Quebec Small Claims Court for Business Defendants and Sole Proprietors

Business owners sued in Quebec small claims court face rules that individuals do not — employee headcount thresholds, different filing fees, and restrictions on who can represent the company at the hearing. Here is what you need to know.

The 10-Employee Rule

The Small Claims Division of the Court of Québec handles claims up to $15,000 CAD. A legal person may bring its own claim only if it had 10 or fewer employees during the 12 months before filing. A business with more than 10 employees may still be sued by an eligible plaintiff, but cannot bring its own counterclaim in the Small Claims Division.

Sole proprietors (travailleurs autonomes) are treated as natural persons, so the 10-employee rule does not apply to them directly. If you operate as an individual under a trade name, you follow the same rules as any individual defendant.

Higher Filing Fees for Legal Persons

Businesses classified as legal persons (incorporated companies) pay higher court fees than individuals:

These fees are not waivable for legal persons — the social assistance and Legal Aid fee exemptions apply only to natural persons.

Who Represents the Business at the Hearing

Lawyers cannot appear in Quebec small claims court. For a corporation or other legal entity, the representative must be:

• A director or officer of the company, or
• A regular salaried employee who works exclusively for the business

The representative cannot be a lawyer, even if they happen to be an employee. An outside consultant or advisor who is not an officer or regular salaried employee does not meet this rule. Choosing someone who knows the transaction and company records can make it easier to explain the business's position.

For sole proprietors, you represent yourself — the same as any individual.

Commercial Lease Disputes

Commercial lease disputes (between a business landlord and a business tenant) can go to Small Claims if the amount is $15,000 or under and any entity acting as plaintiff meets the employee threshold. This is different from residential lease disputes, which are handled exclusively by the Tribunal administratif du logement (TAL) regardless of the amount.

The distinction matters: if a customer sues your business over a service dispute at your commercial premises, that goes to Small Claims. If a residential tenant sues you over their apartment, that goes to the TAL. Mixed-use properties can create jurisdictional questions — the nature of the lease, not the building, determines the forum.

Common Business Defendant Scenarios

Customer sues over a service or product. The customer files as a natural person; your business files Form SJ-871E as the defendant. If your legal person meets the employee threshold and has a valid counterclaim (the customer damaged equipment, failed to pay an invoice connected to the same dispute), you can include it in your response.

Contractor vs. business client. A contractor sues your business for unpaid invoices. The same rules apply — file the response within 20 days, pay the legal person fee tier, and send a director or employee to the hearing.

B2B disputes between small businesses. Both parties file as legal persons with the higher fee tiers. If either business had more than 10 employees during the relevant period, the filing or counterclaim rights are affected accordingly.

The Contesting a Small Claim in Quebec guide covers the response process for both individuals and businesses, with a section on representation rules and the employee threshold.

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