’t get a blank reply form with the notice, you can get it online at [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/documents-forms-records/court-forms/small-claims-forms gov.bc.ca/smallclaims] or from any [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/courthouse-locations Small Claims Court registry]. On the reply, list the amounts you can pay and when you will pay.


==If you admit you owe the amount, but can’t pay it==
Then, '''file your reply''' with the Small Claims Court registry shown on the notice of claim. You must pay a filing fee.
In this case, you should fill out the '''reply''' form attached to the notice of claim. If you didn’t get a blank reply form with the notice of claim, you can get it [http://www.smallclaimsbc.ca/court-forms online]. Or you can get it from any small claims court [http://www.smallclaimsbc.ca/court-locations registry]. On the reply, list the amounts you can pay and when you will pay.


Then, file your reply with the small claims court registry shown on the notice of claim. The small claims website lists [http://www.smallclaimsbc.ca/court-locations court registry addresses]. The registry will send a copy to the claimant, who will decide whether to accept your proposed payment plan.
The registry will send a copy of your reply to the other party. They will decide whether to accept your proposed payment plan.


If the claimant accepts your reply, you will receive a '''consent order''' to sign. It will end the lawsuit. If the claimant doesn’t accept, you can ask for a payment hearing, or the claimant may summon you to a payment hearing where the court will set a payment schedule. If you get a summons, you must go to the hearing.
If the other party accepts your reply, you will receive a '''consent order''' to sign. It will end the lawsuit. If the other party doesn’t accept, you (or they) can ask for a '''payment hearing''', where the court will set a payment schedule.


==If you deny you owe the amount claimed, or anything==
{| class="wikitable"
If you admit the claim but disagree with part of it, fill out a reply and explain on it what parts you disagree with and what parts you agree with. File it with the small claims court registry. You must pay a filing fee for the reply.
|align="left"|'''Tip'''
You must file the reply ''within 14 days'' of receiving the notice of claim. (If you live outside BC, you have 30 days to file the reply.)
|}


If you deny the whole claim, complete a reply, saying why. You do not need to describe everything about your case, as you’ll get a chance to present your case later. Just list the reasons why you deny the claim. Evidence is not submitted at this stage, and the reply should be brief, factual, and specific.
===If you deny the claim, or part of it===
If you disagree with part of the claim, fill out the '''reply''' form. You can get it online at [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/documents-forms-records/court-forms/small-claims-forms gov.bc.ca/smallclaims] if the notice of claim didn’t have a blank reply form attached. Explain on the reply form what parts of the claim you disagree with and what parts you agree with. File the reply with the [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/courthouse-locations Small Claims Court registry]. You must pay a filing fee.


==If you dispute the claim and lose==
If you deny the whole claim, fill out the '''reply''' form. List the reasons why you deny the claim. You do not need to describe everything in detail, as you’ll get a chance to present your case later. Evidence is not submitted at this stage, and the reply should be brief, factual and specific. File the reply with the [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/courthouse-locations Small Claims Court registry], together with the filing fee.
If the case goes to trial and you lose, you will have to pay the amount of the judgment, plus the claimant’s fees and costs for getting the court documents to you. The judge can also order you to pay an additional 10% of the amount claimed if you file a reply and go to trial when you had no reasonable chance of winning. Also, if you refused to settle the claim (for an amount the claimant offered) and the trial judgment is more than or equal to the claimant’s offer, you may have to pay a penalty of up to 20% of the offer.


==How long do you have to file a reply?==
===If you ignore the claim===  
If you live in BC, you have 14 days after you receive the notice of claim. If you live outside of BC, you have 30 days after you receive the notice.
If you receive a notice of claim and do nothing, the other party can get a judgment against you, just as if there had been a trial. This is called a '''default order'''.


==What if you ignore a claim or don’t file a reply in time?==
After the time for you to reply has passed (14 days if you live in BC), the other party can apply to court for the default order. If their claim is for a debt, a default order may be made without a hearing. If the claim is not for a debt, the court will schedule a '''default hearing''', where a judge decides the amount you will have to pay.
The claimant can get a default order against you without your having a chance to dispute their claim. The court will decide the case only on the facts and evidence from the claimant. You can’t defend yourself or explain your side. And you may have to pay the claimant everything they ask for.


