Learn About Litigation: Part 1
If you have been provided with a Statement of Claim with your name or the name of your business on the first page, you need to address it as soon as possible. Once you or your business have been named in a Statement of Claim and served (provided) with a copy, the clock starts ticking on your time to deliver a response.
What is a Statement of Claim?
A Statement of Claim is a type of originating process in Ontario. It is used to start a civil lawsuit in the Ontario Superior Court of Justice (except in Small Claims Court, where a similar document, called a "Plaintiff's Claim," is used).
A Statement of Claim is one of the most important parts of a lawsuit because it sets the parameters for a proceeding. In the Statement of Claim, the Plaintiff outlines the claim and the relief that the court is being asked to provide, along with the material facts that the Plaintiff relies on to support the causes of action (legal claims) alleged, as well as the Plaintiff's claim for damages (money) or other relief sought.
What Should You Do if You've Been Served with a Statement of Claim?
If you have been served with a Statement of Claim, the first thing you should do is contact a lawyer as soon as possible.
The Rules of Civil Procedure, RRO 1990, Reg 1994, which is a piece of legislation that governs the rules for most civil court proceedings in Ontario, include timelines for the steps that take place in litigation. One of these steps is the timing for delivering a response to a Statement of Claim, which is called a Statement of Defence.
A Statement of Claim in Ontario will include the following language on the first (or second) page:
IF YOU WISH TO DEFEND THIS PROCEEDING, you or an Ontario lawyer acting for you must prepare a statement of defence in Form 18A prescribed by the Rules of Civil Procedure, serve it on the plaintiff's lawyer, or, where the plaintiff does not have a lawyer, serve it on the plaintiff and file it, with proof of service in this court office, WITHIN TWENTY DAYS after this statement of claim is served on you, if you are served in Ontario.
While the language on the form for a Statement of Claim includes a twenty-day timeline for someone who is served in Ontario, you should seek the advice of a lawyer as soon as possible, and well before the twenty-day time-period expires.
What Happens if I Ignore a Statement of Claim?
It is important to speak to a lawyer and respond to a Statement of Claim as soon as possible after you are served.
A Statement of Claim does not go away if you ignore it. If you fail to respond to a Statement of Claim, you may be noted in default, which can result in the Plaintiff obtaining a default judgment against you for its claim for damages and other relief, all without your participation in the lawsuit.
The risk of ignoring a Statement of Claim is described in the Statement of Claim form in Ontario, which includes the following language on the first (or) second page:
IF YOU FAIL TO DEFEND THIS PROCEEDING, JUDGMENT MAY BE GIVEN AGAINST YOU IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF YOU WISH TO DEFEND THIS PROCEEDING BUT ARE UNABLE TO PAY LEGAL FEES, LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID OFFICE.
A lawyer can assist you with responding to a Statement of Claim with defence pleadings (documents), such as a Notice of Intent to Defend, if appropriate, and a Statement of Defence. These are formal court materials that have to be completed with particular requirements and in compliance with the Rules of Civil Procedure. You should not try to prepare these documents on your own, as they require a variety of legal considerations for their content and are unlikely to be appropriately addressed and adequately completed without a lawyer.
Conclusion
If you have been served with a Statement of Claim, seek legal advice and speak to a lawyer as soon as possible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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