Last Updated: August 23 2026
In a Small Claims Court case, is the set-off amount calculated from the $35,000 court limit or from the assessed amount in the claim?
DK Legal Practice can help you understand how set-off works when the court assesses amounts over $35,000 in Ontario’s Small Claims Court. In general, the $35,000 monetary jurisdiction limit applies to the net judgment the court awards, not to the assessed value used to calculate set-off. Where a set-off applies, the set-off is calculated from the assessed amount (for the counterclaim) rather than from the $35,000 limit, as reflected in 2146100 Ontario Ltd. v. 2052750 Ontario Inc., 2013 ONSC 2483. If you want, call (416) 906-6663 to review your claim and counterclaim numbers so your net award stays within the court limit.
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Does the Maximum Amount That Can Be Awarded In a Small Claims Court Case Become the Maximum Starting Point When Calculating a Set-Off?
If a Sum Is Assessed That Exceeds the Maximum Amount Allowed By the Small Claims Court, Any Set-Off Will Be taken From the Assessed Amount Rather Than Court Award Limit; However, the Total Amount Awarded Must Remain Within the Court Award Limit.
Note: Please contact DK Legal Practice by phone at: (416) 906-6663 to discuss any specific questions that you may have.
Understanding the Small Claims Court Jurisdiction to Award Judgment As Net Set-Off Despite An Above Limit Assessment
In the Small Claims Court, the amount that can be awarded as a Judgment is limited to $35,000, excluding legal costs or interest. This limit is separate from the amount that may be assessed. Furthermore, in cases where a set-off amount applies, the set-off is calculated from the assessed amount rather than from the award limit.
The Law
The case of 2146100 Ontario Ltd. v. 2052750 Ontario Inc., 2013 ONSC 2483, from when a limit of $25,000 applied to the Small Claims Court, confirms that the Small Claims Court may assess any sum and may apply from that sum, rather than from the court jurisdiction limit, a set-off sum when calculating a net Judgment award. Such principle was explicitly stated where it was said:
[17] In terms of the case at bar, the respondents expressly set out in their defendants' claim that they were owed over $42,000 from the appellants. They limited their ultimate recovery, however, to $25,000. Whether that limit is arrived at through set-off or abandonment of any sum over and above the monetary jurisdiction of the court is immaterial in my view: see Dunbar v. Helicon Properties Ltd., 2006 CanLII 25262 (ON SCDC), [2006] O.J. No. 2992, 2006 CarswellOnt 4580, 213 O.A.C. 296 (Div. Ct.).
[18] The respondents claimed a judgment of $25,000. They were awarded a judgment of $21,538.85. In my view, the process amounted to nothing more than the trial judge starting at $42,633 and making deductions for amounts owed to the plaintiff, to arrive at a net figure within the monetary jurisdiction of the court. This process is logically no different than assessing the value of a contract at $50,000, determining that $30,000 had been paid under the contract, leaving a balance owing of $20,000. There could be no doubt, in those circumstances, that the deputy judge had the jurisdiction to make a finding that the initial value of the contract was an amount in excess of the monetary limit of the court. But at the end of the day, it is the net judgment that matters. Here, the amount awarded was within the monetary jurisdiction of the Small Claims Court and did not exceed the amount claimed in the defendants' claim.
Within the 2146100 case, the Judge assessed slightly more than $42,000 on a counterclaim as brought against the Plaintiff. The Judge also assessed a sum just over $21,000 on the Plaintiff's Claim as owed by the Defendant. When determining the net Judgment award due, the Judge used the $42,000 assessed amount and applied the $21,000 set-off amount. Subsequently, upon Appeal, it was argued that the set-off should be calculated from the court jurisdiction limit rather than the assessed amount. The Divisional Court disagreed with the argument and upheld the Judgment from Trial.
Summary Comment
The Small Claims Court monetary jurisdiction limit applies to the amount which the court may award rather than the amount the court may assess. Furthermore, in cases where a set-off calculation is involved, the set-off is taken from the assessed sum rather than from the Small Claims Court limit.
NOTE: A considerable amount of inquiries featuring “lawyers near me” or “best lawyer in” frequently indicate an urgency for competent legal assistance rather than merely seeking a specific title. In Ontario, “licensed paralegals” fall under the regulation of the same Law Society that governs lawyers, granting them the authority to represent clients in certain litigation matters. Core functions of this role include advocacy, legal analysis, and procedural expertise. DK Legal Practice provides legal representation within its licensed parameters, focusing on strategic positioning, evidentiary preparation, and effective advocacy to attain timely and beneficial outcomes for clients.