==Other options==
===If you dispute the claim and lose===
If the case goes to trial and you lose, you will have to pay the amount of the judgment, plus the other party’s fees and costs for getting the court documents to you.


*If you have your own claim against the claimant, you can file a '''counterclaim''' (part of the reply form) and the judge would later decide who was at fault.
The judge can also order you to pay an additional 10% of the amount claimed if you file a reply and go to trial when you had no reasonable chance of winning. Also, if the other party makes a '''settlement offer''' that you refuse, and the trial judgment is more than or equal to their offer, you may have to pay a penalty of up to 20% of the offer.
*Or, you may admit that you owe money, but believe the claimant also owes you money for some other reason. In this case, you can file a counterclaim claiming a '''set-off'''. A set-off involves using the money the claimant owes you to reduce the amount that you owe the claimant. 
*Or, you may think another person should pay all or part of the claim against you. If so, you can file a '''third-party notice''' (available on the [http://www.smallclaimsbc.ca/court-forms small claims website]) to bring that other person into the lawsuit.


All these options require you to pay another filing fee.
===If you have a claim of your own===
If you have your own claim against the other party relating to the matters in dispute, you can file a counterclaim. There is space on the reply form for you to describe your '''counterclaim'''. If your case goes to trial, the judge will decide on both the original claim and your counterclaim.


==If the lawsuit proceeds==
If you admit the claim, but believe the other party also owes you money for some other reason, you can file a counterclaim claiming a '''set-off'''. A set-off involves using the money the other party owes you to reduce the amount you owe them.
After you file your reply (and maybe counterclaim or third-party notice), the registry will send a copy of it to the claimant, and a third-party notice to any third parties you added.


For most claims, the registry will hold a '''settlement conference'''. The registry will tell you of the date and time for this meeting. The claimant, a judge, and you will attend. The goal of the settlement conference is to settle the case before going to trial. If the claim cannot be settled, it will go to trial.
Each of these options require you to pay another filing fee.


You can try to resolve the claim any time before trial. If the claim is over $10,000 and you want the claimant to attend a [http://www.smallclaimsbc.ca/settlement-options/mediation mediation meeting] with you (where a neutral mediator will try to resolve the dispute), you can file a '''notice to mediate'''. You may also receive a notice to attend a mediation session. Script [[What is Small Claims Court (Script 165)|165]] has more on mediation.
===If you think another party is responsible===
You may think another person should pay all or part of the claim against you. If so, you can file a '''third party notice''' to bring that other person into the lawsuit. You can get the third party notice form online at [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/documents-forms-records/court-forms/small-claims-forms gov.bc.ca/smallclaims] or from any [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/courthouse-locations Small Claims Court registry].


You must attend the settlement conference or mediation. Otherwise, a payment order may be made against you for the amount claimed. If you cannot attend, you must notify the scheduler immediately and seek an adjournment or postponement of the scheduled date.
==What happens next==


==The most important thing is to file a reply on time==
===If you admit the claim===
If you get a notice of claim, you must file a reply within 14 days (if you live in BC).
If you pay the amount claimed to the other party, you should get a receipt. The other party can end the lawsuit by filing a '''notice of withdrawal'''.


==More information==
Alternatively, if you and the other party make arrangements you can both live with (such as you paying a reduced amount or a payment plan), the other party may file a '''consent order''' or a '''payment order'''. You will get a copy of the order, which ends the lawsuit.
*Check the [http://www.smallclaimsbc.ca/ small claims website] and the [http://www.provincialcourt.bc.ca/types-of-cases/small-claims-matters provincial court website]. Also, the BC government has guides on [http://www2.gov.bc.ca/gov/content/justice/courthouse-services/small-claims/how-to-guides/making-a-claim making a claim], [http://www.ag.gov.bc.ca/courts/small_claims/info/guides/reply.htm replying to a claim], [http://www.ag.gov.bc.ca/courts/small_claims/info/guides/serving.htm serving documents], [http://www.ag.gov.bc.ca/courts/small_claims/info/guides/getting_results.htm getting ready for court], and [http://www.ag.gov.bc.ca/courts/small_claims/info/guides/getting_results.htm getting results].
*Check the other Dial-A-Law scripts in this [http://www.cbabc.org/For-the-Public/Dial-A-Law/Scripts/Small-Claims-Court small claims court series].


