In Ontario, a business typically has exactly 20 calendar days to file and serve a Statement of Defence after being served with a Statement of Claim within the province. Failing to meet this strict deadline means your business could be “noted in default,” leading to an automatic judgment against you without a trial. The standard court filing fee is roughly $160 CAD.
Being served with a lawsuit can be incredibly stressful for any business owner. Whether you run a construction firm in Toronto, a tech startup in Waterloo, or a retail shop in Mississauga, receiving a Statement of Claim means you are formally being sued in the Ontario Superior Court of Justice. Ignoring this legal document is the worst mistake a business can make. The clock starts ticking the moment the documents are handed to you or your registered corporate office.
Under the Ontario Rules of Civil Procedure, you must respond with a formal document called a Statement of Defence. ⚠️ It is critical to note that in Ontario, incorporated businesses generally cannot represent themselves in the Superior Court of Justice; they are legally required to hire a lawyer to act on their behalf. Below, we break down the step-by-step process of filing your defence, the exact timelines, and the costs involved in protecting your business.
Step-by-Step Process to Defend a Claim in Ontario
Filing a Statement of Defence is a rigorous procedural task. The Ontario Superior Court of Justice requires exact formatting, specific legal arguments, and proper service on all parties involved. Here is how the process generally unfolds.
Step 1: Determine the Date of Service
The 20-day countdown begins on the “effective date of service.” If the process server hands the document directly to an officer of your corporation, the clock starts immediately. If it is served by an alternative method (like registered mail or leaving it at your corporate address), the rules dictate when service is legally considered “effective.” Calculating this date accurately is paramount.
Step 2: File a Notice of Intent to Defend (Optional but Recommended)
If 20 days is not enough time to hire a lawyer and draft a complex response, your law firm can quickly file a Notice of Intent to Defend. 📝 Serving and filing this simple one-page document automatically grants your business an additional 10 days to prepare your full Statement of Defence. This is a common tactic used by civil litigation lawyers across Ontario.
Step 3: Investigate the Allegations
Before putting pen to paper, your lawyer must investigate the plaintiff’s claims. This involves reviewing your business records, emails, contracts, and internal communications. For example, if a supplier in Brampton is suing you for an unpaid invoice, your lawyer will need to gather evidence that the goods were defective or never delivered to build a strong defence.
Step 4: Draft the Statement of Defence
The Statement of Defence is a highly structured legal document. Your lawyer will draft it to specifically admit, deny, or claim no knowledge of every single paragraph in the plaintiff’s Statement of Claim. If your business also has a claim against the plaintiff (such as damages for breach of contract), your lawyer will draft a Counterclaim to be filed at the same time.
Step 5: Serve the Plaintiff
Once drafted, the document cannot just be sent to the court. It must first be formally served on the plaintiff’s lawyer. In Ontario, service between lawyers is often done electronically via email, provided both parties agree, which significantly speeds up the process.
Step 6: File with the Superior Court of Justice
Finally, the served Statement of Defence, along with an Affidavit of Service proving the plaintiff received it, must be filed with the local courthouse. Today, most commercial civil litigation filings are completed online through the Justice Services Online (JSO) portal, paying the required government filing fees electronically.
How Much Does It Cost in Ontario?
Defending a commercial lawsuit involves mandatory court fees and professional legal fees. In Ontario, the general costs are as follows:
- Court Filing Fee: Filing a Statement of Defence currently costs approximately $160 CAD (subject to minor Ministry updates).
- Lawyer Retainer: Most business litigation law firms require an upfront retainer of $3,000 to $10,000 CAD to begin working on a complex commercial file.
- Drafting Fees: Depending on the complexity of the allegations, lawyer fees to investigate and draft the pleading typically range from $2,500 to $7,500 CAD.
How Long Does the Process Take?
The timelines are strictly enforced by the court. Missing these deadlines allows the plaintiff to “note you in default,” meaning you lose the right to participate in the lawsuit. 🕘
| Action | Statutory Deadline |
|---|---|
| Served within Ontario | 20 calendar days to file a Defence. |
| Served elsewhere in Canada or the USA | 40 calendar days to file a Defence. |
| Served internationally (Overseas) | 60 calendar days to file a Defence. |
| With a Notice of Intent to Defend | Adds exactly 10 calendar days to the above deadlines. |
Frequently Asked Questions (FAQ)
What happens if I miss the 20-day deadline?
If you fail to file a Statement of Defence on time, the plaintiff can file a requisition to have your business “noted in default.” Once noted in default, you are deemed to admit the truth of all allegations, and the plaintiff can seek a default judgment for the money claimed without further notice to you.
Can a corporation defend itself without a lawyer in Ontario?
Generally, no. Under Rule 15.01(2) of the Rules of Civil Procedure, a corporation must be represented by a lawyer in the Superior Court of Justice. The only exception is if you formally request and receive special leave (permission) from a judge, which is rarely granted in complex business disputes.
Can we ask the plaintiff for an extension?
Yes. Lawyers frequently grant each other professional courtesies. Your lawyer can contact the plaintiff’s lawyer to negotiate an extension of time to file the Defence. However, this extension must be agreed upon in writing to protect your business.
What is the difference between a Defence and a Counterclaim?
A Statement of Defence purely responds to the plaintiff’s allegations, denying liability. A Counterclaim is your business actively suing the plaintiff back for damages they caused you. Both are typically filed together in one document called a Statement of Defence and Counterclaim.
Do weekends count towards the 20 days?
Yes, the 20 days are calendar days, meaning weekends and holidays are included. However, if the 20th day falls on a weekend or a statutory holiday when the court is closed, the deadline automatically extends to the next business day.
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