Commercial
Dispute Lawyer.
Helping Toronto businesses resolve commercial disputes through demand letters, negotiation, mediation, and Small Claims Court claims up to $50,000. Superior Court matters are referred to litigation counsel.
· Reviewed by Jonathan Kleiman, J.D.
Ontario Bar
250+ reviews
consultation
What is a commercial dispute?
A commercial dispute is any disagreement that comes out of doing business: a customer who won't pay, a supplier who didn't deliver, a partner who walked off with the client list, a landlord and tenant fighting over the lease. Most never reach a courtroom. They're settled with a demand letter, a negotiation, or a mediation.
Jonathan is a Toronto business lawyer who helps businesses work through these disputes, from the first demand to a Small Claims Court claim for up to $50,000. He doesn't take Superior Court matters, and he'll tell you early if yours is headed there.
Types of commercial disputes
Contract disputes
Contract disputes are the most common commercial dispute. They arise when one party fails to perform, the parties disagree about what a term means, or one side ends the agreement without justification. A breach of contract claim usually seeks damages for what the breach cost you.
Shareholder and partnership disputes
Shareholder disputesare disagreements between the owners of a corporation: deadlock, exclusion from management, fights over a buyout. Partnership disputes raise the same questions of control, compensation and exit rights. Many are settled through negotiation or mediation. A formal oppression remedy application is brought in the Superior Court.
Debt collection
When invoices go unpaid or loans aren't repaid, a demand letter often gets the money moving. If it doesn't,debt recovery means a Small Claims Court claim and, after judgment, enforcement through garnishment, seizure, and an examination of the debtor.
Commercial landlord-tenant disputes
Commercial lease disputes come from lease breaches, rent arrears, and disagreements over maintenance and repair obligations. Unlike residential tenancies, they're resolved in the courts rather than at a tribunal, and claims up to $50,000 can go to Small Claims Court.
Construction disputes
Disputes between property owners andcontractorsinvolve deficient workmanship, cost overruns, and delays. These disputes often proceed throughSmall Claims Courtfor claims up to $50,000.
Non-compete and trade secret disputes
Valid restrictive covenants, like a sale-of-business non-compete or a non-solicitation clause, can be enforced, and overly broad ones can be challenged. Stopping a breach in its tracks usually takes an injunction from the Superior Court, which Jonathan doesn't handle. A firm demand letter and a negotiated undertaking often get the same result faster. (Most non-competes imposed on ordinary employees have been void in Ontario since October 25, 2021, with narrow exceptions for sale-of-business and executive roles.)
How a commercial dispute usually unfolds
Settlement can happen at any stage, but most disputes follow the same path:
- Assessment: reading the contract, the correspondence and the numbers to work out what each side can actually prove
- Demand letter: a formal letter setting out the claim and a deadline to pay or fix the problem
- Negotiation or mediation: direct talks, or a neutral mediator helping both sides reach a deal
- Small Claims Court claim: if the dispute doesn't settle and it's worth $50,000 or less, a Plaintiff's Claim starts the case, and the other side has 20 days after service to file a defence
- Settlement conference: a mandatory meeting with a judge in defended Small Claims cases, where many disputes settle
- Trial: if nothing settles, a judge hears the evidence and decides
Facing a commercial dispute?
Free 30-minute consultation. No fee, no obligation.
Small Claims Court vs Superior Court
In Ontario, claims for up to $50,000 (excluding interest and costs) are heard in Small Claims Court. The process is faster, less formal, and more cost-effective. Claims over $50,000 have to be started in the Superior Court, which has more procedural steps but can grant broader remedies, including injunctions and specific performance. For a full comparison, see the guide to Small Claims Court vs. Superior Court.
Jonathan doesn't take Superior Court matters. For a larger claim, he can assess it at the free consultation, handle the demand and negotiation, explain whether waiving the amount over $50,000 to stay in Small Claims Court makes sense, and refer the case to litigation counsel.
Alternative dispute resolution
Not every commercial dispute needs a judge. In mediation, a neutral third party helps the two sides negotiate a settlement, and it resolves a large share of civil cases. Arbitration, where a private adjudicator makes a binding decision, is another option, especially when the contract has an arbitration clause. Jonathan represents clients in both mediation and arbitration when a faster private process makes more sense than a public trial.
Services
- Dispute assessment and demand letters: work out what the dispute is worth and try to resolve it before court
- Settlement negotiation: resolving disputes without the cost and delay of a trial
- Mediation and arbitration representation: advocacy in out-of-court proceedings
- Small Claims Court representation: claims up to $50,000, for plaintiffs and defendants
- Judgment enforcement: garnishment, writs of seizure, and examination hearings after a Small Claims judgment
- Claims over $50,000: assessment, demand and negotiation, and a referral if the case has to go to Superior Court
Call 416-554-1639 orbook a free consultation.
FAQs.
Common questions about commercial disputes in Ontario.
What counts as a commercial dispute?
Any disagreement that comes out of doing business: a broken contract, an unpaid invoice or loan, a falling-out between partners or shareholders, a commercial lease fight, or a contractor who didn't finish the job. Most are resolved through a demand letter, negotiation or mediation. The ones that aren't end up in court or arbitration.
Do you take commercial disputes to court?
Yes, in Small Claims Court, which handles claims up to $50,000. Jonathan doesn't take Superior Court matters. If your claim is larger, he can assess it, handle the demand and negotiation, explain whether waiving the excess to stay in Small Claims Court makes sense, and refer you to litigation counsel.
How long does a commercial dispute take to resolve?
It depends on how far it goes. A demand letter can settle a dispute within weeks. Small Claims Court matters typically resolve in 6 to 12 months. Superior Court actions can take 2 to 3 years to reach trial. Many cases settle before trial through negotiation or mediation.
How much does it cost to resolve a commercial dispute?
Costs depend on how far the dispute goes. A demand letter and negotiation cost far less than a lawsuit, and Small Claims Court is the most affordable court option, with some work offered at flat fees. Superior Court litigation usually costs far more. You'll get an honest read on costs and prospects at the free consultation.
Should I settle or go to court?
Most commercial disputes settle, and usually for good reason: settlement saves time, money and uncertainty. The strongest negotiating position comes from being ready to go to court if talks fail. In Small Claims Court, a settlement conference with a judge is built into the process, so there's a structured chance to settle before trial.
What if I need an injunction?
An injunction is a court order requiring someone to do something or stop doing something, like using your customer list or moving assets out of reach. Small Claims Court can't grant one. Injunctions come from the Superior Court, which Jonathan doesn't handle, so if you need urgent relief he'll tell you at the outset and refer you to litigation counsel.
Facing a business dispute?
Jonathan Kleiman helps Toronto businesses with commercial disputes, from demand letters to Small Claims Court. Free 30-minute consultation.