The appellants appealed a Small Claims Court decision awarding the respondent $35,000 for unpaid trailer fees under an agency agreement.
The respondent had sued for only three of seven outstanding invoices to stay within the Small Claims Court's monetary jurisdiction, intending to bring a second action for the remainder.
The Divisional Court held that the right to trailer fees flowed from a single contract, meaning the separate invoices did not constitute separate causes of action.
By splitting the claim to fit within the monetary limit without waiving the excess, the respondent engaged in impermissible cause of action splitting.
The Divisional Court quashed the Small Claims Court decision as a nullity for lack of jurisdiction and ordered the matter to proceed as a Simplified Rules action in the Superior Court of Justice.