(These forms are available online at [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/documents-forms-records/court-forms/small-claims-forms gov.bc.ca/smallclaims].)


===If you file a reply===
If you file a reply, the court registry will send a copy of it to the other party. If you file a third party notice, the registry will send it to the third party you added.


[updated August 2017]
For most claims, the court will schedule a '''settlement conference'''. The registry will tell you the date and time for the conference. You must attend. The judge will give their opinion of the case during the conference. If the claim cannot be settled, it will go to '''trial'''.


'''The above was last reviewed for accuracy by Anna Kurt and edited by John Blois.'''
You can try to resolve the claim any time before trial. If the claim is over $10,000, you or the other party can file a '''notice to mediate''', which will result in a '''mediation session'''. There, a neutral mediator will try to help you both come to an agreement on the issues. See our information on [[Going to Trial in Small Claims Court|going to trial in Small Claims Court]] for more on this option, as well as what happens at trial.


----
{| class="wikitable"
----
|align="left"|'''Tip'''
You must attend the settlement conference and any mediation session that is set. Otherwise, a '''payment order''' may be made against you for the amount claimed. If you cannot attend, notify the court immediately and seek an adjournment or postponement of the scheduled date.
|}


==Who can help==
===With your case===
You do not need a lawyer to go to Small Claims Court. But you'll probably better understand the process, as well as the strength of your case, if you get '''legal advice'''. If you have limited means, you might be able to get legal help from pro bono services, a student legal clinic, or an advocate. See our information on [[Free and Low-Cost Legal Help|free and low-cost legal help]].
===More information===
The '''BC government''' website has how-to guides on Small Claims Court, including [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/small-claims/how-to-guides/replying-to-a-claim replying to a claim], serving documents, and getting ready for court.
* [https://www2.gov.bc.ca/gov/content/justice/courthouse-services/small-claims/how-to-guides Visit website]
The BC government’s '''Small Claims Court Filing Assistant''' walks you through the steps of completing court forms.
* [http://justice.gov.bc.ca/FilingAssistant/ Visit website]
The '''BC Provincial Court''' website features information on Small Claims Court, as well as past court decisions.
* [http://www.provincialcourt.bc.ca/ Visit website]
The '''Small Claims BC Online Help Guide''', from Justice Education Society, provides step-by-step information on each stage of a small claims case.
* [http://www.smallclaimsbc.ca/ Visit website]
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Latest revision as of 02:27, 5 November 2020

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by Anna Kurt, Ganapathi Law Group in August 2017.
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If a notice of claim names you as a defendant in a Small Claims Court lawsuit, learn what options you have, how to act on them, and what happens next.

What you should know

If you receive a notice of claim

If you receive a notice of claim in a Small Claims Court lawsuit naming you as a defendant, it means someone is suing you.

A notice of claim may be handed to you personally by the party suing you or by another person, or it can be sent to you by registered mail. If you’re hard to find, the court may order that you be notified in some other way, such as by a notice posted on your front door or an ad in the local newspaper.

Once you receive the notice, don’t ignore it. If you do nothing, the other party can get a judgment against you, just as if there had been a trial.

You must respond to the notice of claim within 14 days. (If you live outside BC, you have 30 days to respond.) You can respond by filing a reply with the court. We explain how shortly. Or you can contact the other party to make arrangements you can both live with and the other party can withdraw the claim.

If you admit the claim and intend to pay

If you admit the claim, you can contact the other party directly and tell them. You can pay the amount claimed directly to them.

Alternatively, you and the other party might make some arrangements you can both live with. For example, they may agree to accept a reduced amount, or a payment plan. If so, the other party can file a consent order or a payment order with the court, and the lawsuit will end. (You must also pay their expenses, such as the fees to file the claim and deliver the notice to you.)

If you admit the claim, but can’t pay it

If you admit the claim, but can’t pay the amount involved, you should file a reply to the claim. A blank reply form should have been attached to the notice of claim. If you didn’t get a blank reply form with the notice, you can get it online at gov.bc.ca/smallclaims or from any Small Claims Court registry. On the reply, list the amounts you can pay and when you will pay.

Then, file your reply with the Small Claims Court registry shown on the notice of claim. You must pay a filing fee.

The registry will send a copy of your reply to the other party. They will decide whether to accept your proposed payment plan.

