Almost everyone heading into Ontario’s Small Claims Court or the Landlord and Tenant Board (LTB) asks the same question: “If I win, does the other side have to pay for my lawyer, my paralegal, and all my court costs?” The short answer is: usually not, not in full. Ontario law sets specific caps on cost recovery, and understanding those caps before you start a case makes for a much more realistic decision.
In Small Claims Court
In Small Claims Court, the costs a winning party can recover fall into two categories.
1. Representation fees. If you hired a lawyer or paralegal, the amount the court awards you toward that cost is, under section 29 of the Courts of Justice Act, generally capped at 15% of the amount you claimed. So in a $50,000 claim, the most you could recover toward representation costs is roughly $7,500 — even if your actual legal bill was higher.
2. Disbursements. These are separate from the 15% cap and include things like the filing fee, service of documents, and expert report fees. Unlike representation fees, disbursements fall outside the statutory cap and are recoverable in full, as long as you kept your receipts and records.
What if you represent yourself? You can’t claim a fee you never paid, but the court can still award something for your time and effort. For self-represented parties, this is typically capped around $500.
One important detail: offers to settle. If you make a written settlement offer before the hearing and the other side rejects it, but the final judgment is equal to or better than your offer, the court can double your cost award. As of June 2025, this rule was strengthened, and the cap for self-represented parties’ time was raised from $500 to $1,500. A reasonable settlement offer made early can have a real financial impact down the line.
As of October 1, 2025, the Small Claims Court monetary limit rose from $35,000 to $50,000, which naturally raises the ceiling on recoverable costs as well.
At the Landlord and Tenant Board (LTB)
Cost rules at the LTB are stricter than in Small Claims Court.
Filing fees. If you win your hearing, the adjudicator will typically order the other party to reimburse your filing fee — which runs about $48 to $53 depending on the form. Otherwise, this fee is non-refundable.
Representation fees. Contrary to what many people assume, simply winning at the LTB does not, on its own, get your legal fees reimbursed. Under LTB Guideline #3, Rule 27 of the Board’s Rules of Procedure, and section 204 of the Residential Tenancies Act, a cost order for representation fees is only made where the other party’s conduct is found to be “unreasonable” — not merely because they lost. Examples of unreasonable conduct include filing a frivolous or vexatious application, acting in bad faith, persisting with an irrelevant issue after being cautioned by the adjudicator, or requesting adjournments without good reason.
Even where such an order is made, the amount is capped: a maximum of $100 per hour, up to a total of $700 for the whole case. In other words, in the vast majority of LTB cases, the filing fee is the one thing you can reliably count on getting back.
Bottom Line: Winning Reduces Your Costs — It Doesn’t Erase Them
What surprises a lot of people is that Ontario’s justice system — in both Small Claims Court and the LTB — isn’t designed to make the winning party financially “whole.” The purpose of cost rules is to balance access to justice against discouraging unnecessary litigation, not to fully reimburse a winner’s personal legal expenses.
In short:
- Small Claims Court: representation fees up to 15% of the claim, disbursements recovered in full, and the possibility of doubled costs with a successful settlement offer.
- LTB: usually just the filing fee is recovered; representation fees are only awarded if the other party’s conduct was unreasonable, and even then capped at $700.
Before starting any case, it’s worth realistically weighing the likely cost of representation against how much of it you could actually recover. If you’re considering a Small Claims Court matter or an LTB application and want to know what costs apply to your specific situation, feel free to reach out to our office to have your case reviewed.
عادل زارعی
Paralegal (Ontario)
Iranian Lawyer (Iran)
This article is for general informational purposes only and is not a substitute for individual legal advice. For guidance on your specific situation, please contact Zarei Legal Services & Notary Public.
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