Yes No Share to Facebook
Small Claims Court Limit
Involves Net From Set-Off Upon Sum Assessed
Last Updated: July 08 2026
Question: Is the set-off amount in a Small Claims Court case calculated from the $35,000 monetary jurisdiction limit or from the assessed amounts in the judgment?
Answer: In Ontario Small Claims Court, the $35,000 limit is about the net judgment the court awards, not a cap on the sums the court can assess on the claims and counterclaims. If there is an applicable set-off, courts typically calculate the set-off from the assessed amounts (the amounts found owing on the claims), then apply it to produce a net judgment within the Small Claims Court limit, so you do not lose jurisdiction just because the assessed figures are higher. The Divisional Court confirmed this approach in 2146100 Ontario Ltd. v. 2052750 Ontario Inc., 2013 ONSC 2483, noting the process is logically like deducting amounts owed to arrive at a net figure that falls within the monetary jurisdiction. For help understanding how set-off may affect your Small Claims Court outcome and what to file, VP Legal Services & Notary can assist with paralegal and notary support across Ontario, including preparing and reviewing your court documents and settlement materials, call (437) 286-1499 to get started.
Is the Set-Off Amount In a Small Claims Court Case Calculated From the Capped Court Limit?
If the Small Claims Court Assesses a Sum That Is Higher Than the Maximum Award Amount Allowed, the Assessed Amount Is the Basis For Reduction By Any Set-Off; Nevertheless, the Total Amount Granted Must Be Within the Court Award Limit.
Understanding the Small Claims Court Jurisdiction to Award Judgment As Net Set-Off Despite An Above Limit Assessment
In the Small Claims Court, a limit of $35,000, exclusive of legal costs and interest, currently applies; however, this limit applies to the amount that may be awarded as a Judgment rather than a limit upon the sums that may be assessed by the Small Claims Court. Furthermore, in cases where a set-off amount applies, the set-off is calculated from the assessed amount rather than from the award limit.
The Law
The case of 2146100 Ontario Ltd. v. 2052750 Ontario Inc., 2013 ONSC 2483, from when a limit of $25,000 applied to the Small Claims Court, confirms that the Small Claims Court may assess any sum and may apply from that sum, rather than from the court jurisdiction limit, a set-off sum when calculating a net Judgment award. Such principle was explicitly stated where it was said:
[17] In terms of the case at bar, the respondents expressly set out in their defendants' claim that they were owed over $42,000 from the appellants. They limited their ultimate recovery, however, to $25,000. Whether that limit is arrived at through set-off or abandonment of any sum over and above the monetary jurisdiction of the court is immaterial in my view: see Dunbar v. Helicon Properties Ltd., 2006 CanLII 25262 (ON SCDC), [2006] O.J. No. 2992, 2006 CarswellOnt 4580, 213 O.A.C. 296 (Div. Ct.).
[18] The respondents claimed a judgment of $25,000. They were awarded a judgment of $21,538.85. In my view, the process amounted to nothing more than the trial judge starting at $42,633 and making deductions for amounts owed to the plaintiff, to arrive at a net figure within the monetary jurisdiction of the court. This process is logically no different than assessing the value of a contract at $50,000, determining that $30,000 had been paid under the contract, leaving a balance owing of $20,000. There could be no doubt, in those circumstances, that the deputy judge had the jurisdiction to make a finding that the initial value of the contract was an amount in excess of the monetary limit of the court. But at the end of the day, it is the net judgment that matters. Here, the amount awarded was within the monetary jurisdiction of the Small Claims Court and did not exceed the amount claimed in the defendants' claim.
As occurred in the 2146100 case, the Judge assessed just over $42,000 on a Defendant's Claim as a counterclaim that was brought against the Plaintiff by the Defendant. The Judge then went on to assess slightly more than $21,000 as due from the Defendant to the Plaintiff. When determining the net Judgment award due, the Judge used the $42,000 assessed amount and applied the $21,000 set-off amount. Subsequently, upon Appeal, it was argued that the set-off should be calculated from the court jurisdiction limit rather than the assessed amount. The Divisional Court disagreed with the argument and upheld the Judgment from Trial.
Summary Comment
The monetary jurisdiction limit of the Small Claims Court applies to the amount which the court may issue as a Judgment award rather than as a limit to an amount that the court may assess. This becomes important in cases where a set-off calculation is involved whereas the set-off sum is taken away from the assessed sum rather than taken away from the Small Claims Court limit.
NOTE: A significant volume of online queries, such as “lawyers nearby” or “top lawyer in,” frequently indicates a desire for prompt, competent legal assistance rather than a certain job title. In Ontario, the same Law Society that governs lawyers also regulates licensed paralegals, granting them the authority to represent clients in specified litigation cases. Core functions of this role include advocacy, legal assessment, and procedural expertise. VP Legal Services & Notary provides legal representation within its permitted scope, focusing on strategic positioning, evidence preparation, and persuasive advocacy to attain efficient and positive outcomes for clients.
