Does the Fast Paced Manner of the Small Claims Court Result In Judicial Mistakes?

Small Claims Court Cases Are Heard In a Summary Manner, Meaning Fast Paced, Which May Sometimes Result In Mistakes During the Effort to Find Truth and Provide Justice. If a Significant Error Occurs, Litigants May Need to Accept An Unfortunate Outcome or...


Understanding the Small Claims Court Role In Providing Access to Justice Including Adjudication Expectations

Expectations for Adjudication Within Cases Brought As Small Claims Court Proceedings In Ontario, the Small Claims Court monetary jurisdiction provides that each Plaintiff may be awarded up to $35,000 which is a significant sum to many people; and accordingly as a significant sum, and whereas the moral principle of the matter is often also a significant concern within the search for truth and justice, it is reasonable that litigants expect the processes of the courts, including the Small Claims Court, to perform in a manner that adheres to a quality level in the search for truth and justice.

It is quite reasonable that litigants expect a high quality for the adjudication of court proceedings, especially within a democratic society wherein the search for justice and truth includes the goal of ensuring the public respect for the administration of justice; however, it is said that the system is imperfect and is also without an expectation of perfection of itself.  In reference to reasonable expectations for operation of the Small Claims Court, the Divisional Court, when reviewing the case of Li v. Evangelista, 2019 ONSC 6881 on appeal from the Small Claims Court, said:


[15]  At the outset, it is important to emphasise that the role of an appeal court is not to enforce a standard of perfection but to intervene only in cases in which there is a risk of significant injustice. An appeal is not to permit re-argument of issues originally decided nor to determine how the judge sitting in appeal would have decided the case had it been presented differently. Rights of appeal are to correct serious errors and not to correct every blemish that might be detected in the original trial.

[16]  Intervention is justified only if there were significant errors committed by the court of first instance which render the verdict untenable. The standard of review is generally that outlined by the Supreme Court of Canada in Housen v. Nikolaisen, 2002 SCC 33 (CanLII), [2002] 2 SCR 235.  Findings of fact will only be disturbed if the evidence cannot reasonably support the findings.  Decisions on points of law are reviewed on a more robust standard which is to say that an appeal court will correct errors of law on a standard of correctness although it will still be necessary to demonstrate that the error is critical to the result.  When it comes to procedure, much latitude must be allowed to the trial judge and the matter must be considered in context.

[17]  The small claims court is a busy court which is designed to handle matters in a relatively informal and summary fashion.  The court plays a vital role in the administration of justice in the province by ensuring meaningful and cost-effective access for cases involving relatively modest claims for damages.  In order to meet its mandate, the processes and procedures in that court are relatively streamlined.  When it comes to the sufficiency of reasons, an appellate court must take this context into account.  See Massoudinia v. Volfson, 2013 ONCA 29 (CanLII), Maple Ridge Community Management Ltd. v. Peel Condominium Corp. No. 231, 2015 ONCA 520 (CanLII).  Similarly, the Deputy Judge must be given flexibility in adapting trial procedure to the circumstances he or she is faced with.  I so not intend to address every ground of appeal, but I will deal with those that appear most significant.

As was explained by the Divisional Court in the Li case provided above, and with cited reference to the Supreme Court decision in Housen, the factual findings of a lower court should be "disturbed", meaning altered or directed for a fresh Trial, only where the findings of the lower court were unreasonable.  Of course, what is "unreasonable" and what is imperfect may be distinctly different things and therefore a court decision may be based on a reasonable falsity with a judicial finding of truth differing from the actual truth. With this said, in Li, the Divisional Court did go on to explain that an appeal court should address errors in law where the error affects the outcome of the case.

Summary Comment

With the above said, litigants are often frustrated to learn that the judicial system requires a higher degree of accuracy when judges apply the law to facts rather than when when making factual findings; and accordingly, litigants may take the view that the Trial judge misunderstand the actual truth with the result being the application of law upon inaccurate facts with a resulting injustice.  As such, litigants should be aware that the justice system is designed to perform reasonably and that human imperfection of judges may lead to imperfect judicial decisions.

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