If the other party accepts your reply, you will receive a consent order to sign. It will end the lawsuit. If the other party doesn’t accept, you (or they) can ask for a payment hearing, where the court will set a payment schedule.

Tip

You must file the reply within 14 days of receiving the notice of claim. (If you live outside BC, you have 30 days to file the reply.)

If you deny the claim, or part of it

If you disagree with part of the claim, fill out the reply form. You can get it online at gov.bc.ca/smallclaims if the notice of claim didn’t have a blank reply form attached. Explain on the reply form what parts of the claim you disagree with and what parts you agree with. File the reply with the Small Claims Court registry. You must pay a filing fee.

If you deny the whole claim, fill out the reply form. List the reasons why you deny the claim. You do not need to describe everything in detail, as you’ll get a chance to present your case later. Evidence is not submitted at this stage, and the reply should be brief, factual and specific. File the reply with the Small Claims Court registry, together with the filing fee.

If you ignore the claim

If you receive a notice of claim and do nothing, the other party can get a judgment against you, just as if there had been a trial. This is called a default order.

After the time for you to reply has passed (14 days if you live in BC), the other party can apply to court for the default order. If their claim is for a debt, a default order may be made without a hearing. If the claim is not for a debt, the court will schedule a default hearing, where a judge decides the amount you will have to pay.

If you dispute the claim and lose

If the case goes to trial and you lose, you will have to pay the amount of the judgment, plus the other party’s fees and costs for getting the court documents to you.

The judge can also order you to pay an additional 10% of the amount claimed if you file a reply and go to trial when you had no reasonable chance of winning. Also, if the other party makes a settlement offer that you refuse, and the trial judgment is more than or equal to their offer, you may have to pay a penalty of up to 20% of the offer.

If you have a claim of your own

If you have your own claim against the other party relating to the matters in dispute, you can file a counterclaim. There is space on the reply form for you to describe your counterclaim. If your case goes to trial, the judge will decide on both the original claim and your counterclaim.

If you admit the claim, but believe the other party also owes you money for some other reason, you can file a counterclaim claiming a set-off. A set-off involves using the money the other party owes you to reduce the amount you owe them.

Each of these options require you to pay another filing fee.

If you think another party is responsible

You may think another person should pay all or part of the claim against you. If so, you can file a third party notice to bring that other person into the lawsuit. You can get the third party notice form online at gov.bc.ca/smallclaims or from any Small Claims Court registry.

What happens next

If you admit the claim

If you pay the amount claimed to the other party, you should get a receipt. The other party can end the lawsuit by filing a notice of withdrawal.

Alternatively, if you and the other party make arrangements you can both live with (such as you paying a reduced amount or a payment plan), the other party may file a consent order or a payment order. You will get a copy of the order, which ends the lawsuit.

(These forms are available online at gov.bc.ca/smallclaims.)

If you file a reply

If you file a reply, the court registry will send a copy of it to the other party. If you file a third party notice, the registry will send it to the third party you added.

For most claims, the court will schedule a settlement conference. The registry will tell you the date and time for the conference. You must attend. The judge will give their opinion of the case during the conference. If the claim cannot be settled, it will go to trial.

You can try to resolve the claim any time before trial. If the claim is over $10,000, you or the other party can file a notice to mediate, which will result in a mediation session. There, a neutral mediator will try to help you both come to an agreement on the issues. See our information on going to trial in Small Claims Court for more on this option, as well as what happens at trial.

Tip

You must attend the settlement conference and any mediation session that is set. Otherwise, a payment order may be made against you for the amount claimed. If you cannot attend, notify the court immediately and seek an adjournment or postponement of the scheduled date.

Who can help

With your case

You do not need a lawyer to go to Small Claims Court. But you'll probably better understand the process, as well as the strength of your case, if you get legal advice. If you have limited means, you might be able to get legal help from pro bono services, a student legal clinic, or an advocate. See our information on free and low-cost legal help.

More information

The BC government website has how-to guides on Small Claims Court, including replying to a claim, serving documents, and getting ready for court.

The BC government’s Small Claims Court Filing Assistant walks you through the steps of completing court forms.

The BC Provincial Court website features information on Small Claims Court, as well as past court decisions.

The Small Claims BC Online Help Guide, from Justice Education Society, provides step-by-step information on each stage of a small claims case.

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