Contractor Took Your Deposit in Nunavut? How to Get It Back Through Small Claims

You hired a contractor, paid a deposit up front, and the work never happened — or what did get done looks nothing like what was promised. In Nunavut, where the pool of tradespeople is small and travel costs push deposits into the thousands, losing that money stings harder than it would anywhere else.

The Nunavut Court of Justice handles small claims up to $20,000 CAD, and contractor deposit disputes are one of the most common reasons people file.

Why Contractor Deposit Disputes Are So Common in Nunavut

Northern construction operates on a seasonal crunch. Materials arrive by sealift once a year, tradespeople fly between communities, and homeowners often pay large deposits to lock in a spot on the schedule. When a contractor takes the deposit and either vanishes or abandons the job partway through, the homeowner is left with no work, no money, and no easy way to find a replacement.

These disputes almost always fall within the $20,000 small claims limit because deposits typically range from $2,000 to $15,000 for residential jobs like furnace repairs, renovations, or freight deliveries.

Before You File: The Demand Letter

A written demand is standard practice before filing, though it is not an absolute condition under the Small Claims Rules. Your letter should name the contractor, describe the work that was promised, state the exact deposit amount, and give a deadline of 14 days to either complete the work or return the money.

Mail it by registered post (keep the Canada Post tracking receipt) and email a PDF copy to the contractor if you have their email address. If the contractor has left the territory, send it to whatever address you have — the letter itself does not need to reach them for you to file a claim, but the court considers whether you made a genuine effort to resolve things before suing.

Many contractors will settle once they see a formal demand with a court filing deadline attached.

Naming the Right Defendant

This is where people trip up. You cannot sue a business name like "Arctic Custom Heating" if it is an unregistered sole proprietorship — you must sue the individual who operates it. Your Notice of Claim would name "Jane Smith operating as Arctic Custom Heating."

If the contractor runs an incorporated company (ending in Inc., Ltd., or Corp.), you sue the corporation by its registered name. Order a Corporate Profile Report through the Legal Registries Division of Nunavut's Department of Justice ($30–$40 fee) to confirm the legal name and registered office address. The report also shows whether the company is active, struck, or dissolved; use that information when confirming whom to name and where court documents can be served.

Filing the Notice of Claim

Once the demand deadline passes without a satisfactory response, file your Notice of Claim with the Civil Registry of the Nunavut Court of Justice. The filing fee is $75.

You can file in person at the Nunavut Justice Centre in Iqaluit (510 Niaqunngusiariaq Road), by mail to P.O. Box 297, Iqaluit, NU X0A 0H0, or by emailing a PDF to [email protected] and paying the fee by phone at 1-866-286-0546.

Attach copies of your contract or written agreement, the deposit receipt or bank transfer record, any text messages or emails showing the contractor's promises, photographs of incomplete or defective work, and your demand letter with the delivery receipt.

Service and the 30-Day Clock

After the Registry stamps your claim, the Sheriff's Office handles service — you cannot serve the contractor yourself. If the contractor is outside Nunavut but still in Canada, service is permitted when the cause of action arose in Nunavut or the court grants leave; the defendant's response period is extended. If the contractor cannot be located, you can apply to the Registrar or a judge for substituted service, proposing a method likely to bring the claim to the contractor's attention.

Once served, the contractor has 30 days to file a Reply. If they do not respond, you can apply for default judgment. A fixed, clearly identified amount may be entered administratively by the Registrar; if the damages need assessment, the court can schedule an assessment hearing.

What to Expect at the Hearing

If the contractor does file a Reply disputing your claim, the court schedules mandatory mediation first. Many contractor deposit cases settle at mediation because the contractor would rather negotiate a repayment plan than face a judge.

If mediation fails, the case goes to trial. Bring your evidence binder: the contract, deposit receipt, demand letter, photos of the property before and after, any texts or emails, and a written timeline. If you hired another contractor to finish the job, bring that invoice too — it demonstrates your actual loss.

The judge has broad discretion in small claims and will ask both sides direct questions. You do not need a lawyer, and most claimants represent themselves.

Getting Your Money Back After Judgment

Winning a judgment does not automatically put the money in your account. If the contractor does not pay voluntarily, you can request a payment hearing to examine their finances, then pursue garnishment of wages or bank accounts, or a Writ of Execution through the Sheriff's Office.

For a complete roadmap from demand letter through judgment enforcement, the Making a Small Claim in Nunavut guide walks through each step with worksheets and deadline tracking built in.

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