That is a good question. In Small Claims Court you can only sue for $35,000 so why would you sue there when you are owed $40,000 for example? It may be a good idea to limit your claim to $35,000 in the Small Claims Court because you will save far more than $5,000 in legal fees by having your case proceed in the Small Claims Court. Cases are more expensive to try in the higher court. The cost-benefit analysis favours the Small Claims Court in this case. In addition, the case will proceed much faster in the Small Claims Court than in the higher court.