A Superior Court action may be appropriate where:

• The amount claimed exceeds $50,000, excluding interest and costs, and the creditor does not wish to abandon the excess to remain within the Small Claims Court’s jurisdiction.

• The claim involves multiple invoices, contractual disputes, personal guarantees, secured obligations, allegations of misrepresentation, or other issues requiring more extensive documentary production and examination for discovery.

• The debtor resides or carries on business in Ontario, or the contract, transaction, services, delivery, or non-payment has a sufficient connection to Ontario.

• Reasonable collection efforts, including demands for payment and settlement discussions, have been unsuccessful. Although a demand letter is not always legally required, it may clarify the parties’ positions, establish a payment deadline, and support a later claim for costs.

• The action is commenced within the applicable limitation period. Under the Limitations Act, 2002, the general limitation period is two years from the date the creditor discovered, or reasonably ought to have discovered, that a legal proceeding was an appropriate means of recovering the debt.

Where the claim is $200,000 or less, it will generally proceed under the Simplified Procedure. This process limits examinations for discovery and imposes restrictions on recoverable costs and disbursements. Claims exceeding $200,000 ordinarily proceed under the regular procedure, which permits more extensive discovery and other procedural steps.

To properly assess and advance your claim, we will require the documents and information establishing the debt, the applicable contractual terms, and the debtor’s failure to pay.

Contract or Agreement:

Please provide any written, oral, or implied agreement governing the transaction, including:

• Signed contracts or service agreements;

• Credit applications and personal guarantees;

• Purchase orders, estimates, and accepted quotations;

• Terms and conditions of sale;

• Emails or text messages confirming the agreement; and

• Any amendments, renewals, or subsequent arrangements.

Unpaid Invoices and Account Records:

Please provide:

• All unpaid invoices;

• Statements of account;

• A complete payment history;

• Records of partial payments or credits;

• Applicable interest provisions;

• NSF charges or other contractual fees; and

• A current calculation of the outstanding balance.

Proof of Delivery or Performance:

Supporting records may include:

• Signed delivery receipts;

• Bills of lading;

• Work orders;

• Completion certificates;

• Timesheets and work logs;

• Photographs or inspection reports;

• Emails acknowledging delivery or completion; and

• Records showing that the debtor accepted or benefited from the goods or services.

Communications With the Debtor:

Please provide all relevant communications, including:

• Payment demands;

• Emails and text messages;

• Admissions or acknowledgements of the debt;

• Requests for additional time to pay;

• Proposed payment plans;

• Complaints concerning the goods or services;

• Settlement discussions; and

• Formal demand letters.

We will also require:

• The debtor’s complete legal name and address;

• A corporate profile report, where the debtor is a corporation;

• The names of any guarantors or other parties potentially responsible for payment;

• A chronology of the transaction and subsequent non-payment;

• Details of any assets, bank accounts, real property, receivables, or business operations known to belong to the debtor;

• Information regarding any insolvency, bankruptcy, receivership, or restructuring proceeding involving the debtor; and

• Details of any security agreement, lien, mortgage, or registered financing statement relating to the obligation.

Depending on the contract and surrounding circumstances, the claim may seek:

• The unpaid principal balance;

• Contractual interest;

• Prejudgment interest under section 128 of the Courts of Justice Act;

• Postjudgment interest;

• Contractual charges, including NSF or late-payment fees;

• Damages arising from breach of contract;

• Possession or recovery of secured property, where legally available;

• Legal costs and recoverable disbursements; and

• Such further relief as the court considers appropriate.

A debt-collection action is generally commenced by issuing a Statement of Claim. After the claim is served, the defendant may deliver a Statement of Defence and raise any alleged set-off or counterclaim.

Depending on the procedure governing the action, the matter may involve:

• Exchange of pleadings;

• Documentary disclosure;

• Examinations for discovery;

• Motions concerning procedural or substantive issues;

• Mediation, where mandatory or otherwise appropriate;

• A pre-trial conference; and

• Trial or a motion for summary judgment.

Where the defendant fails to defend the action, the plaintiff may seek default judgment. Where there is no genuine issue requiring a trial, summary judgment may be available under Rule 20.

Obtaining judgment does not necessarily result in voluntary payment. If the debtor fails to satisfy the judgment, enforcement steps may include:

• Garnishment of bank accounts, accounts receivable, or other debts payable to the judgment debtor;

• A writ of seizure and sale of land;

• A writ of seizure and sale of personal property;

• Registration and renewal of a writ of execution;

• An examination in aid of execution to obtain information about the debtor’s income, assets, accounts, receivables, and financial affairs; and

• Further enforcement proceedings appropriate to the debtor’s circumstances.

The most effective enforcement strategy will depend on the debtor’s assets, ownership structure, financial condition, and whether other secured or judgment creditors have priority.

The monetary thresholds and procedure described above are reflected in Ontario’s current Rules of Civil Procedure, while prejudgment and postjudgment interest are governed by the Courts of Justice Act.