Have you experienced a financial loss because someone breached a contract or acted negligently? Many people know they can bring a claim in Small Claims Court, but fewer understand the different types of damages the court may consider when assessing compensation. In Ontario, the Ontario Small Claims Court hears civil matters involving claims of up to $50,000, excluding interest and costs. While the process is intended to be accessible, determining what you may be legally entitled to recover requires an understanding of how damages are categorized. At its foundation, civil damages are meant to compensate the individual bringing forth the claim. The law seeks to restore a party, as much as possible, to the position they would have been in had the wrongdoing not occurred or had the agreement been properly fulfilled.

Types of Damages in the Small Claims Court

Compensatory (or actual) damages are the most common form of damages. These represent the measurable loss that flows directly from the wrongdoing. For example, in a contractual dispute, this may mean recovering the amount necessary to place you in the position you would have been in if the contract had been performed. In a negligence claim, it may involve restoring you to the position you would have occupied had the harm not occurred. Within this broader category, courts often distinguish between special (or pecuniary) damages and general (non-pecuniary) damages.

Special damages compensate for quantifiable financial losses. These are amounts that can be supported by documentation such as invoices, receipts, employment records, or repair estimates. Examples may include lost income, medical expenses, or property repair costs. Due to these damages being measurable, clear evidence is essential.

General damages, by contrast, relate to non-monetary losses. These may include pain and suffering, emotional distress, or loss of enjoyment of life. Although they are not capable of precise quantifiable calculation, a claimant must still provide sufficient evidence to justify an award. The court will assess what is fair and reasonable in these circumstances. In some cases, the court may also consider aggravated damages. These are awarded where the defendant’s conduct intensified the harm suffered. For example, if the manner in which a wrong was committed caused additional humiliation, anxiety, or distress, the court may increase the damages to reflect that added impact.

More rarely, punitive (or exemplary) damages may be awarded. These damages exist to as means of denouncing and deterring conduct that is especially malicious, vindictive, or particularly reprehensible.

There is also the concept of liquidated damages. These damages arise primarily in contractual disputes.  These are amounts that the parties agreed in advance would be payable if a breach occurred. Were properly drafted and reasonable in nature, courts may enforce these clauses as a pre-determined measure of compensation.

Regardless of the category, damages must be proven on a balance of probabilities. The claimant (or Plaintiff) bears the burden of demonstrating both the existence of the loss and its connection to the defendant’s actions. Courts will not award damages that are speculative or unsupported by evidence.

Understanding the distinctions between these types of damages can significantly affect how a claim is framed and presented. If you are considering bringing a matter before Small Claims Court, our firm can best assist you in determining what compensation may be available and how best to support your position.