Can a Foreigner Sue in Ontario Small Claims Court?

As the world becomes increasingly interconnected, we encounter more cases where individuals or corporations from the United States, the UK, and China sue in Ontario.
Toronto Small Claims Court, in particular, often sees cases between plaintiffs and defendants from other provinces and countries.
Can non-residents of Ontario use the Small Claims Court for enforcing contracts made with an Ontario resident? Can Ontario residents do the same outside Ontario?
In most cases, this is possible in Ontario. Below we offer answers to some of the most common questions related to the topic.

Can a company or individual from another country or province bring a claim to Ontario Small Claims Court?

Small Claims Court procedural rules do not prevent a foreigner or non-resident of Ontario from starting a lawsuit in the Ontario Small Claims Court.
Individuals or corporations from other provinces, the USA, the UK, Australia, China or other places can sue an Ontarian in Ontario Small Claims Court. There are two conditions:
- First, the amount of the claim should not exceed the monetary limit of the Small Claims Court. For now, this is CAD 35,000.
- Second, the defendant must do business or reside in Ontario or otherwise be within the Ontario Small Claims Court jurisdiction.

Can an Ontario company or resident sue someone from another province or foreign country in an Ontario Small Claims Court?

The answer is yes. However, there is one condition. The plaintiff must show that the cause of action for the claim arose in Ontario.
A cause of action is a fact or a set of facts that establish that a dispute is connected to Ontario. It allows filing a claim in Ontario. For example, let’s say the parties signed a contract for a sale in Toronto, the goods were shipped from Toronto and payment for goods was supposed to be received in Toronto. In this case, we can say that the cause of action arose in Toronto, Ontario. It is the case even if the purchaser of the goods lives or works elsewhere.

Can a judgment issued by a Small Claims Court in Ontario be enforced elsewhere?

An Ontario judgment is generally enforceable in other provinces of Canada.
All Canadian provinces except Quebec have laws that allow anyone to collect money based on a judgment issued in another province. These laws are similar across provinces. They typically require the person looking to collect money to register a judgment from another province with a court in the province where the plaintiff seeks to collect money.
Quebec has its own rules.
Some American states have legislation that recognizes Canadian judgments as valid. They allow the enforcement of these judgments under certain conditions. Other states and countries may have their own rules.

Can a judgment issued in another Canadian province or the USA be enforced in Ontario?

The answer is yes.
A non-resident of Ontario may register an out-of-province judgment with a court in Ontario. Then, the non-resident can enforce it in the same way as a judgment of the Ontario court.
This registration includes filing a motion with the court. Court considers the motion and registers the extra-provincial judgment for enforcement in Ontario.
This is somewhat different when it comes to judgments issued in Quebec, some states in the USA and certain other countries. Such foreign judgments are enforceable in Ontario. However, the process is somewhat more complicated. The rules require a holder of the foreign judgment to file a claim in the Ontario Small Claims Court. The purpose of the claim is to obtain an Ontario court decision confirming that the judgment is enforceable in Ontario.

It does not matter which court has issued a judgment in another province or country. If the amount of judgment is within the monetary jurisdiction of the Ontario Small Claims Court, this court may register and confirm an out-of-province or foreign judgment. For example, if a Superior Court in British Columbia or Alberta issued a judgment for $35,000, it can be enforced in Toronto Small Claims Court – there is no need to apply to the Superior Court of Justice.

No matter where you are in the world, a Toronto Small Claims Court paralegal can help you sue in Toronto Small Claims Court. Don’t hesitate to contact us today for an assessment of your case.

Read more about the Ontario Small Claims Court rules and procedures here.