How to Respond When a Contractor or Customer Sues You in Nunavut Small Claims Court

If a contractor has sued you for unpaid work, or a customer has sued you over a job or sale, the immediate answer is the same: file your Reply (Form 2) with the Nunavut Court of Justice Civil Registry within 30 calendar days of being served. Every other decision — whether to dispute, admit part of the claim, or file a counterclaim — fits inside that 30-day window. If you miss it, the claimant can file a written direction asking for default judgment. The Registry can then note you in default; the Clerk can enter judgment without a hearing for fixed-sum claims, while claims requiring damage calculation go to an assessment hearing.

This guide walks through the specific procedural steps for contractor and trade disputes, which are a common small claims scenario in Nunavut. It does not cover consumer debt claims from lenders or collection agencies — if that is your situation, contact the Legal Services Board at 1-833-913-1696 to ask about intake and eligibility while you prepare your Reply.

Common Scenarios That End Up in Small Claims

Contractor and trade disputes in Nunavut typically fall into a few patterns:

• Homeowner sued by a contractor for an unpaid invoice on renovation, repair, or construction work
• Contractor sued by a homeowner for incomplete, defective, or abandoned work
• Small business owner sued by a customer over a product, service, or unfulfilled agreement
• Private seller sued by a buyer (or vice versa) over a vehicle, equipment, or personal property sale
• Landlord or tenant served with a Small Claims Notice of Claim about a tenancy dispute

The Nunavut Rental Office has jurisdiction over residential tenancy disputes. If you are formally served with a Small Claims Notice of Claim about a rental matter, do not assume an application to the Rental Office pauses the 30-day deadline; file a Reply (Form 2) raising any jurisdictional objection.

The 30-Day Response Timeline

The moment you are served with a Notice of Claim, the clock starts. Day 0 is the service date. You count 30 consecutive calendar days from the day after service. If Day 30 lands on a weekend, statutory holiday, or a day the Registry is closed, the deadline extends to 4:00 PM Eastern on the next business day.

For contractor disputes specifically, be aware that the claim may include not just the invoice amount but also pre-judgment interest and court costs. The C$20,000 ceiling applies to the principal amount only — interest and costs do not count toward the limit.

Choosing Your Response Path

Form 2 gives you four options. For contractor and trade disputes, here is how each one typically applies:

Admit the Full Amount

You agree the money is owed. You can propose a monthly payment schedule in Part A of Form 2 if you cannot pay the full amount at once; a payment plan accepted by both parties can be formalized in a Consent Order.

When this makes sense: The work was done, the invoice is correct, and the dispute is really about ability to pay rather than whether the money is owed.

Admit Part, Dispute the Rest

You acknowledge some of the claim but disagree on the amount. For example, you agree the contractor did some work but dispute the charge for work that was incomplete or defective.

When this makes sense: A contractor did 80% of the job correctly but the invoice covers 100%. You admit the portion for completed work and dispute the rest.

Dispute the Entire Claim

You deny the claim. Part B of Form 2 requires you to write out your factual reasons — not legal arguments, but a clear statement of what happened and why you do not owe the money.

When this makes sense: The contractor did not perform the work as agreed, the goods were never delivered, or the claimant's version of events is factually wrong.

File a Counterclaim (Form 3)

You dispute the original claim and also assert your own claim against the person who sued you. This is common in contractor disputes where both sides believe the other owes money.

When this makes sense: A contractor sues you for an unpaid invoice, but the work was defective and you paid another contractor to fix it. Your repair costs become your counterclaim. A counterclaim requires Form 3, a separate C$75 filing fee, and service on the claimant, who then has 30 days to respond to your counterclaim.

Building Your Evidence for a Contractor Dispute

Contractor and trade disputes are won or lost on documentation. Start organising your evidence immediately — do not wait for the hearing date.

