Served With a Small Claims Notice of Claim in BC: How to Reply or Counterclaim

Being sued is stressful, even when the amount is modest and you are sure the claim is wrong. In BC Provincial Court small claims, the clock starts the day you are served, and the first deadline is short.

This guide explains your options under the Small Claims Rules, how to reply or counterclaim, when you might bring in a third party, and what to do if a default order has already been made.

Your options when a notice of claim arrives

Rule 3 of the Small Claims Rules lists what a defendant can do after receiving a notice of claim. You can choose one or more of these:

• Pay and ask for a withdrawal. Pay the amount claimed directly to the claimant and ask them to withdraw the claim.
• Admit all or part. Agree that you owe some or all of the amount.
• Admit and propose a payment schedule. Admit what you owe and offer to pay it over time.
• Dispute all or part. Oppose the claim and list your reasons.
• Counterclaim. Make your own claim against the claimant.

Doing nothing is not one of the options. The Province's small claims guide warns that if you ignore the claim, the other party can get a judgment against you as though a trial had been held.

The reply deadline: 14 days, or 30 if served outside BC

To admit, dispute or counterclaim, you complete a reply (Form 2) and an address for service (Form 38), following the instructions on the forms. Under Rule 3 (4), the reply must be filed within 14 days after service if you were served in British Columbia, or within 30 days if you were served outside BC. It must also be filed before the registrar has made a default order or set a hearing date.

You file the reply and address for service at the registry where the notice of claim was filed, and you pay the filing fee unless you have agreed to pay the whole claim. The registry, not you, then serves a copy of your reply on the other parties.

Practical points for the reply

• Read the claim closely. Note exactly what is claimed, the amount, and the facts alleged.
• Answer the facts, not the tone. A reply that sets out briefly and clearly why you disagree tends to frame the case better than a long rebuttal.
• Keep your address current. The address for service is where court documents will be sent, so update it if it changes.
• Check your registry. Some registries run pilot projects with different steps, so confirm the process with the registry where the claim was filed.

Counterclaiming against the claimant

If the claimant owes you money arising from the same dealings, Rule 4 lets you make a counterclaim in the counterclaim part of your reply, with an additional fee. Your counterclaim is served on the claimant when the registry serves your reply. The claimant then has 14 days to file their own reply to the counterclaim.

The small claims limit matters here. If your counterclaim is for more than $35,000, not counting interest and expenses, you can either abandon the amount over $35,000 so the counterclaim stays in Provincial Court, or start an action in the BC Supreme Court. Abandoning is permanent: under Rule 4 (6), you cannot later sue for the part you gave up. That choice deserves advice before you make it.

Bringing in a third party

Sometimes the real answer to a claim is that someone else should pay, such as a subcontractor, a supplier or a co-owner. Rule 5 allows a defendant who has filed a reply to make a claim against that person with a third party notice (Form 3), as long as a settlement conference has not yet been held. After that point, you need a judge's permission.

A third party notice has its own steps. It must be filed with a fee, served on the third party with copies of the claim, your reply and other listed documents, and followed by a certificate of service within 30 days, or it expires unless renewed. If the third party is a company or society, you also file a registry search showing its registered office address.

What happens if you miss the deadline

If you do not file a reply in time, Rule 6 allows the claimant to ask for a default order:

• If the claim is for a debt, the registrar must make a default order requiring you to pay the amount claimed, plus expenses and any interest the claimant is entitled to.
• If the claim is not for a debt, the registrar sets a hearing before a judge to decide the amount or the appropriate order. A defendant who has not replied is not entitled to notice of that hearing.

Once a hearing date has been set, you cannot file a reply without a judge's permission. The Province's guide notes that a late reply needs a good reason for the delay.

If a default order has already been made

Under Rule 17 (2), a judge may cancel a default order made because you failed to file a reply. You apply to the court and attach an affidavit explaining why you did not reply, the reason for any delay in applying, and the facts that support your position. Moving quickly matters, because delay is one of the things you must explain. A default order can be enforced like other small claims orders, so it is worth acting as soon as you learn of it.

Before you file: questions worth asking

A short reply is easy to file but hard to undo. Before you send yours in, consider:

• Is the claim brought within the limitation period? Our guide to the two-year limitation period in BC explains the basic rule.
• Is this the right forum? Many claims of $5,000 or less belong at the Civil Resolution Tribunal, and different steps apply to a claim that started there. See CRT, small claims or Supreme Court.
• Do you have documents, messages or photos that support your side? Gather them now, while memories are fresh.
• Would an early offer or payment plan cost less than defending the claim through a settlement conference and trial?

If the dispute is larger and you were served with a notice of civil claim in the Supreme Court instead, the deadlines and forms are different. Our guide to being served with a notice of civil claim covers that process.

Served with a notice of claim? Get your reply right the first time

Our litigation lawyers can review the claim and the documents you have, help you decide whether to dispute, settle, counterclaim or bring in a third party, and prepare your reply and next steps in the Provincial Court process.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.