Understanding the Small Claims Court Settlement Process

Published by:
Aisha Patel

Reviewed by:
Alistair Vigier
Last Modified: 2024-06-14
The point of the small claims court settlement conference is to meet with a provincial court judge to discuss the issues. As the name implies, there will also be talks about a settlement at the conference. The person who wants money is the claimant.
The person who is being asked for money is the defendant. The defendant is the respondent, but you can choose whatever you prefer. Going to trial can be expensive and stressful. That’s why 66.6% of cases are resolved without going to court in the provincial court.
In the Supreme Court, 97% of cases do not make it to trial. More cases go to court in small claims because most people do not have a lawyer.
Many people hire a lawyer to represent them in small claims trials. If you need a lawyer or paralegal to handle your small claims, contact us below.

The Settlement Procedure in Small Claims Court
For some reason, the conference is required anywhere in BC, with the exception of downtown Vancouver. The public or media is not allowed to attend the meeting. If the person who filed the claim doesn’t attend the small claims court settlement conference, the judge will likely rule in favour of the defendant. The reverse is true if the defendant does not show up.
If the parties cannot agree to settle, the judge will likely order a trial date. Before the matter goes to trial, it is possible to ask for a pre-trial conference to confirm that all evidence has been shared between the parties.
Even though the settlement conference is not the trial, you must be ready for the conference. You won’t have to have witnesses ready, but you must have your documents.
You should be able to answer the judge’s questions in detail. The judge will likely get angry if you do not have the answers ready. You never want to upset the judge.
You can also ask the judge how to prepare for the trial. This judge will not be the same as the trial judge. However, the judge you will meet during the small claims settlement conference does small claims trials.
Steps to Prepare Effectively for Your Small Claims Settlement Meeting
You could have had this judge. Therefore, it’s a great way to ask questions in a non-formal way.
While the settlement conference is not the trial, you must have your position ready to explain. For example, you should know the dates when things happened.
You should also understand what the other person’s position is. It will be hard to explain why you are right if you don’t know what the other person is saying.
The judge is going to want you to settle. They will point out the reasons why the party’s cases are weak. They do this to make it more likely for each to pay. It’s stressful when a judge tells you you are missing a key piece of evidence.
The best thing you can take away from the settlement conference is what the judge wanted you to prove. Also, take note of what they wanted the other side to confirm. You can focus on these critical areas when getting ready for trial.
You might come to the conference with ten things you must prove and leave with only two. It’s common to find that the parties agree on most of the facts. However, there is likely one of two things the party cannot agree on.
What are the best ways to settle a small claims lawsuit?
A small claims lawsuit might seem daunting, but settling one doesn’t have to be an enigma. Many see a courthouse as the sole destination. But before that step, numerous alternatives exist.
Start by examining the claim’s basis. Knowing the merits of the case, as well as potential weaknesses, gives you an edge. Be honest. If your case doesn’t hold water, reconsider pursuing it.
Face-to-face dialogue with the other party can bring surprises. Sometimes, misunderstandings spark disputes. Clarify the grievance, explain your stance, and listen to theirs. An informal conversation might mend bridges.
Mediation serves as a constructive middle ground. This involves a neutral third party helping both sides reach a compromise. It’s not binding. If an agreement isn’t achieved, you can still proceed to court. But, mediation is less adversarial, often resulting in win-win outcomes.
The Role of a Mediator in Facilitating Settlement Conferences
Documentation speaks volumes. Maintain records of all discussions. If there’s a verbal agreement, put it in writing. This will help prevent future disputes.
In some cases, attorneys can negotiate on your behalf. While the aim is to steer clear of courtrooms, a lawyer’s perspective provides invaluable insight. They understand the nuances of legal arguments and can communicate them adeptly.
Involving lawyers has a flip side. Costs increase. Hence, weigh the benefits against potential expenses. If the claim is minimal, shelling out for professional advice might outweigh the benefits.
A legal perspective is undeniably valuable. Attorneys, with their trained eyes, often spot pitfalls that laypeople overlook. They can also assess if the claim’s amount makes sense or needs revisiting.
Resolving Disputes: The Small Claims Court Settlement Process
In any negotiation, remain open to compromise. Rigid positions can be a roadblock. Reaching a middle ground expedites resolutions. However, that doesn’t mean you have to accept an unfair deal. Strike a balance.
Transparency plays a critical role. Hidden agendas or insincerity can hinder any negotiation. Being upfront about your intentions fosters trust. It makes the other party more receptive to your points.
Some prefer email for its traceability. An email thread provides a clear record of the dialogue and can serve as evidence if matters escalate. But remember, the tone often gets lost in written communication. Be clear and direct and avoid ambiguities.

How Settlement Conferences Differ from Traditional Small Claims Hearings
Consider the time factor. Dragging a small claim can sap resources, not just monetary but also emotional. Prolonged disputes create stress. On the other hand, quick resolutions allow all involved to move on.
When pondering an offer, assess its fairness. Is it reasonable in light of the claim’s merits? What about in comparison to potential court awards? Remember, court proceedings aren’t just about winning. They demand time, effort, and, sometimes, personal appearances. Weigh the pros and cons.
If you do opt for a courtroom route, prep diligently. Understand local procedures, deadlines, and requirements. Some courts might mandate mediation before a hearing. Know these rules.
It’s also important to be proactive. Waiting for the other party to make the first move might not be in your best interest. Taking the initiative showcases your dedication to resolving the issue.
Settling a small claims lawsuit hinges on a mix of strategy, flexibility, and sound judgment. The aim is not merely winning but achieving an equitable solution with minimal hassle. Contact us to learn more about small claims court settlements.
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