Commercial Lease Dispute in New Brunswick Small Claims Court

Commercial Lease Money Claims Go to Small Claims Court, Not the TLRO

If you've been sued over unpaid rent or damages under a commercial lease in New Brunswick and the amount sought is $20,000 or less, Small Claims Court can hear it unless the claim asks the court to decide title to or an interest in land. This catches some people off guard because residential lease disputes go through the Tenant and Landlord Relations Office (TLRO), and they assume all rental disputes follow the same path.

They don't. The TLRO operates under the Residential Tenancies Act and handles security deposits, residential rent arrears, habitability complaints, and eviction disputes for residential tenants and landlords. It has no jurisdiction over commercial properties. Commercial leases — office space, retail storefronts, warehouses, restaurants, workshops — are governed by contract law and the Landlord and Tenant Act, with no administrative tribunal to hear disputes. The Small Claims Court of New Brunswick is a forum for commercial lease money claims under $20,000 that do not involve title to or an interest in land.

What Commercial Lease Claims Look Like

The most common commercial lease claims in Small Claims Court involve:

Unpaid rent. A landlord sues a former commercial tenant for rent arrears accumulated during the lease term or after the tenant vacated before the lease expired. The landlord files a Form 1 Claim for the outstanding balance.

Property damage beyond normal wear. The landlord claims the tenant damaged the premises — broken fixtures, removed built-in improvements, damage to flooring or walls — and seeks the repair or replacement cost. Photographic evidence of the condition at move-in and move-out is critical.

Unreturned deposits or prepaid rent. A commercial tenant sues a landlord who retained a security deposit, last month's rent, or improvement allowance without justification after the lease ended.

Early termination disputes. One party broke the lease early and the other seeks damages — lost rent for the landlord, or unreturned deposits and relocation costs for the tenant. The lease terms on early termination and the duty to mitigate are central.

Maintenance and repair obligations. The lease assigns responsibility for specific repairs (HVAC, plumbing, structural). When one party fails to perform and the other pays for the repair, the paying party sues to recover the cost.

Responding to a Commercial Lease Claim

If you've been served with a Form 1 Claim over a commercial lease, the process follows the standard Small Claims Court procedure. You have 30 calendar days from the date of service to file a Form 2 Response. The filing fee is $50 without a counterclaim, or $50–$150 with a counterclaim depending on the amount.

Your response options on Form 2 are the same as any other claim: dispute the claim in full, admit in full, admit in part (and optionally request a payment hearing), or dispute and file a counterclaim. For commercial lease disputes, a counterclaim is common — a tenant sued for unpaid rent might counterclaim for the landlord's failure to maintain the premises, and a landlord sued for a deposit might counterclaim for property damage.

Key Evidence for Commercial Lease Cases

Commercial lease disputes tend to be document-heavy. The evidence that matters:

• The signed lease agreement. Every clause is potentially relevant — rent amount, lease term, renewal terms, maintenance obligations, permitted use, early termination provisions, and security deposit terms.
• Any lease amendments, addenda, or side agreements. Written modifications to the original terms, including email confirmations of agreed changes.
• Payment records. Bank statements, e-transfer receipts, or cancelled cheques showing rent payments made (or not made).
• Condition reports. Photographs and written records of the premises at the start and end of the tenancy. Dated photographs are the single most important piece of evidence in damage disputes.
• Repair invoices and estimates. Third-party contractor quotes for damage repair or maintenance work one party claims the other should have performed.
• Correspondence about the dispute. Emails, letters, or text messages between landlord and tenant discussing the issues — unpaid rent demands, repair requests, notice of termination, or damage complaints.

The $20,000 Limit

Commercial lease disputes can easily exceed $20,000, especially when they involve several months of unpaid rent or major property damage. If your claim or counterclaim exceeds the limit, you have two choices under the Small Claims Act:

You can abandon the excess under Section 7 — cap your claim at $20,000 and permanently forfeit the rest. You cannot recover the abandoned amount in any other court.

Alternatively, you can apply to transfer the entire case to the Court of King's Bench using Form 22. This moves the case into a more formal (and more expensive) court process, but preserves your right to claim the full amount.

If you've been served with a commercial lease claim and need to work through the 30-day response deadline, Form 2 options, and hearing preparation step by step, the Responding to a Small Claim in New Brunswick guide covers the full process from the moment you receive the papers through to post-decision options.

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