Someone is suing you.
What are your options?

By Jonathan Kleiman, Barrister & Solicitor · Published June 2026

Getting served with a Plaintiff's Claim is a jolt. An envelope arrives, or someone hands you a court document, and suddenly your name is on a lawsuit. The instinct is either to panic or to shove it in a drawer and hope it goes away. Take a breath — neither reaction helps, and over the years I have watched both turn a manageable problem into an expensive one.

Here is the reassuring part: being sued in Small Claims Court does not mean you have lost, and it does not mean you owe what they say you owe. It means someone has asked the court to decide. You have the right to dispute the claim, to settle it, to pay part of it, and even to sue them back — and the court is genuinely set up for ordinary people to do all of that without a lawyer. The whole point of Small Claims Court is to be accessible.

The urgent part is the calendar. Once you are served, you have 20 days to file a Defence. That is a hard deadline, and it is shorter than most people expect. Below I walk through exactly what you have been served with, every option on the table, the common situations I see, and the mistakes that cost defendants their case — so you can decide what to do while you still have all your choices.

Understanding what you've been served with

The document at the centre of all this is a Plaintiff's Claim (Form 7A). It is the lawsuit. It names the person or company suing you (the plaintiff), names you (the defendant), states how much money they want and why, and tells the court what they say you did — an unpaid invoice, a broken contract, damage to property, an unpaid loan, and so on.

Read it as a story the other side is telling. It is their version, written to win, and it does not become true just because it is on a court form. Your job is to figure out which parts you agree with, which parts you dispute, and what you can prove.

The moment that matters is service — when the claim is properly delivered to you. That is when your 20-day clock starts. In Ontario, Small Claims claims can be served personally, by mail, by courier, and in some cases other ways, and the date you were served determines your deadline to defend. The dollar figure also tells you something: Small Claims Court handles claims up to $50,000, not counting interest and costs. If you have been served, the amount they are after is somewhere inside that range.

One thing worth knowing: a Plaintiff's Claim is only the first step in a longer procedure. If you want to see the road ahead, I lay it out in what happens after a statement of claim in Ontario.

From my experience

From my experience, defendants make one of two opposite mistakes, and both come from the same place — fear.

The first group panics. They assume being sued means they are going to lose, maybe lose their home, maybe get a record. So they call the plaintiff in a rush and admit things, or they fire off an angry email, or they agree to pay an inflated number just to make the fear stop. I have had clients hand the other side a written admission in the first 48 hours that I then had to spend weeks working around.

The second group freezes. The claim is stressful, so they don't open it. They tell themselves they will deal with it next week, and next week the 20 days are gone, the plaintiff has them noted in default, and a judgment is being signed against them for the full amount — with no one ever hearing their side. By the time they call me, the easy fixes are gone and we are bringing a motion to undo a judgment that never had to exist.

The healthy middle is simple: treat the claim as a deadline to manage, not a catastrophe to dread. Note the 20 days. Gather your side calmly. Decide whether to defend, settle, or do both. You have more control than it feels like in the first hour.

What the law generally says

The rules that govern all of this are the Rules of the Small Claims Court (O. Reg. 258/98). A few of them shape every option you have.

The 20-day deadline. Under rule 9.01, a defendant served with a Plaintiff's Claim has 20 days to file a Defence in Form 9A. That is a flat 20 days — not 40, not 60. (Those longer numbers come from the Superior Court's Rule 18 and do not apply in Small Claims Court; I see this confused constantly.) If you were served outside Ontario the time can be different, but for a claim served inside the province, plan on 20 days, full stop. Because that window is so tight, I tell people to pin down their exact deadline first — you can do that in seconds with the Ontario Small Claims Court defence deadline calculator.

What default means. If you do not defend in time, the plaintiff can ask the court to note you in default and obtain a default judgment against you. That judgment is real and enforceable — the plaintiff can then garnish wages, garnish a bank account, or register a writ against your property to collect.

