Unpaid Invoice Small Claims NWT

The Territorial Court Handles Debt Claims Up to C$35,000

Whether you are a sole trader chasing a customer who will not pay, a homeowner trying to recover a contractor deposit, or a consumer who was refused a refund, the Territorial Court of the Northwest Territories is the forum for monetary claims up to C$35,000. The filing fee is $55, and you do not need a lawyer.

The process is the same regardless of the dispute type: demand letter, file Form 1, serve the defendant, then attend mandatory mediation if the defendant files a defence. If you obtain judgment, enforce it if necessary.

Unpaid Invoice Claims

If you performed work or delivered goods and the customer has not paid, your claim is straightforward. You have a liquidated claim — the amount is fixed and provable from the invoice itself.

What you need as evidence:

• The original contract or written agreement (even an email chain confirming the job and price counts)
• The invoice(s) showing the amount owed and the due date
• Proof of delivery — completion photos, delivery receipts, signed work orders
• Any communications where the debtor acknowledged the debt or promised payment

Because the amount is a fixed sum, if the defendant does not file a defence within 25 days of service within the NWT, or 30 days if served outside the NWT, the Clerk may enter default judgment (Form 11) administratively without an oral hearing. For sole traders in Yellowknife, this is often the fastest path to a judgment.

Contractor Deposit Claims

A contractor who takes a deposit and then abandons the job or delivers substandard work is one of the most common small claims scenarios in the NWT. Your claim here is typically for the return of the deposit, possibly plus the cost difference of hiring a replacement.

Key considerations:

Name the right entity. If the contractor operates as a numbered company or a registered corporation, search the GNWT Corporate Registries (CROS) to find the exact legal name. Suing "Dave's Renos" when the registered entity is "1234567 NWT Ltd. dba Dave's Renos" can make your judgment unenforceable.

Document the abandonment. Save all text messages, emails, and photos showing the state of the work. A timeline showing when the contractor stopped responding strengthens your case.

Get replacement quotes. If you hired someone else to finish the job, the difference between what you paid the original contractor and the total cost of completion is part of your damages.

Consumer Refund Claims

If a business refused your refund request and you believe you are entitled to your money back, you can consider a civil claim. The GNWT Department of Municipal and Community Affairs (MACA) Consumer Affairs provides advice on consumer complaints.

For a purchase gone wrong — particularly a defective product or a service that was never delivered — your evidence should include the receipt or proof of purchase, any warranty or return policy, and communications showing the business refused to resolve the issue.

The Process in Brief

1. Send a demand letter with an itemized breakdown and a 10–14 business day deadline.
2. File Form 1 at the nearest registry (Yellowknife, Hay River, or Inuvik) and pay $55.
3. Serve the defendant with stamped Form 1 plus a blank Form 2. File Form 3 (Affidavit of Service) after service.
4. If the defendant files a defence, attend mandatory mediation. Bring your evidence organized and know your settlement floor.
5. If mediation fails, proceed to trial. If you win, enforce with Form 22 (Writ of Execution), Form 35 (Garnishee Summons), or Form 23 (Payment Hearing).

For invoice-specific filing instructions and a recovery checklist, see the NWT Small Claims Filing Guide.

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