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In Alberta, there are two courts available to a creditor from which to obtain a judgment in a debt action. The first is the Civil Division of the Provincial Court of Alberta (once called Small Claims Court), and the other is the Court of Queen's Bench of Alberta. Below is information on both courts.
Civil Division of the Provincial Court of Alberta:
This court can deal with claims up to $25,000, and any amount over that must be either abandoned or taken to the Court of Queen's Bench. The cost of commencing an action in this court is $100.00 for claims up to $7500, and $200 for claims over that amount, and all documents necessary can be obtained from the clerk of the Provincial Court. Additionally, any judgment issued in this court and filed with the Court of Queen's Bench, becomes enforceable with Queen's Bench procedures.
The Statement of Claim required in this court is simpler to prepare. There is no time limit for service of a Civil Claims document and it may be served on any one living with the defendant and over the age of 16 years.
In Alberta, the defendant must file a Dispute Note within 20 days of the date of service. If one is not filed within that period, a judgment by default may be obtained by filing proof of service of the claim.
However, if the defendant files a defence, the clerk will set down a date for trial, usually within six months and the parties appear on the date and the matter is then adjudicated.
The court can award cash and pre-judgment interest.
A person may be represented by an agent in Provincial Court.
Court of Queen's Bench of Alberta:
This court handles any claim amounts. One must prepare and file a detailed Statement of Claim with the Court of Queen's Bench. The cost for filing in this court is $200.
The Statement of Claim, once filed, must be personally served on the debtor (defendant) within one year of the date of filing. If the defendant does not file a response, in the form of a Demand of Notice or Statement of Defence within 15 days of the date of service, a judgment by default may be obtained by filing proof of service of the claim.
However, if the defendant files a defence then you may make an application, on notice to the defendant, to a Justice (or Master in Chambers, if available) to determine the validity of their defence. The application is heard in chambers and if there is no issue to be tried, the Justice (or Master) will strike out the defence and enter Judgement against the defendant.
If, however, there is a triable issue between the plaintiff and the defendant, each party must within 90 days after the date of filing of the Statement of Defence list by Affidavit and produce all documents relevant or material to the issues. The parties will then require the other party to appear before a court reporter to answer questions under oath. This process, called Examination for Discoveries, is to permit each party to `discover' the information in the possession of the other.
Each party is supposed to take all relevant documents to the discoveries so that the same can be placed in evidence for use at the trial. However, is in not unusual for the opposing lawyer to request documents or other information not initially contemplated and to request an undertaking to produce any such document or information. A second discovery may then be held to ask any questions relating to the new information.
During this period various types of motions can be put before the court such as applications to compel a witness on discovery to answer questions or produce documents or to settle preliminary issues of law and these can often delay the matter.
Once discoveries and all undertakings have been completed and all interlocutory proceedings have been taken, the parties then complete and file a Certificate of Readiness, certifying the matter is ready for trial. This certificate is filed with the clerk of the court with a fee of $200. A pre-trial conference or a mini trial may be held to condense, clear up or simplify the proceedings prior to trial.
Once judgment has been granted, it is then approved as to contents by all the parties and filed with the clerk of the court. However, a judgment is only a confirmation by the court that the money is owed and is not an order of the court. Therefore, it is not considered contempt of court to fail to pay a judgement.
Costs are normally awarded to the successful party. Unless there is a contract which provides for Solicitor-client costs, costs are determined in accordance with Schedule C of the Alberta Rules of Court. This Schedule bears no relation to the actual costs of the party, but is generally considered to provide an indemnity of approximately 40-45% of the actual legal costs.
Once judgement has been obtained, collection procedures such as seizure of assets or garnishee of wages or bank accounts must be instituted if the defendant does not pay.