Your rights once you respond. File on time and the law gives you a full set of options: the right to defend (dispute the claim), the right to admit and propose terms of payment, the right to counterclaim by bringing a Defendant's Claim, and the right to raise legal defences like the wrong party or a missed limitation period. Filing the Defence is what keeps all of those alive.

Does filing a Defence mean I'm admitting nothing?

Correct — filing a Defence does not admit the claim; it does the opposite. A Defence is your formal statement that you dispute some or all of what is claimed, and it stops the plaintiff from getting a quick default judgment. You can dispute everything, or admit part and dispute the rest. Filing it preserves every option you have. Not filing it forfeits them.

Your options, laid out

When someone is suing you in Small Claims Court, you essentially have six paths. They are not all mutually exclusive — you can, for example, file a Defence and a counterclaim together, or admit part and dispute part.

Option 1 — Pay or settle

If you owe the money and have no real dispute, paying or settling is often the cheapest, fastest way to end it. You can pay the claim, or negotiate a discount or a payment plan and put it in writing. A signed settlement ends the lawsuit and protects you from a judgment on your record. More on this below.

Option 2 — Dispute it and file a Defence

If you genuinely dispute the claim — you don't owe it, the work was fine, the amount is wrong, the goods were defective — you defend. You file a Defence (Form 9A) within 20 days setting out your side, and the case proceeds toward a settlement conference. This is the core of defending a Small Claims claim.

Option 3 — Admit part and propose payment terms

Very common, and very practical. If you accept part of the claim but dispute the rest, you can file a Defence on the disputed portion and file a Proposal of Terms of Payment (Form 9B) for the part you accept — proposing how and when you will pay it. You are not stuck choosing between paying everything or fighting everything.

Option 4 — File a Defendant's Claim (counterclaim)

If the plaintiff also owes you money or caused you a loss, you can bring a Defendant's Claim — Small Claims Court's counterclaim. You can claim against the plaintiff, or bring in another party who is really responsible. There is a filing fee, and time limits apply, so you cannot sit on it. A counterclaim flips the dynamic: now the other side has exposure too.

Option 5 — Challenge jurisdiction or the limitation period

Sometimes the strongest defence is a legal one. If they sued the wrong party — the contract was with your corporation, not you personally — that goes in your Defence. If the claim is too old, a missed limitation period under the Limitations Act, 2002 may be a complete limitations defence (the general rule is two years from discovery, with a 15-year ultimate limit). These do not make the plaintiff automatically lose, but pleaded and proven, they can end the claim.

Option 6 — Do nothing (and why it's the worst option)

You can ignore the claim. You should not. Doing nothing lets the plaintiff note you in default and take a default judgment for the full amount, plus interest and costs, without you ever speaking. From there they can enforce against your pay and your bank account. Undoing a default judgment requires a motion, a good reason for the delay, and money — and it is not guaranteed. Of all six options, this is the only one that takes your choices away.

Common situations I see

Over the years, I have found that most defendants who walk through my door fit into a handful of patterns. Seeing yours described can make the right move obvious.

An unpaid invoice you dispute

A contractor or supplier sues for an invoice you never paid — because you say the work was incomplete, defective, or not what was agreed. This is a textbook defended claim. You file a Defence, gather the agreement and your evidence of the problem, and you may well have a counterclaim for the cost to fix the work.

A contractor-and-customer dispute

You did the work; the customer refuses to pay and is now suing you claiming the job was deficient. Or it is reversed and you are the customer being sued for a balance you withheld on purpose. Either way, your photos, quotes, change requests, and texts decide it. These cases turn on documentation, not on who is louder.

You think the amount is wrong

You accept you owe something, but the number is inflated — they have padded it, double- counted, or added charges you never agreed to. Don't pay it to make it stop, and don't ignore it. Admit the fair amount (Form 9B), dispute the rest (Form 9A), and let the court sort the gap.

