Litigation

How BC law treats it

Where a dispute goes depends mainly on its value. The Civil Resolution Tribunal decides most small claims up to $5,000 under the Civil Resolution Tribunal Act, SBC 2012, c 25. Small Claims Court in the Provincial Court hears claims up to $35,000 under the Small Claims Act, RSBC 1996, c 430. The BC Supreme Court has general jurisdiction and hears larger claims, injunctions and most commercial disputes under the Supreme Court Civil Rules, BC Reg 168/2009. Appeals go to the Court of Appeal for British Columbia. A BC Supreme Court action starts with a notice of civil claim, which must be served on each defendant. A defendant served in BC generally has 21 days to file a response to civil claim and may add a counterclaim. The parties then exchange lists of documents, conduct examinations for discovery, and may bring chambers applications, including for summary judgment or summary trial. Most actions settle, often after mediation. Those that do not go to trial, and the losing party is usually ordered to pay part of the winner's legal costs under the tariff. The Limitation Act, SBC 2012, c 13 sets a basic two year period from discovery of the claim, so delay can end a claim before it starts. Parties may instead agree to arbitrate under the Arbitration Act, SBC 2020, c 2. A judgment is enforced through tools such as garnishment, registration against land under the Court Order Enforcement Act, RSBC 1996, c 78, and seizure and sale.

What it means for your business

Litigation is expensive, slow and public, but sometimes it is the only way to recover money, protect a business or stop a competitor. Knowing the forum, the deadlines and the realistic cost lets an owner decide early whether to sue, settle, mediate or arbitrate. Good records, prompt legal advice and preserving documents once a dispute arises often decide the outcome long before trial. Example: A Vancouver software company is owed $120,000 by a former client that disputes the work. It files a notice of civil claim in the BC Supreme Court within two years, and the case settles at mediation after examinations for discovery.

Risks and common mistakes

Waiting too long and missing the two year limitation period while negotiating. Filing in the wrong forum, or abandoning part of a claim to fit under a small claims limit without considering the trade off. Destroying or failing to preserve emails and documents once a dispute is likely. Ignoring a notice of civil claim and allowing default judgment to be taken. Underestimating cost exposure, including the risk of paying the other side's tariff costs.