Difference between revisions of "Choosing the Proper Forum for Small Claims (20:IV)"

{{REVIEWED LSLAP | date= August 13, 2020}}

There are several options for resolving most civil disputes in British Columbia: Alternative Dispute Resolution, specialised tribunals, Small Claims Court, the Civil Resolution Tribunal, and the Supreme Court of British Columbia.

Certain claims must be made through administrative tribunals instead of the courts. See, for example, Section IV.C: Civil Resolution Tribunal for small claims matters under $5000 and strata matters, [[Introduction to Employment Law (9:I) | Chapter 9: Employment Law]], [[Introduction to Workers%27 Compensation (7:I) | Chapter 7: Workers’ Compensation]], [[Introduction to Employment Insurance (8:I) | Chapter 8: Employment Insurance]], [[Introduction to Landlord and Tenant Law (19:I) | Chapter 19: Landlord and Tenant Law]], and [[Introduction to Human Rights (6:I) | Chapter 6: Human Rights]].  

In order to bring a claim in British Columbia, the court or tribunal must have territorial jurisdiction. If either the subject matter of the claim (e.g., the contract or wrongful act) occurred in British Columbia or the Defendant resides or does business in British Columbia, this may be a sufficient connection for a court or tribunal to assert jurisdiction. It is sometimes unclear whether British Columbia has a sufficient connection to the claim and is the most appropriate forum. If the court’s jurisdiction is not clear, a claimant should obtain legal advice and review applicable case law (See ''[http://canlii.ca/t/frv57 DreamBank Online Gifting v BeneFACT Consulting]'', 2011 BCPC 459 (CanLII) [DreamBank]; ''[http://canlii.ca/t/22j91 Teck Cominco Metals v Lloyds Underwriters]'', [2009] 1 SCR 321; ''[http://canlii.ca/t/1vv4f Purple Echo Productions, Inc. v KCTS Television]'', 2008 BCCA 85; ''[http://canlii.ca/t/53bn Jordan v Schatz]'', 2000 BCCA 409; ''[http://canlii.ca/t/1frp2 Tolofson v Jensen]'', [1994] 3 SCR 1022).  

The Small Claims Court is the civil division of the British Columbia Provincial Court and is designed to accommodate unrepresented parties who do not have legal training. The overriding purpose of the Small Claims Court is to resolve disputes in a “just, speedy, inexpensive, and simple manner.” (''SCA'', s 2). The Court uses simplified forms, procedures, and rules and encourages settlement.  

Small Claims Court is a formal court that applies the law. Although the procedures and rules of evidence are slightly relaxed in order to make it more accessible to the public, it is significantly more formal and principled than the courts portrayed in television programmes.  

There are three primary considerations when choosing Small Claims Court: the amount claimed, the court’s jurisdiction, and costs.

''' As of June 1, 2017, Small Claims Court can award a judgment of up to $35,000.''' A person whose claim exceeds $35,000 may still choose Small Claims Court but must expressly state in the notice of claim or counterclaim that they will abandon the amount necessary to bring their claim or counterclaim within the court’s jurisdiction (''Rules'' 1(4) and 1(5)). Interest and costs are not included in calculating the $35,000 limit.  

A claimant must sue all responsible parties for damages arising from a single event in '''one''' claim; the claimant cannot split claims for damages arising out of a single event into multiple claims in an attempt to circumvent the $35,000 limit. If, however, there are multiple events giving rise to a claim, even if closely related, they may be brought in separate actions (''[http://canlii.ca/t/5l70 Wah Loong Ltd v Fortune Garden Restaurant Ltd.]'', 2000 BCPC 163 (CanLII)). For example, if a contractor issues an invoice for $20,000 at the end of January for work done in January and issues another invoice for $20,000 at the end of February for work done in February and both invoices go unpaid, the contractor may sue on each invoice in a separate claim. Rule 7.1(4) permits certain related claims to be heard together.  

Where a defendant has pleaded a set-off (the plaintiff owes the defendant money that should be deducted from their award), contributory negligence (the plaintiff’s negligence also contributed to their loss), or shared liability (there is another party who is also liable for the same action), the court may consider these defences against the full amount of the claimant’s claim provided that the net judgment does not exceed $35,000. This also applies when a set-off forms the basis for a standalone counterclaim. For example, if the claimant proves a $50,000 claim and the defendant establishes a $35,000 set-off, the claimant will have a net judgment of $15,000.  

*relief from opposing claims to personal property.  

The court does not have jurisdiction in claims for libel, slander, or malicious prosecution unless such authority is expressly granted in limited circumstances by another statute (e.g., s-s  171(3) of the ''Business Practices and Consumer Protection Act'' allows for contraventions  of this act to be heard in Provincial Court even if they involve claims for libel or slander (''Business Practices and Consumer Protection Act'', SBC 2004, c 2, s 171(3))).

The court cannot resolve disputes involving residential tenancy agreements nor can it grant remedies created by statute if there is another  dispute resolution mechanism prescribed in the statute. For example, claims for overtime must be claimed through the Employment Standards Branch and not in Small Claims Court. The court has very limited jurisdiction in residential tenancy (''Residential Tenancy Act'', SBC 2002, c 78), employment (''Employment Standards Act'', RSBC 1996, c 113; ''[http://canlii.ca/t/1wrdg Macaraeg v E. Care Contact Centers Ltd.]'', [2008] BCCA 182; ''[http://canlii.ca/t/23zp8 UBC v Moore]'', 2009, BCPC 186), human rights (''Human Rights Code'', RSBC 1996, c 210), and strata property matters (See ''Strata Property Act'', SBC 1998, c 43; ''[http://canlii.ca/t/1rphw Frechette and Meagher v Crosby Property et al]'', 2007 BCPC 174 (CanLII); ''[http://canlii.ca/t/fl2d8 Stettner v Strata Plan PG 56]'', 2011 BCPC 82; ''[http://canlii.ca/t/1m7s8 Valana v Law et al]'', 2005 BCPC 587; ''[http://canlii.ca/t/1m0b6 Heliker et al v Strata Plan VR 1395]'', 2005 BCPC 500; ''David v Vancouver Condominium Services Ltd.'', [1999] BCJ No 1869; ''McNeill v Strata Plan – KAS1099'', [1996] BCJ No. 2553; ''Strata Plan LMS2064 v Biamonte'', [1999] BCJ No. 1267; ''Seller v Singla Bros. Holdings Ltd'', [1995] BCJ No. 2826; ''Beck v Andrews Realty Ltd. (cob RE/Max Real Estate Services)'', [1994] BCJ No 2796).  

Other noteworthy areas of law often falling outside the jurisdiction of the Small Claims Division are divorce, trusts, wills (i.e., probate), prerogative writs, and bankruptcy. However, the court may have jurisdiction over cases where these areas of law are involved only circumstantially – where the pith and substance of the case does fall within the court’s jurisdiction (See ''[http://canlii.ca/t/1tt0t AMEX Bank of Canada v Golovatcheva]'', 2007 BCPC 369, at para 12). In ''AMEX Bank of Canada v Golovatcheva'', the claimant alleged that the defendant had committed  fraud by running up a debt that she knew she would escape by declaring bankruptcy. The Small Claims court exerted jurisdiction over the issue of fraud.