Yukon Small Claims Third-Party Claim: How to Use Form 04

When to File a Third-Party Claim

A third-party claim makes sense when someone not named in the lawsuit is the one who should be paying. The plaintiff sued you, but you believe a third party is fully or partly responsible for their damages.

Common scenarios: a homeowner sues you (the general contractor) for a botched bathroom renovation, but the tiling subcontractor did the defective work. A customer sues your business over a faulty product, but you sourced it from a supplier who provided defective goods. A co-tenant's guest damaged the landlord's property, but the landlord is suing only you.

The point of Form 04 is to bring that third party into the case so the court can sort out who actually owes what—all in one proceeding, rather than requiring you to file a separate lawsuit later.

How to File

You file a Form 04 Third Party Claim alongside your Form 02 Reply, within the 20-day response window (30 days if served outside Yukon). Both documents go to the court registry together. The Form 02 Reply must also be served on the plaintiff within that period.

The Form 04 identifies the third party by name and address, explains the facts connecting them to the dispute, and states why they should be liable for all or part of the plaintiff's claim. Be specific—"The subcontractor installed the plumbing, the plumbing leaked, and the leak caused the damage the plaintiff is claiming" is far stronger than "It wasn't my fault."

After filing, you must serve the Form 04 on both the plaintiff and the third party. The third party then has 20 days (or 30 days if served outside Yukon) to file their own Form 02 Reply. If they don't respond, judgment may be entered against them on the third-party claim, as the Form 04 notice explains.

What Happens Next

If a pre-trial conference is scheduled, the judge considers all three positions: the plaintiff's claim against you, your defence, and your third-party claim against the new party. If the case goes to trial, everything is heard together.

The court can decide whether the third party must indemnify you for some or all of any amount you owe the plaintiff. The result depends on the facts and the relief sought in the third-party claim.

Third-Party Claim vs. Counterclaim

These are different tools. A counterclaim (Form 03) is your own monetary claim against the plaintiff—you're saying they owe you money. A third-party claim (Form 04) is directed at someone who isn't a party to the lawsuit yet—you're saying this other person should be responsible for what the plaintiff is claiming from you.

You can file both if the situation calls for it: a counterclaim against the plaintiff for damages they caused you, and a third-party claim against someone else for their share of the plaintiff's losses.

The $25,000 Limit Still Applies

The third-party claim is subject to the same $25,000 monetary cap as any Small Claims Court claim. If your potential recovery from the third party exceeds $25,000, you'd need to either abandon the excess to stay in Small Claims Court or apply to transfer the whole case to the Supreme Court of Yukon.

The Responding to a Small Claim in Yukon guide covers third-party claims alongside other response strategies, with instructions for drafting Form 04 and managing the multi-party pre-trial process.

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