In Newfoundland and Labrador, Small claim courts are the courts that hear civil actions where the claim is not more than $25,000 in value. They deal with civil actions—i.e. dispute between private parties, including individuals, corporations, partnerships, unincorporated associations, trade unions, etc.
The courts hear claims for damages or for debts, ranging from breach of contracts, unpaid municipal taxes, to torts. The courts can award damages to the claimant if their loss or injury is successful against the defendant. Thus, common cases before the small claim courts are often actions bordering on failure to perform paid services, failure to repay loans, and damages for injuries (particularly car accidents).
The contractual ones are often based on oral contracts between the parties for which the court usually has to determine what the actual terms of the contracts were.
Aside the above cases or other related cases, small claim courts will not hear other matters. Thus, the courts do not allow claims based on title to land, gifts in a will, malicious prosecution, false imprisonment, or defamation. Also, the court will not hear a claim wherethe limitation period on the claim has elapsed as contained in the Limitations Act or where the claim is against a judge, justice or public officer for anything done by him or her in the course of duty.
Furthermore, a plaintiff is only allowed to bring one claim to court at a time. A plaintiff who brings more than one claim is, however, allowed to decide which of the claims they would like to be heard and which they would like to abandon. This is done in writing and signed by the plaintiff. Should a plaintiff decide this, they become unable to recover for the other claims later in a separate action. In the proceeding, where there is a counterclaim which the court cannot hear, the party counter-claiming can transfer the claim to the Supreme Court, Trial Division.
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