Quebec Small Claims Waive Excess Amount and Calculate Interest

Reducing Your Claim to Fit the C$15,000 Limit

The Small Claims Division of the Court of Quebec handles disputes where the principal amount is C$15,000 or less, excluding interest and court costs. If your actual damages exceed that ceiling, you have a choice: sue in the regular civil division (which means higher costs, longer timelines, and the option of lawyer representation), or voluntarily reduce your claim to C$15,000 and stay in small claims.

Reducing your claim is called waiving the excess. It's an explicit, irrevocable decision. When you file Form SJ-870E and state your claim as C$15,000, you're permanently giving up any right to recover the amount above that. You can't file a second claim later for the difference — the Code of Civil Procedure prohibits splitting a single cause of action into multiple claims.

When Waiving Makes Sense

The math depends on your situation. Small claims is faster, cheaper (filing fees of C$121 to C$241 for natural persons), and doesn't require a lawyer — in fact, lawyers can't appear at the hearing. The regular civil division involves higher filing fees, potentially thousands in legal costs, and wait times that can stretch years.

If your damages are C$18,000, waiving C$3,000 to stay in small claims might be the practical choice. If your damages are C$45,000, the C$30,000 you'd abandon probably isn't worth the convenience.

There's no form specifically for the waiver — you state the reduced amount on your application form and the waiver is implied. But make sure you actually mean it. The judge can't award more than you claimed, and you can't come back for the rest.

How Interest Works in Quebec Small Claims

When you win a judgment, the court awards interest on top of the principal amount. Interest doesn't count toward the C$15,000 ceiling — it's calculated separately.

Under Article 1617 of the Civil Code of Québec, interest on a monetary obligation accrues at either the legally prescribed rate or the rate specified in your contract (if you had one).

Legal interest rate: The legal interest rate in Québec is 5%.

Contractual interest rate: If your contract specified an interest rate on overdue payments — say, 1.5% per month on unpaid invoices — the court applies that rate instead, provided it's not abusive.

Additional indemnity: Under Article 1619, you can also claim an additional statutory indemnity calculated using the excess of the interest rate fixed for claims of the State under the Tax Administration Act over your agreed interest rate, or over the legal rate if you have no agreed rate. This is a formulaic top-up that compensates for the time value of money beyond basic interest.

When Interest Starts Running

Interest accrues from the date the debtor was put in default. It generally runs from the date of the formal notice (mise en demeure), not the day after its response deadline; in exceptional circumstances, the court can choose a later date. If you did not need a formal notice because default arose by operation of law, interest runs from the date set by that rule.

On your application form, specify the principal amount and note that you're claiming interest and the additional indemnity from the default date. You don't need to calculate the exact figure — the court will compute it from the default date to the judgment date, and interest continues to accrue on unpaid judgments.

A Practical Example

You're owed C$12,000 for unpaid renovation work. Your contract specifies 2% per month on overdue balances. The debtor received your formal notice on March 1 with a 15-day deadline. The general rule is that interest starts on the notice date, March 1.

By the time the hearing happens eight months later, the contractual interest alone is roughly C$1,920 (C$12,000 × 2% × 8 months). Add the statutory indemnity on top. None of this counts toward the C$15,000 limit — it's awarded in addition to your C$12,000 principal.

For the full filing process, interest calculation worksheets, and deadline tracking, see the Quebec Small Claims Filing Guide.

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