Enforcing Judgments in Ontario: Using an Examination in Aid of Execution

You have won your case and have a judgment in hand. Surely turning it into actual money should be straightforward.

Not always. Often a judgment creditor does not know where the debtor banks, where they work, what property they own, or whether they have other assets that can be used to satisfy the judgment.

That is where an examination in aid of execution comes in. Available under Rule 60.18 of Ontario’s Rules of Civil Procedure, it is a tool judgment creditors use to find out what is available to collect against and how best to collect it. Searches and third-party investigators can also locate this information, but a debtor examination can provide it all at once. What the creditor learns may help determine whether garnishment, writ of seizure and sale, or another enforcement method is the right next step.

Examining the Judgment Debtor or the People Behind a Corporate Debtor

Rule 60.18(2) of the Rules of Civil Procedure lets a judgment creditor examine the debtor under oath, usually before a court reporter, about:

1. the reason for nonpayment or non-performance of the order;
2. the debtor’s income and property;
3. the debts owed to and by the debtor;
4. the disposal the debtor has made of any property, either before or after the order was made;
5. the debtor’s present, past, and future means to satisfy the order;
6. whether the debtor intends to comply with the order, or has any reason for not doing so; and
7. any other matter pertinent to the enforcement of the order.

If the judgment debtor is a corporation or a partnership, Rule 60.18(3) allows the creditor to examine a director, officer, or partner on its behalf about the same matters.

Can Someone Other Than the Debtor Be Examined?

Yes, with leave of the court. Under Rule 60.18(6), a creditor may examine a third party who may have knowledge of the debtor’s income, property, or financial affairs. This is useful where another person or entity appears to hold information that could help locate assets or determine how the judgment can be enforced. To obtain leave, the creditor brings a motion showing that the person likely has relevant knowledge.

The Small Claims Court Equivalent

Small Claims Court litigants have a similar tool. Under Rule 20.10 of the Rules of the Small Claims Court, where there has been default under an order for the payment or recovery of money, a creditor may request an examination of the debtor or, where the debtor is a corporation, an officer or director examined on its behalf. The examination may cover the debtor’s income, property, debts, disposal of assets, and ability to satisfy the judgment.

What Happens If the Debtor Does Not Show Up at the Examination?

Under the Rules of Civil Procedure, the creditor obtains a certificate of non-attendance from the court reporter and brings a motion under Rule 34.15 to compel the debtor’s attendance. A debtor who still fails to attend is disobeying a court order, and the creditor may bring a contempt motion under Rule 60.11. A judge can then impose penalties ranging from a fine to imprisonment, separate and apart from the underlying debt.

In Small Claims Court, the process is similar, but the consequences are capped. Under Rule 20.11, a non-attending party can be brought before the court for a contempt hearing.

A judgment is only valuable if it can be enforced.

If you have obtained a judgment but have not been paid, StellarEdge Law Firm can help you identify the debtor’s assets, assess the available enforcement options, and develop a focused strategy for recovery. We assist judgment creditors with examinations in aid of execution, garnishments, writs of seizure and sale, and other enforcement remedies throughout Ontario. Contact us to discuss your judgment and the practical steps available to turn it into meaningful recovery.