Business Sued at the CRT in BC: How to Respond to a Small Claims Dispute

A customer filed a claim against your business at the Civil Resolution Tribunal, or a contractor you hired is suing you for an unpaid invoice. The Dispute Notice is sitting in your inbox and the 14-day clock is running. For small business owners in BC, this is an unfamiliar process — and the rules for responding as a business have a few wrinkles that individuals do not face.

Confirm You Were Properly Named

Check whether the claim was filed against you personally, against your business entity, or both. This matters because:

• A sole proprietorship has no separate legal identity from you. A claim against "John Smith doing business as Smith Renovations" is a claim against you.
• An incorporated company (Ltd., Inc., Corp.) is a separate legal person. A claim against "Smith Renovations Ltd." is not automatically a claim against you personally — unless the applicant is also naming you as a director or guarantor.
• For a partnership, check whether the claim names the partnership, individual partners, or both. Each person or entity named as a respondent should make sure a response is filed for them.

If the applicant named the wrong entity (sued your corporation when the contract was with you personally, or vice versa), identify the issue in your response and explain why the named person or entity is incorrect. Do not assume the claim will be corrected without your participation.

Designate a Contact Person

The CRT requires businesses, corporations, partnerships, and strata corporations to identify a Contact Person — an owner, partner, director, or authorized employee who has authority to bind the entity. This person will manage the case through the CRT portal, participate in negotiation and facilitation, and make decisions on settlements.

For a sole proprietorship, that is you. For an incorporated company, choose a director or authorized employee who has authority to bind the entity. Make sure the person designated can actually commit the business to a settlement or payment plan — naming a junior employee who has to check with the owner before every decision slows the process and frustrates the case manager.

The Response Itself

The mechanics are the same as for any CRT Dispute Response — file online through civilresolutionbc.ca using the file number and access code, within 14 days of service (30 days if served outside BC). Online submission is free.

For customer disputes, common defence points include:

• The work or product was delivered as contracted (the specifications were met, even if the customer changed their expectations after the fact)
• The customer accepted the work and only raised complaints after the refund period
• The claimed amount exceeds the actual cost of remedying the issue

For contractor invoice disputes (you are the homeowner being sued), common defence points include:

• Work was not completed to the agreed standard or scope
• The contractor changed the scope without written authorization
• Defects were discovered after completion and the contractor refused to remedy them
• You already paid the amount owed (attach proof of payment)

In every case, keep the response factual and specific. Address each line item the applicant is claiming. Do not write an emotional narrative about how unreasonable the other side has been — save the detailed story for the evidence stage.

Provincial Court for Larger Claims

If the claim is between $5,001 and $35,000, it is in Provincial Court Small Claims rather than the CRT. The response is a Form 2 Reply, filed at the court registry with a $26 or $50 filing fee (depending on the claim amount) plus a Form 38 Address for Service. The same 14-day deadline applies.

Provincial Court allows lawyers more freely than the CRT does. At the CRT, parties are generally expected to represent themselves — legal representation requires tribunal permission in most cases. In Provincial Court Small Claims, you can have a lawyer, though the cost-benefit may not make sense for smaller claims.

Fee Waivers and Costs

CRT online responses are free. If the case goes to adjudication and you lose, the CRT can order you to reimburse the applicant's filing fees and tribunal fees. Businesses, corporations, and strata councils are not eligible for CRT fee waivers.

In Provincial Court, the filing fee for Form 2 is $26 (claims up to $3,000) or $50 (claims over $3,000). The losing party at trial typically pays the other side's filing fees and reasonable disbursements.

For a structured approach to responding as a business, the BC CRT Dispute Response Guide includes a Response Strategy Planner that works through each claim item and helps you organize your evidence before the negotiation stage begins.

See more British Columbia guides →