Yellowknife (Mar 05/03) - Debts and damages are an inevitable part of our society and resolving them in a just and mutually satisfactory way can sometimes seem a hopeless goal.

Rental officer Hal Logsdon: "About three-quarters of the disputes that landlords bring are over unpaid rent."

Occasionally -- human nature being as complicated and imperfect as it is -- you're left with no other options than to bring your beef to court.

The NWT doesn't have a separate small claims court but there is a legislated system for folks who want to take the law into their own hands, so to speak.

Bruce McKay, manager of court services in Yellowknife, explained that a section of the Territorial Court Act covers small claims as a function within the territorial court system.

He said the "small claims" process is a simple procedure intended for the average citizen to use on their own, potentially saving thousands of dollars in lawyer fees.

"It's intended to be an easier process. It's intended to be easier for the average person to come in and represent themselves without a lawyer."

He said the majority of small claims cases involve debt collection. The legislation covers any claims up to $5,000, but there are some notable restrictions.

For instance, McKay said, don't bother trying to sue for breach of promise to marry if you live in the NWT.

"I'll bet you didn't know, if the wedding dress cost you $4,000 and the guy left you at the altar you can't sue him" in territorial court, McKay said. He said that last year there were 177 claims in the NWT's version of small claims court.

The NWT Justice Department also has an distinct legislated avenue for tenants and landlords. A rental officer will consider both sides of the disputes that are brought before them and if they can't find an agreeable settlement through mediation they'll hold a hearing. The rental officer acts as judge and often files a written order with the territorial court system after they reach a decision.

Rental officer Hal Logsdon said about three-quarters of the disputes that landlords bring are over unpaid rent. He said that tenants complain most about issues involving unreturned security deposits.

"I guess it's no surprise," he said.

He said 426 applications for rental mediation were filed in 2002 and 271 actually went through the hearing process and resulted in court orders. He said there's no obvious correlation between the latest rise in the red-hot rental market and the amount of disputes filed.

"We were a bit busier than the year before," he said.

Getting the ball rolling

Both systems simply require the applicant to fill out the proper form.

McKay said the small claims process is pretty simple to initiate.

"There are forms you fill in, you come into the court registry here, or in Inuvik or Hay River, then you just have to serve it or arrange to have it served on the other person.

The NWT's small claims court limit is on the lower end of the scale compared to other provinces. McKay said he was unsure if it would change in the near future.

Alberta raised its limit for small claims to $25,000 last November, while British Columbia and Ontario have a ceiling of $10,000.

"The dollar amount is something that all kinds of jurisdictions are looking at," said McKay. "It's a good question, whether you should put the dollar amount up."

"You have to look at whether it's a good idea to have a person in court without a lawyer, depending on the type of lawsuit, as the dollar figure goes up."

If you're disputing an amount above $5,000 you have to do it in the Supreme Court system, said McKay.

"It's much more difficult for a person to do that without a lawyer," he said.

In an ideal world

While the system can be useful, McKay said, it would be ideal if people didn't have to use it as much.

"It's intended for these smaller things," he said. "It's highly desirable for people to stay out of courts if they can settle outside. Going to court should be the last resort, in my view."