You were served but the claim is against the wrong person

The deal was with your company, but they named you personally. Or you share a name with the real debtor. Or you sold the business years ago. Being named is not the same as being liable — but you have to raise it in a Defence, on time, not assume the court will notice for you.

You actually owe it

Sometimes the honest answer is that the claim is right and you simply could not pay. That is not a dead end. You can propose a payment plan (Form 9B), negotiate a settlement for less than the full amount, and avoid the extra interest and costs that come with fighting a losing battle. Owing the money does not mean you have no moves — it means your best move is on the settlement side.

Step-by-step: how to respond to a Small Claims claim

Here is the sequence I walk clients through, in order, from the day they are served.

1. Read it carefully. Read the whole Plaintiff's Claim — who is suing, for how much, and the reasons given. Note anything that is simply wrong.
2. Note the deadline. Find your service date and count 20 days. Pin it down with the defence deadline calculator and put it in your calendar twice.
3. Gather your side. Pull the contract, invoices, emails, texts, photos, and payment records. Build the facts before you decide anything.
4. Decide: settle or defend (or both). Honestly assess whether you owe it, owe part of it, or dispute it — and whether a quick settlement beats a fight.
5. File on time. File your Defence (Form 9A), and a Proposal of Terms of Payment (Form 9B) if you accept part, within the 20 days. Pay the filing fee and keep proof of filing.
6. Prepare for the settlement conference. Once you have defended, the court will schedule a mandatory settlement conference. Organize your documents and think about a realistic resolution before you get there.

Important evidence to gather

Small Claims cases are won and lost on documents. Something I frequently explain to clients is that the judge was not there — your paper is your memory. Start a folder, digital or physical, and collect:

• Contracts and agreements — signed deals, quotes, estimates, terms, and any written scope of work.
• Invoices and statements — what was billed, what you actually agreed to, and any disputed line items.
• Emails and text messages — the running conversation usually shows what was promised, complained about, and agreed.
• Photos and video — for property damage, defective work, or the condition of goods, dated images are powerful.
• Payment records — e-transfers, cheques, receipts, bank statements proving what you already paid.
• Proof of who the right party is — incorporation records, the signed contract showing the company name, or anything establishing you are not personally liable.

Common mistakes to avoid

One mistake I often see is people defeating themselves before the case is even argued. Avoid these:

• Missing the 20-day deadline. The single most damaging error. Miss it and you risk a default judgment for the full amount.
• Ignoring the claim. Hoping it disappears guarantees the worst outcome. It does not go away; it gets worse.
• Admitting things in writing carelessly. A panicked email or text to the plaintiff can become evidence against you. Be measured in what you put in writing before you have a plan.
• Not filing a counterclaim you actually have. If they owe you too, failing to bring a Defendant's Claim leaves leverage and money on the table.
• Defending a claim you actually owe out of spite. Fighting purely to make a point, when you owe the money, just adds interest, costs, and a likely loss. Pick your battles on the merits.

What happens in court

Once you file a Defence, the case does not jump straight to trial. In a defended action, a settlement conference is mandatory under rule 13, and it comes first. Both sides meet with a deputy judge in an informal session — often virtual — where the judge reviews the case, gives a frank read on the likely outcome, and tries to help you settle. Nothing said there can be used against you at trial, and it is not the trial judge. A large share of cases end here. For what to expect and how to prepare, read my guide to the settlement conference in Small Claims Court.

If the case does not settle, it is set down for trial, where a deputy judge hears the evidence and decides. Trials are usually a single day, and the rules of evidence are relaxed compared to the Superior Court — but you still have to prove your side with documents and testimony.

