"What happens if I lose — what do I actually owe?" is one of the most practical questions in any Small Claims Court case, for plaintiffs and defendants alike. The good news is that Ontario's rules don't leave this open-ended: there's a specific statutory structure behind it, built around a percentage cap rather than an unpredictable number.
The statutory cap on representation costs
Under section 29 of the Courts of Justice Act, an award of costs in Small Claims Court — other than disbursements — is generally capped at 15% of the amount claimed or the value of the property sought, unless the court considers a higher amount necessary in the interests of justice. This cap is a ceiling, not an entitlement — a judge still decides what amount is actually reasonable in the specific case, and that's routinely less than the maximum. See costs and interest for how this fits into the broader court process.
Disbursements sit outside the cap
Separately from the 15% representation-cost cap, a successful party can generally recover reasonable disbursements from the other side — things like the cost of serving documents, and other direct out-of-pocket expenses connected to the case. These are assessed separately, under their own rules, rather than counting toward the 15% figure.
What a self-represented winner can recover instead
A party who represented themselves — without a lawyer, paralegal, or student-at-law — generally can't claim the same representation-fee costs someone with professional representation could. Instead, a self-represented party may be awarded a separate, smaller amount for inconvenience and expense. The exact current amount available for this was affected by the Rules of the Small Claims Court amendments that came into force June 1, 2025, so confirm the current figure rather than relying on an older number — see self-represented litigant tips for the broader picture of representing yourself.
How a formal offer to settle can change the number
Costs can move above the usual expectations in certain situations — for example, where a party unreasonably complicated or prolonged the case, or where a formal offer to settle wasn't beaten at trial. This is part of why a genuine, properly made settlement offer can carry real weight even if the other side doesn't accept it — see our settlement offer calculator for how to weigh an offer against the alternative of proceeding to trial.
Why this matters before you decide how to proceed
Understanding the realistic range of costs — rather than either assuming there's no downside to losing, or fearing an unlimited one — helps with a clear-eyed decision at every stage: whether to settle, whether to hire representation, and how hard to contest a specific issue. See the court fee calculator for the separate question of filing fees, which apply regardless of how the case turns out.
Frequently asked questions
Is there a cap on how much a losing party pays in costs?
Yes — under section 29 of the Courts of Justice Act, representation costs (costs other than disbursements) are generally capped at 15% of the amount claimed, except where the court considers a higher amount necessary in the interests of justice.
Does the 15% cap include disbursements like service fees?
No — reasonable disbursements, such as the cost of serving documents, are generally recoverable separately from the 15% cap on representation costs.
What if I represented myself and won — can I still get costs?
A self-represented party generally can't claim the same representation-fee costs a lawyer or paralegal could, but may be awarded a separate, smaller amount for inconvenience and expense instead.
Can costs go higher than the usual cap?
In limited circumstances, yes — for example, where a party unreasonably complicated or prolonged the case, or where a formal offer to settle wasn't beaten at trial. Confirm the current rule before assuming either outcome applies to your situation.