Every Ontario Small Claims Court case must pass through a settlement conference before it can proceed to trial. For many litigants, this is the most important step in the entire process — and the one they are least prepared for. A settlement conference is not just a bureaucratic box to tick. It is a genuine opportunity to resolve your dispute without the cost, stress, and uncertainty of a trial.
1. What Is a Settlement Conference?
A settlement conference is a private, informal meeting between the parties and a deputy judge (a lawyer appointed to hear small claims matters). Unlike a trial, the conference is not open to the public and is conducted in a relaxed, conversational format.
The conference has two main goals:
- Settlement — to see if the parties can agree to a resolution without going to trial
- Case management — if settlement fails, to clarify the issues in dispute, identify relevant evidence, and set a trial date
Most settlement conferences last between 30 minutes and two hours, depending on the complexity of the case. The conference is conducted off the record — what is said in the room generally cannot be used as evidence at trial.
2. How to Prepare for Your Settlement Conference
Preparation is everything. The parties who walk into a settlement conference organized, calm, and clear on their best and worst case scenarios are the ones most likely to reach a favourable resolution.
Assemble your evidence binder
Organize all relevant documents in a binder with numbered tabs: contracts, invoices, receipts, photos, emails, text messages. Bring three copies — for the judge, the other party, and yourself.
Write a one-page brief
Summarize your position in one page or less: what happened, what you are claiming, and why the law supports you. Reference your exhibit tabs. The deputy judge will read this before speaking to you.
Know your numbers
Calculate your total claim precisely: principal amount, pre-judgment interest, and filing fees. Know the minimum you would accept to settle today and the maximum you realistically expect to receive at trial.
Identify weaknesses in your case
The deputy judge may point out problems with your evidence or legal theory. Thinking about this in advance lets you respond calmly rather than being caught off guard.
Consider your settlement range
Going to trial costs time and money even in Small Claims Court. Know what a fair settlement looks like, and be ready to negotiate — without revealing your bottom line until necessary.
3. What Happens at the Settlement Conference
When you arrive at the courthouse, check in with the court clerk. You will be directed to a conference room or small hearing room. The deputy judge will introduce themselves and briefly explain the process.
Stage 1: Opening Statements
Each party (or their representative) gives a brief summary of their position. Keep this concise — two to three minutes. State the facts, the amount claimed, and your key evidence. Do not give a speech.
Stage 2: Document Review
The judge reviews the evidence both parties have brought. This is when your organized binder pays dividends — a well-tabbed package signals credibility and allows the judge to quickly grasp your case.
Stage 3: Discussion and Recommendations
The deputy judge will often share their preliminary assessment. This is not a binding ruling, but it is a candid, experienced view of the merits of each side. Listen carefully — this is valuable information about how a judge might rule at trial.
Stage 4: Negotiation
The judge often speaks to each party privately (called a "caucus") to explore whether a settlement is possible. Be honest with the judge about your priorities. They are there to help facilitate a deal, not to judge you.
Stage 5: Settlement or Trial Date
If a settlement is reached, the parties sign a Terms of Settlement form. If no settlement is reached, the judge sets a trial date and makes procedural orders about evidence disclosure and witness lists.
4. Possible Outcomes of the Settlement Conference
| Outcome | What It Means | Next Step |
|---|---|---|
| Full settlement | Both parties agree on all terms | Sign Terms of Settlement; court file closed |
| Partial settlement | Some issues resolved, others remain | Record agreed terms; proceed to trial on remaining issues |
| No settlement | Parties cannot agree | Trial date scheduled; judge makes procedural orders |
| Dismissed (plaintiff absent) | Plaintiff did not attend | Claim may be dismissed; re-open on motion |
| Default judgment (defendant absent) | Defendant did not attend | Judgment may be granted against defendant |
5. Negotiation Strategy at the Settlement Conference
Settlement conferences are a negotiation. Like any negotiation, preparation and psychology matter as much as the law.
- Open slightly above your ideal outcome — leave room to compromise without going below your acceptable minimum
- Focus on interests, not positions — if the other side needs time to pay rather than a reduced amount, a payment plan may satisfy both parties
- Use the judge's assessment strategically — if the judge signals that the defendant has a weak defence, that reinforces your negotiating position
- Consider the cost of trial — factor in additional preparation time, lost income from attending, and the stress of trial when deciding whether to accept a settlement offer
- Do not make your final offer first — let the other side make the first move where possible
6. The Terms of Settlement
If the parties reach an agreement, the deputy judge or court clerk will prepare a Terms of Settlement document. Both parties sign it. Once filed with the court, the terms are enforceable as a court order.
A well-drafted terms of settlement should include:
- The full legal names of all parties
- The exact amount to be paid and by whom
- The payment deadline or schedule
- Whether the claim and any counterclaim are dismissed on signing or on payment
- A clause addressing what happens if payment is not made (e.g., judgment for the full amount is immediately enforceable)
Frequently Asked Questions
What happens at a Small Claims Court settlement conference in Ontario?
At a settlement conference, a deputy judge meets with both parties to explore whether the case can be settled without a trial. The judge reviews evidence, identifies issues, and may make recommendations. Both parties must attend and bring all relevant documents.
Is attendance at a settlement conference mandatory in Ontario Small Claims Court?
Yes. Attendance is mandatory for all parties (or their authorized representatives). If you fail to attend without a valid reason, the judge can dismiss your claim, grant judgment against you, or strike your defence.
Can the settlement conference judge decide my case?
Not usually. The settlement conference judge makes recommendations but cannot impose a final judgment unless both parties consent to a binding order. If the case does not settle, it proceeds to trial before a different judge.
What documents should I bring to a settlement conference?
Bring all documents relevant to your claim: contracts, invoices, receipts, emails, text messages, photos, and any expert reports. Organize them in a labelled binder with numbered tabs. Bring three copies — one for the judge, one for the other party, one for yourself.
What is a terms of settlement in Small Claims Court?
A terms of settlement is a written agreement signed by both parties at or after the settlement conference that resolves the dispute. Once signed and filed with the court, it can be enforced as a court order if one party fails to comply.
What happens if we do not settle at the settlement conference?
If no settlement is reached, the deputy judge will set a trial date and may make orders about evidence disclosure, witness lists, and other pre-trial steps. The case then proceeds to a full trial before a different judge.