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How Does the New Civil Procedure affect Franchisees

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The new recommendations for change in the Ontario Civil procedure can be read here.

Here are some changes that are important to franchisees.

Small Claims

1. The monetary jurisdiction of the Small Claims Court should be increased to $25,000. The increase should be staged. The court's monetary jurisdiction should be increased immediately to $15,000 with a further increase to $25,000 within two years.

This will make it easier to contest supplier issues, because the small claims procedures do not require a lawyer.

Simplified Rules

2, The monetary jurisdiction of rule 76 should increase to $100,000 on a province-wide basis, to be implemented as soon as practicable.

3. Upon any increase to the monetary limit of rule 76, each party should be permitted to engage in up to two hours of discovery after giving due consideration to the cost of discovery in relation to the amounts or issues at stake.

4. The summary trial option should remain in place for all simplified procedure cases. It should, however, be amended to permit a brief opportunity for examination-in-chief or general statement of any party who has sworn an affidavit for the summary trial. I would allocate no more than 10 minutes for this statement or examination-in-chief, subject to an order of the pre-trial judge or master or the trial judge to extend this time.

This is a very important change because it brings a quick and affordable trial option for claims under $100,000.

Many section 6 or section 7 claims against the franchisor might be resolved using an action started under the simplified rules in a cost effective manner.

When you consider that often there are several parties to the franchise agreement, each with their own $100,000 limit, this change is very favourable for the litigant who cannot afford the costs of full blown discovery.

Related articles by ZemantaResolving Lawsuits Faster And More Affordably (newswire.ca)Ontario raises Small Claims Court limit (thestar.com)How To File A Lawsuit [Lawsuits] (consumerist.com)

Full post as published by Misleading Advertising Law on March 04, 2009 (boomark / email).