Small Claims Court costs and the section 29 cap

Scope of this guide

This guide describes the general framework for costs in the Small Claims Court. Only the court can decide whether costs are awarded, in what amount, and whether the section 29 exception applies. This is general information, not a prediction.

Costs are discretionary

In the Small Claims Court, costs are always in the court's discretion. Winning does not automatically produce a costs award, and the amount ordered is often less than what a party actually spent. The costs framework is set by section 29 of the Courts of Justice Act and Rule 19 of the Rules of the Small Claims Court.

The ordinary 15% cap on section 29

Section 29 generally limits costs other than disbursements to $15% of the amount claimed or the value of the property sought. In practice, this puts a hard ceiling on representation-related costs - for example, the paralegal or lawyer fee a court can order the losing side to pay.

What sits outside the cap

Disbursements - court fees, service fees, transcript costs, and similar reasonable out-of-pocket expenses - are not subject to the ordinary 15% cap and are considered separately. The court may still tax or disallow disbursements it does not consider reasonable or necessary.

The unreasonable-behaviour exception

The court may exceed the ordinary cap where it considers a higher amount necessary to penalise a party or a party's representative for unreasonable behaviour in the proceeding. Only the court decides whether the exception applies and what, if any, costs are awarded. Do not treat any online estimator as a prediction of a costs award.

Rule 14.07 offers to settle

Rule 14.07 provides costs consequences where a party makes a written offer to settle that meets the Rule's conditions and does at least as well at trial as the offer. In that situation the court may award an amount not exceeding twice the costs of the party who made the offer, excluding disbursements, from the offer date forward - the doubling is a ceiling, not an automatic entitlement, and it remains subject to Rule 14.07's conditions and the court's discretion. Compliance with the Rule's timing, form, and content requirements matters, and mistakes are common.

Representing yourself

Self-represented parties can also be awarded costs, but a court is generally more conservative in setting an amount because there is no professional fee to indemnify.

Worked example

Facts. A successful plaintiff claimed $20,000 and had $600 in court fee disbursements. The plaintiff was represented by a paralegal and asks the court to award costs at the ordinary limit.

Section 29 ordinary cap. $15% × $20,000 = $3,000 for costs other than disbursements. Disbursements sit outside the cap, so the total the court could award on this basis would be $3,000 for representation costs plus $600 in disbursements - before the court's discretion to award less.

Exception. Section 29 permits the court to exceed the ordinary cap where it considers a higher amount necessary to penalise a party or a party's representative for unreasonable behaviour. Only the court decides whether the exception applies and what, if any, additional amount is awarded.

Costs Estimator

Official sources

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