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Do small claims have any bearing on legal precedent? Could someone site the legal reasoning in this case to also sue Google for their small claims, or even higher amounts?

No, (at least in Canada) they do not. Small claims is not judged by a "real" judge and those courts do not have the ability to set precedent. Same with most traffic courts. Of course you can always bring up the judgment in another small claims court, just won't be taken as rule of law.

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