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ARTICLE · 14 SEPTEMBER 2020

The Potential High Cost Of A Small Claims Action

The recent decision of Justice Fred Ferguson, Mercure v Kaat Auto Sales, 2020 NBQB 39 (CanLII), ("Mercure v Kaat Auto Sales") is another reminder to parties to think carefully before filing a Small Claims action in New Brunswick.

CanadaLitigation, Mediation & Arbitration

The recent decision of Justice Fred Ferguson, Mercure v Kaat Auto Sales, 2020 NBQB 39 (CanLII), ("Mercure v Kaat Auto Sales") is another reminder to parties to think carefully before filing a Small Claims action in New Brunswick.

Background

In New Brunswick, a litigant can commence a Small Claim so long as the monetary amounts are under $20,000. The objective of Small Claims Court is to make accessing justice economical and user friendly. For example, the rules and procedure are somewhat relaxed as compared to higher levels of court. As was the case in Mercure v Kaat Auto Sales, often a party who is unsuccessful in Small Claims Court can simply appeal the decision. This is because the provisions of Section 20 of the Small Claims Act SNB 2012, c. 15, and associated regulations allow an appeal of the adjudicator's judgment by way of a trial de novo, which means that the proceeding is repeated as a second trial. The aggrieved party can simply request an

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