Recovering an Unpaid Invoice in New Brunswick Small Claims Court
When a Client Won't Pay
An unpaid invoice is one of the cleanest cases you can bring to New Brunswick's Small Claims Court. You did the work, you sent the bill, the client didn't pay. Claims for unpaid invoices typically range from $1,200 to $15,000, well within the $20,000 limit — and because the amount is usually a fixed sum (a liquidated debt), the process is more streamlined than a dispute over damages.
The two-year limitation period under the Limitation of Actions Act starts from the date the invoice was due, not from the date you issued it. If you've been chasing payment for 18 months, don't wait much longer.
Start With a Formal Demand Letter
Before filing, send a written demand letter by registered mail. State the exact amount owed, reference the specific invoice numbers and dates, and give the client 10 to 14 business days to pay. End with a clear statement that you will file a claim in Small Claims Court if the deadline passes without payment.
This is effective for two reasons. Many clients pay at this stage once they see the dispute is heading to court. And if they don't, the Adjudicator will see that you made a reasonable effort to resolve the matter without litigation.
Name the Right Defendant
This is critical for small business and freelance claims. If your client is a corporation, you must sue the exact registered corporate name — search the Service New Brunswick Corporate Registry ($3 online) to confirm it. Suing "ABC Design Studio" when the registered name is "ABC Design Studio Inc." can create enforcement problems.
If your client is a sole proprietor, sue the individual personally: "Jane Doe carrying on business as ABC Design Studio." The trade name alone has no separate legal identity.
If you dealt with a specific person at a company and aren't sure whether they were acting on behalf of a corporation or personally, the corporate search will clarify the entity's structure. Getting this wrong means you could win a judgment that's impossible to enforce.
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Your Evidence Package
Unpaid invoice claims live and die on documentation. Gather:
- The contract or engagement agreement — even an email chain confirming the scope and price counts
- The invoices — dated, with clear payment terms
- Proof you did the work — deliverables sent, work completed, hours logged
- Correspondence about payment — emails, texts, or messages where the client acknowledged the debt, asked for more time, or disputed the amount
- Payment history — any partial payments received, showing what's still outstanding
- Your demand letter and proof it was delivered
For freelancers, the strongest cases have a written agreement (even informal), clear invoices, and proof the work was delivered. If you have an email where the client said "looks great, I'll pay next week" and then went silent, that's powerful evidence.
File the Claim
Complete Form 1 (Claim) with the exact amount owed, including any pre-judgment interest if your contract provides for it or if you're claiming statutory interest. File it at the court office in the judicial district where the client lives or carries on business, or where the work was performed.
Filing fee: $50 for claims up to $3,000, $150 for claims between $3,000.01 and $20,000.
Because an unpaid invoice is a liquidated debt — a fixed, calculable amount — the default judgment process is simpler if the client doesn't respond. Once the 30-day response window passes without a filing, you request judgment using Form 6 with proof of service, and the clerk can enter judgment for the stated amount without an assessment hearing.
Pre-Judgment Interest
If your contract includes an interest clause, you can claim interest at the agreed rate from the date the invoice was due. For a debt, the Small Claims regulation calculates interest at the rate agreed by the parties through the date of judgment; it does not set a general pre-judgment rate for unpaid invoices. Specify the basis and rate in Form 1.
Remember that pre-judgment interest counts toward the $20,000 limit. If your principal is $18,000 and two years of interest pushes the total past $20,000, you'd need to abandon the excess or file in the Court of King's Bench.
At the Hearing
If the client disputes the claim and the case goes to a hearing, present your evidence in order: the agreement, proof of work completed, the invoices, payment demands, and the client's responses (or lack thereof). The Adjudicator will want to see that a service was agreed, it was performed, and the client hasn't paid.
Common defences include "the work wasn't completed" or "the quality was poor." Your proof of delivery and any client sign-off on the work counters these.
Our Making a Small Claim in New Brunswick guide includes an evidence bundle index template and a pre-judgment interest calculator to help you build a tight case for recovering what you're owed.
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