To formally start a commercial lawsuit in the Ontario Superior Court of Justice, you must issue a Statement of Claim. The mandatory provincial filing fee is exactly $243 CAD, but hiring a corporate law firm to draft a legally sound claim generally requires a retainer of $5,000 to $10,000+.
When a Business-to-Business (B2B) relationship breaks down, informal negotiations and demand letters sometimes fail to resolve the issue. 🚨 Whether a supplier breached a major contract, or a former executive violated their non-compete clause, taking the matter to court is often the only way to recover your financial losses. In Ontario, civil litigation for amounts over $50,000 is initiated by issuing a formal legal document known as a Statement of Claim, while disputes for up to $50,000 are handled through the simplified Small Claims Court.
This guide will explain the financial realities of starting a commercial lawsuit. Whether your business operates in Toronto, Ottawa, Mississauga, or anywhere else in Ontario, the Superior Court of Justice applies standard provincial fees, though your overall costs will depend heavily on the complexity of your dispute and the hourly rates of your legal team.
Step-by-Step Process in Ontario
You cannot simply write a letter to a judge asking for money. 📍 A Statement of Claim is a highly technical legal pleading governed by the Ontario Rules of Civil Procedure. Here is how your lawyer will navigate the issuance process:
Step 1: Drafting the Statement of Claim
First, your litigation lawyer must draft the document. The claim must explicitly state the parties involved, the total amount of money you are suing for, and the specific legal grounds for the lawsuit (e.g., breach of contract, negligence, or fraud). It must also lay out a clear timeline of the material facts without including unnecessary evidence. Drafting a complex commercial claim can take a law firm several days of intensive work.
Step 2: Issuing the Claim at the Courthouse
Once you approve the draft, your lawyer will file the document with the court registrar. 📄 Today, most claims are issued electronically through the province’s online civil claims portal. The court clerk reviews the formatting, assigns a unique Court File Number, dates it, and stamps it with the official seal of the Superior Court of Justice. At this exact moment, the lawsuit has officially begun.
Step 3: Serving the Defendant
The court does not notify the defendant for you. By law, you must serve the issued Statement of Claim to the opposing business within six months of issuance. In commercial disputes, this usually involves hiring a professional process server to physically hand the document to the registered director of the opposing corporation, or leaving it at their registered head office address.
Step 4: Waiting for the Statement of Defence
Once served, the clock starts ticking. ⚔ If the defendant is located in Ontario, they have exactly 20 days to file a Statement of Defence. If they file a “Notice of Intent to Defend,” they are granted an additional 10 days to prepare their response. If they completely ignore the claim, your lawyer can file for a default judgment to automatically win the case.
How Much Does it Cost in Ontario?
Starting a lawsuit requires both government administrative fees and significant professional legal fees. 💵 As of 2026, here is a breakdown of what a corporate plaintiff can expect to pay in CAD just to get the lawsuit started:
- Superior Court Filing Fee: The Ontario government charges exactly $243 CAD under O. Reg. 293/92 to officially issue a standard Statement of Claim (with scheduled CPI-indexing postponed to 2027 under O. Reg. 395/25).
- Corporate Lawyer Drafting Fees: Having a skilled commercial litigator review your contracts, formulate a legal strategy, and draft the claim typically costs between $2,500 and $7,500+ CAD, depending on the complexity of the dispute.
- Litigation Retainer: Law firms generally require a cash retainer upfront before starting litigation. For a Superior Court business dispute, expect to deposit $10,000 to $20,000+ CAD into the lawyer’s trust account.
- Process Server Fees: Hiring a professional to formally serve the documents to the defendant typically costs between $100 and $250 CAD.
| Expense Type | Estimated Cost (CAD) | Who Do You Pay? |
|---|---|---|
| Issuance Fee | $243 | Ontario Minister of Finance |
| Process Server | $100 – $250 | Private Serving Agency |
| Lawyer Retainer | $10,000+ | Your Law Firm (Trust Account) |
How Long Does the Process Take?
The administrative act of issuing the claim is fast, but preparation takes time. ⏳ Gathering the necessary emails, invoices, and contracts so your lawyer can draft a comprehensive Statement of Claim usually takes 2 to 4 weeks. Once filed electronically, the court issues the claim within a few days. Serving the defendant usually takes another week. However, actually resolving the lawsuit and going to trial in the Ontario backlogged court system generally takes 2 to 4 years.
Frequently Asked Questions (FAQ)
Can I add my legal fees to the amount I am suing for?
Yes. In your Statement of Claim, your lawyer will always include a request for “costs.” In Ontario, the general rule is that the losing party must pay a portion (usually 50% to 60%) of the winning party’s legal fees, though the judge has the final say.
What happens if the defendant avoids the process server?
If the opposing business owner is hiding or evading service, your lawyer can file a motion for “Substituted Service.” A judge can then grant permission to serve the claim via email, regular mail, or by serving their corporate accountant instead.
Do I have to sue in the city where the defendant lives?
Not necessarily. You can generally issue the claim in the Ontario municipality where the breach of contract occurred, or where your business is located. However, the defendant can file a motion to move the venue if they believe it is highly inconvenient or unfair.
Can I write the Statement of Claim myself to save money?
If your business is a registered corporation, Ontario law generally requires you to be represented by a licensed lawyer in the Superior Court of Justice. You cannot legally represent a corporation yourself without special permission from a judge.
Leave a Reply