What Happens If You Ignore a Statement of Claim in Ontario?

Getting served with a Statement of Claim can be stressful. Whether it arrives at your door or is handed to you by a process server, your first instinct might be to set it aside and hope it goes away. But ignoring it is one of the worst things you can do. In Ontario, there are strict deadlines for responding, and missing them can lead to serious legal consequences, including a court order against you that you had no say in.

This post explains what a Statement of Claim is, what happens when you do not respond, and why it is so important to speak with a lawyer as soon as possible.

What Is a Statement of Claim?

A Statement of Claim is a formal legal document that starts a lawsuit against you in Ontario's civil court system. The person or business suing you is called the plaintiff, and you become the defendant once you are served with the claim.

The document sets out what the plaintiff is alleging and what they are asking the court to order, usually money damages or some other form of relief. Being served with a Statement of Claim does not mean the plaintiff has already won. It simply means they have started the process and you now have a chance to respond.

What Is the Deadline to Respond?

In Ontario, once you have been served with a Statement of Claim, you generally have 20 days to file a document called a Statement of Defence if the claim was served in Ontario. If you were served outside of Ontario but within Canada, the deadline may be longer. The exact deadline can depend on how and where you were served, so you should confirm this with a lawyer right away.

The 20-day clock starts from the day you are served, not the day you read the document or realized what it was. Missing this deadline, even by a day, can have serious consequences.

What Is Noting in Default?

If you do not file a Statement of Defence within the required time period, the plaintiff can ask the court to note you in default. This is a formal step in Ontario's civil procedure that signals to the court that the defendant has not responded.

Being noted in default does not automatically mean the case is over, but it does significantly limit your options. In many cases, once you are noted in default, you lose your right to participate in the lawsuit without first getting the default set aside, which requires a court motion and is not guaranteed to succeed.

What Is a Default Judgment?

After you have been noted in default, the plaintiff may apply for a default judgment. This is a court order that may be granted without you having any say in the matter. Depending on the nature of the claim, the court may grant judgment for the full amount the plaintiff is asking for, or it may require a short assessment of damages.

A default judgment can be used to enforce the debt against you. This may include things like garnishing your wages, freezing your bank account, or placing a lien on your property. These consequences can happen without you ever having an opportunity to present your side of the story.

Can a Default Judgment Be Reversed?

In some cases, it may be possible to have a default judgment set aside, but this is not straightforward. You would need to bring a motion before the court and show reasons why the default occurred and why there may be a valid defence to the claim. Courts in Ontario do have some discretion in these situations, but there is no guarantee that a motion to set aside default will succeed, particularly if significant time has passed or if the plaintiff has already begun enforcing the judgment.

The longer you wait, the harder it tends to become. Acting quickly gives you the best chance of being able to respond properly to the claim.

Why You Should Speak With a Lawyer Right Away

If you have received a Statement of Claim, you should speak with a lawyer as soon as possible, ideally before the deadline to respond has passed. A lawyer can review the claim, advise you on your options, and help you file a proper Statement of Defence if one is appropriate in your situation.

Even if you think the claim has no merit, or that you do not owe the money being claimed, ignoring the document will not make the case go away. The court process will continue with or without you. Getting legal advice early gives you the chance to protect your rights and put forward your side of the story.

Frequently Asked Questions

Q: What if I was served with a Statement of Claim but I do not think I owe anything?

You still need to respond within the deadline. If you believe the claim is wrong or exaggerated, the appropriate step is to file a Statement of Defence setting out your position. Ignoring the claim will not make it go away. A lawyer can help you understand whether you have a defence and how to present it properly.

Q: I missed the 20-day deadline. Is it too late to do anything?

It may not be too late, but you need to act quickly. Depending on where things stand, it may be possible to file a late Statement of Defence or bring a motion to set aside the default. The sooner you speak with a lawyer, the better your chances of being able to participate in the case.

Q: Can I respond to a Statement of Claim without a lawyer?

You can represent yourself in Ontario civil proceedings, but it is generally not recommended, especially if the claim involves a significant amount of money or complex legal issues. Civil litigation has specific rules and deadlines, and a lawyer can help you navigate the process and avoid costly mistakes.

Q: What if I was served with a claim for a Small Claims Court matter?

Small Claims Court in Ontario handles civil disputes involving amounts up to $50,000. The rules and timelines in Small Claims Court are somewhat different from Superior Court proceedings. If you have been served in a Small Claims matter, you should still speak with a lawyer to understand your options and the applicable deadlines.

Get Legal Advice Today

If you have received a Statement of Claim in Ontario and are not sure what to do, the team at DevLaws is here to help. We work with individuals and businesses across Ontario on civil litigation matters and can help you understand your rights and your options. Reach out to us today to schedule a consultation.

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DISCLAIMER

This article is provided for general information purposes only and does not constitute legal advice. It is not intended to create a lawyer-client relationship. Laws and regulations can change, and the information here may not reflect the most current developments. Every situation is different, and the information in this article may not apply to your specific circumstances. If you have questions about a reduction in your hours or any other employment matter in Ontario, you should consult a qualified lawyer for advice tailored to your situation. DevLaws does not guarantee any particular outcome or result.