And there is a real cost risk if you defend and lose. Small Claims costs are limited: the winning side's legal-fee award is generally capped at 15% of the amount claimed under rule 19.04, unless the court penalizes unreasonable behaviour, and recoverable disbursements (filing and service fees) are added on top. So losing can mean the judgment, plus interest, plus a capped costs award against you. It is worth knowing that number before you commit to a fight — you can estimate it with the Small Claims Court cost award calculator.

Settlement considerations

In many cases, the smartest defence is a good settlement. Litigation is slow and stressful, and even a strong defence carries risk and cost. Here is how I think about it with clients.

Respond to the underlying demand. Often a claim arrives after a demand letter you ignored or fumbled. It is not too late to engage. A measured response — even now — can reopen negotiation. If you are dealing with the demand alongside the claim, my guide on how to respond to a demand letter in Ontario walks through how to do it without hurting yourself.

Negotiate a payment plan. If the issue is cash flow rather than liability, most plaintiffs would rather have a realistic instalment plan than chase a judgment for years. A Proposal of Terms of Payment (Form 9B) formalizes it; a private written agreement can too.

Know when settling beats fighting. Run the math. Weigh what you might owe against the time, stress, and cost-of-losing exposure of a defended trial. If the realistic settlement number is close to what a loss would cost — and faster and more certain — settling usually wins. I dig into that fight-versus-settle calculation in is Small Claims Court worth it in Ontario, and the logic runs the same whether you are suing or being sued.

Key takeaways

• You have a flat 20 days to file a Defence. Under rule 9.01, the clock starts when you are served — confirm your exact date and do not let it run out.
• Doing nothing is the worst option. Ignore the claim and the plaintiff can get a default judgment and enforce it against your wages, bank account, and property.
• You have real choices. Pay or settle, defend, admit part and propose payment (Form 9B), counterclaim, or raise a legal defence — often in combination.
• Documents win. Contracts, invoices, emails, texts, photos, and payment records decide most Small Claims cases — gather them early.
• Settling is often the smart defence. Weigh a realistic settlement against the cost of losing, including the 15% costs cap, before you commit to a fight.

Frequently asked questions

Someone is suing me in Small Claims Court — how long do I have to respond?

You have 20 days after you are served with the Plaintiff's Claim to file a Defence in Form 9A. This is a flat 20 days under rule 9.01 of the Rules of the Small Claims Court (O. Reg. 258/98) — it is not 40 or 60 days, which is a Superior Court timeline and does not apply here. The clock runs from the date you were served, so do not lose days waiting to deal with it. If you were served outside Ontario the time can differ, but inside the province the deadline is 20 days.

What happens if I ignore the claim or do nothing?

Doing nothing is the worst option. If you do not file a Defence within 20 days, the plaintiff can ask the court to note you in default, and then obtain a default judgment against you — often for the full amount claimed, plus interest and costs, without you ever telling your side. A default judgment is a real, enforceable court order: the plaintiff can garnish your wages or bank account and register a writ against your property. Setting a default judgment aside later is possible but takes a motion, a good reason for missing the deadline, and money. It is far easier to simply respond on time.

What is a default judgment in Small Claims Court?

A default judgment is a judgment the plaintiff gets because you failed to defend the claim in time. Once you are noted in default, the court can sign judgment against you for the amount claimed (or assess damages), plus pre-judgment interest and costs, without a trial and without hearing from you. From that point you are a judgment debtor: the plaintiff can enforce against your income and assets. The only way out is to bring a motion to set the default judgment aside, which the court may grant if you moved promptly and have a defence worth hearing — but that is an uphill, avoidable fight.

Can I settle instead of going to court?

Yes, and you can settle at any stage — before you file anything, after you file a Defence, at the settlement conference, or even on the courthouse steps. Many claims resolve through a lump sum, a discount, or a payment plan, and a written settlement ends the lawsuit. If you admit you owe all or part of the money, you can file a Proposal of Terms of Payment (Form 9B) setting out how and when you will pay. Settling early usually costs you less than fighting, protects your credit, and avoids the cost risk of losing at trial. Get any deal in writing before you pay.

