Can I recover legal fees in a contractor dispute in Ontario?

In Ontario, you generally cannot recover legal fees in contractor disputes unless there's a specific contract clause allowing it or you're dealing with egregious misconduct - but there are several better options for Ottawa homeowners.

Small Claims Court - Your Best Option

For contractor disputes under $35,000 in Ontario, Small Claims Court is designed to be accessible without lawyers. You can represent yourself, and while you typically can't recover legal fees, the filing fees are minimal ($102-$220 depending on claim amount). The court is located at 161 Elgin Street in Ottawa (613-239-1313).

When Legal Fees Might Be Recoverable

Legal fees are only recoverable in contractor disputes if:

• Your contract specifically includes a "costs clause" stating the losing party pays legal fees


• The contractor's conduct was so egregious that the court awards costs (rare)


• You're pursuing a construction lien claim where bad faith is proven


• You're dealing with fraud or criminal activity

Better Alternatives for Ottawa Homeowners

Tarion Warranty Corporation: If your contractor was registered with Tarion (required for new home construction), you have warranty protection and dispute resolution without legal fees.

Home Improvement Protection Act: For contracts over $50, contractors must provide specific warranties. Violations can result in penalties without you hiring a lawyer.

Construction Lien Act: You can file a lien against the property yourself for unpaid work or defective materials. The 10% holdback system protects homeowners - hold back 10% of payments for 60 days after completion.

Practical Steps for Ottawa Disputes

Contact the City of Ottawa's Building Code Services (613-580-2424) if the work doesn't meet building code requirements. They can order corrections at no cost to you.

Check if your contractor has WSIB coverage and proper licensing through ESA (electrical) or TSSA (gas/HVAC). Unlicensed work gives you stronger grounds for full refunds.

Consider mediation through the Better Business Bureau or contact Consumer Protection Ontario (1-800-889-9768) for guidance on your rights under the Consumer Protection Act.

The Reality of Legal Costs

Even if you win a contractor dispute in Superior Court, legal fees often exceed the recovery amount. A $10,000 bathroom dispute could cost $15,000+ in legal fees. Small Claims Court caps your risk and provides faster resolution.

Prevention is Key

Always verify contractor licensing through ontario.ca/licensed-trades, get detailed written contracts, and follow proper payment schedules with holdbacks. The Construction Lien Act requires you to hold back 10% of each payment for 60 days after completion - this is your best protection.

For disputes under $35,000, Small Claims Court at 161 Elgin Street offers the most practical path forward without the risk of unrecoverable legal fees.