Documents to gather:

• The original contract, quote, estimate, or written agreement (text messages and emails count)
• Every invoice, receipt, and payment record related to the work
• Photographs of the work — both what was completed and what was defective or incomplete, with dates
• Written communications between you and the other party (emails, texts, letters) showing what was agreed, what changed, and when problems were raised
• Quotes or invoices from other contractors if you hired someone to fix defective work
• Any inspection reports or expert assessments of the work

How to organise it:

Build a simple exhibit binder — printed pages in chronological order, each one numbered (Exhibit 1, Exhibit 2, etc.) with a one-line description. The Responding to a Small Claim in Nunavut guide includes a printable evidence organiser and exhibit index template designed for this.

Prepare an organized, paginated evidence bundle and follow the Registry's directions about exchanging documents and the number of copies.

Mediation Before the Hearing

Nunavut Small Claims Court includes mandatory mediation. Before your case goes to a hearing, the court schedules a mediation session where you and the claimant try to reach a settlement with a mediator's help.

For contractor disputes, mediation is an opportunity to settle before a hearing. Prepare by knowing:

• The maximum amount you would pay to resolve the dispute without a hearing
• The minimum amount you would accept if you have a counterclaim
• What a reasonable compromise looks like given the evidence

Be aware of Form 8A offers to settle. If you reject a formal offer and the final judgment is equal to or less favorable to you than the terms offered, the court may order penalty costs against you. This is a cost incentive to settle — understand it before you reject any formal offer.

Who This Is For

• Homeowners served with a claim by a contractor over unpaid work
• Contractors or tradespeople sued by a customer over work quality or completion
• Small business owners sued by a customer or supplier
• Private sellers or buyers in a dispute over a vehicle, equipment, or property sale
• Anyone in Nunavut facing a trade or commercial dispute in Small Claims Court up to C$20,000

Who This Is NOT For

• People sued by a lender, debt buyer, or collection agency — contact the Legal Services Board at 1-833-913-1696
• Residential tenancy disputes — the Nunavut Rental Office has jurisdiction
• Anyone whose dispute exceeds C$20,000 and does not abandon the excess amount (ask about the NUCJ general civil list)

Tradeoffs: Self-Represented vs Hiring a Lawyer

Private lawyers in Iqaluit charge C$300 to C$600 per hour, with retainers starting at C$1,500 to C$3,000. For claims under C$5,000, the legal fees alone may exceed what is in dispute. Small Claims Court is designed for self-represented parties — the rules are simplified, the forms are standardised, and the hearing is informal compared to a regular civil trial.

Hiring a lawyer makes more sense when the claim is near the C$20,000 ceiling, the legal issues are complex (e.g., contract interpretation disputes), or the claimant has legal representation and you feel outmatched.

For contractor disputes under C$5,000, filing the Reply yourself with a structured guide and well-organised evidence is the practical choice.

Frequently Asked Questions

Can a contractor get a default judgment against me even if the work was bad?

Yes. Default is procedural — if you do not file your Reply within 30 days, the claimant can file a written direction asking for default judgment. The Registry can then note you in default. The Clerk can enter judgment without a hearing for a fixed-sum claim; a claim requiring damage calculation goes to an assessment hearing. The quality of the work is irrelevant if you miss the deadline.

Should I file a counterclaim or just dispute the claim?

File a counterclaim if you have your own monetary loss — for example, you paid another contractor to fix the defective work, or the original contractor damaged your property. If you simply disagree with the amount owed and have no independent claim of your own, a dispute (Part B of Form 2) is sufficient.

What if I already paid the contractor and they are claiming I did not?

Gather every payment record — bank statements, e-transfer confirmations, cancelled cheques, receipt signatures. These become your primary evidence. In Part B of Form 2, state the dates and amounts of each payment.

Do I need a lawyer for mediation?

No. Mediation in Nunavut Small Claims Court is designed for parties to represent themselves. The mediator facilitates the discussion and helps identify possible settlements. Having your evidence organised and knowing your settlement range is more useful than having a lawyer present.

How much does the response guide cost?

The Responding to a Small Claim in Nunavut guide is $24. It covers the full defendant workflow from reading your served papers through to the hearing, with worksheets for deadline calculation, Reply drafting, evidence organisation, and counterclaim decisions. Full refund, no time limit — email [email protected] if it does not help.

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