Can I counterclaim or sue them back?

Often, yes. If the person suing you also owes you money or caused you a loss out of the same situation, you can bring a Defendant's Claim — Small Claims Court's version of a counterclaim — within the same case. You can also use it to bring in another party who is really responsible. There is a filing fee, and time limits apply (including the general two-year limitation period for your own claim), so you cannot sit on it. A counterclaim can turn a case where you are purely defending into one where the other side has its own exposure, which changes the settlement dynamic.

What if I only owe part of the amount they are claiming?

This is extremely common, and you have a clean way to handle it. You can admit the part you genuinely owe and dispute the rest. Practically, that means filing a Defence (Form 9A) that disputes the disputed portion, and you can file a Proposal of Terms of Payment (Form 9B) for the part you accept — proposing how and when you will pay it. You are not forced to either pay everything or fight everything. Admitting a fair number while disputing an inflated one is often the fastest, cheapest path to resolving the whole claim.

What if they sued the wrong person, or the claim is too old?

Both are real defences. If you are not the right party — the contract was with your company, not you personally, or they simply named the wrong person — you raise that in your Defence, and the claim against you may fail. If the claim is stale, the Limitations Act, 2002 generally requires a lawsuit to be started within two years of when the problem was discovered (with a 15-year ultimate limit). A missed limitation period may be a complete limitations defence — it does not mean the plaintiff automatically loses, but it can end the claim if you plead and prove it. Both points should be raised in your Defence, not saved for later.

Do I need a lawyer to defend a Small Claims Court claim?

No — Small Claims Court is built for self-represented people, and you are allowed to defend yourself or use a licensed paralegal. Whether you should get help depends on the stakes. For a modest claim with clear facts, many people defend on their own. For a larger claim near the $50,000 limit, a claim with a counterclaim, contested facts, or a plaintiff who has a lawyer, advice usually pays for itself — especially early, when the right Defence and a smart settlement position are still on the table. A short consultation can tell you whether you even need ongoing representation.

What does it cost to defend — and what if I lose?

Filing a Defence costs a modest court fee, and you can defend yourself to keep costs down. The bigger number is your cost exposure if you lose. Small Claims costs are limited: a represented winning party's legal-fee award is generally capped at 15% of the amount claimed under rule 19.04, unless the court penalizes unreasonable behaviour, and recoverable disbursements (filing and service fees) are added on top. So a defended-and-lost case can mean the judgment plus interest plus a capped costs award. You can estimate that exposure with the cost award calculator before you decide to fight.

What happens at the settlement conference?

In a defended Small Claims action, a settlement conference is mandatory before trial under rule 13. Both sides meet with a deputy judge in an informal session — usually virtual — where the judge reviews the case, gives a candid read on the likely outcome, and tries to broker a resolution. Nothing said there can be used against you at trial, and it is not the trial judge. For a defendant it is a genuine opportunity: many claims settle here once a judge tells the plaintiff their case has problems, or tells you yours does. Show up organized, with your documents and a realistic number in mind.

Final thoughts

Being sued is alarming, but it is a process with rules — and the rules give you room to respond. The defendants who do well are not the ones with the best luck; they are the ones who opened the envelope, found their deadline, gathered their side, and made a clear-eyed choice between defending and settling while all the options were still open. The ones who struggle are almost always the ones who waited.

So if you have just been served, do the calm version of the next 24 hours: read the claim, count your 20 days, and start your evidence folder. Then decide — and if the stakes are high or the case is messy, get advice early, while a good Defence and a smart settlement are both still on the table.

Talk to a Toronto Small Claims defence lawyer

If someone is suing you and the 20-day clock is running, a short conversation can map your real options — defend, settle, or counterclaim — and tell you honestly which one makes sense. Learn more about defending a Small Claims Court claim in Toronto, call 416-554-1639, or book a free consultation.