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Settlement Conference: a Mandatory Meditation Hearing Prior to Trial
Question: What is the purpose of a Settlement Conference in Small Claims Court?
Answer: A Settlement Conference provides a structured opportunity for parties to clarify issues and negotiate a resolution, potentially saving time and legal costs while reducing stress associated with a trial.
Attempting to Resolve the Dispute Without Adjudication
A mandatory step within the Small Claims Court process involves a mandatory hearing known as Settlement Conference. The Settlement Conference hearing is scheduled following the filing of a Defence pleading by the Defendant (or first Defendant if there is more than one), and is generally scheduled within ninety (90) days after this filing. The process ensures that parties are provided with an opportunity to discuss the issues and possibly to resolve the dispute without proceeding to a judicial Trial.
Purpose & Benefits
he Settlement Conference is a mandatory stage in a Small Claims Court proceeding intended to promote resolution without the need for a full trial. It provides an opportunity for the parties to engage in candid discussions about the issues in dispute, facilitated by a Deputy Judge. The conference allows each party to better understand the strengths and weaknesses of their case, clarify the matters in issue, and explore potential avenues for settlement. Additionally, the conference serves as a case management tool, ensuring that the litigation process moves efficiently toward resolution or Trial. The benefits of the Settlement Conference process include:
- For the Parties;
- To encourage early resolution and reduce time and legal expenses;
- To provide a neutral forum for clarifying misunderstandings and narrowing issues;
- To offer judicial insight into the strengths and weaknesses of each party’s position;
- To reduce emotional stress and improve confidence in the process;
- For the Administration of Justice;
- To alleviate court backlog by diverting cases from trial;
- To streamline trial preparation through issue simplification and procedural direction;
- To enhance judicial efficiency by identifying and resolving matters early;
- For the General Public;
- To promote confidence in the accessibility and fairness of the justice system;
- To conserve judicial resources for complex or high-stakes litigation; and
- To support timely access to justice by reducing delays across the system;
Requirements & Expectations
Parties attending a Settlement Conference in Small Claims Court are required to approach the process with thorough preparation and genuine openness to meaningful discussion. Each party must serve and file all documents intended to be relied upon, including evidence and witness lists, at least fourteen (14) days before the conference date, unless otherwise directed. This advance disclosure promotes efficiency and fairness by allowing both sides to understand the scope and nature of the alleged facts, the claims, the defences, and thereby the respective positions of each party. Beyond procedural compliance, parties are expected to attend the Settlement Conference with an open mind and a willingness to engage in good faith negotiations. This expectation of good faith negotiation includes a readiness to agree on certain facts where possible, narrow the issues in dispute, and potentially resolve the matter on terms crafted and accepted by the parties — rather than through a binding decision imposed by a Judge court following a Trial. In summary, the key requirements are:
- To serve and file all intended evidence and witness lists at least fourteen (14) days in advance;
- To ensure that all disclosed documents are complete, organized, and legible;
- To attend the conference fully informed of the case theory and legal issues;
- To approach the discussion with an open mind and an attitude of civility;
- To demonstrate willingness to agree on uncontested facts;
- To engage in settlement talks that may lead to resolution without a Trial; and
- To consider the advantages of a mutually-agreed outcome over a judicially imposed Judgment.
Interesting, the requirement to attend Settlement Conference with an open mind is an expressly founded obligation whereas such was judicially stated as follows:
[20] There is an obligation on litigants to prepare for and attend a settlement conference with a mind open to the position of the opposing litigant, and the views of the presiding judge. Failure to do so thwarts the legitimate purposes and objectives of the settlement conference, and wastes the time and money of all involved. In such circumstances, an order for costs may well be warranted. On the other hand, parties to an action are entitled to maintain their positions during a settlement conference, and to have the matter proceed to trial. They are under no obligation to accept a settlement proposed by an opposing litigant, or the presiding judge, and are under no obligation to compromise. If, in the present case, the costs order was made solely because the Applicants failed to better their initial settlement offer, then it was made in error, but such an error would not amount to a breach of procedural fairness. Again, the difficulty with the Applicants’ argument is that we are being asked to undertake a substantive review of the merits of the costs order.
Challenges & Difficulties
Although the Settlement Conference process is designed to promote early resolution, several common challenges may interfere with its effectiveness. Disputes often persist due to hardened positions, incomplete preparation, or communication failures. These difficulties may delay resolution, increase costs, or necessitate a full trial. Recognizing and addressing these challenges in advance is essential to making the most of the conference opportunity.
- To overcome entrenched positions that limit flexibility and compromise;
- To clarify misunderstandings about the opposing party’s claims and defences;
- To prepare thoroughly for trial in case settlement is not reached;
- To avoid increased costs and delays resulting from insufficient readiness;
- To ensure accurate and complete sharing of relevant information; and
- To minimize negotiation failure caused by miscommunication or assumptions.
Conclusion
Through informed participation within the Settlement Conference process, parties benefit greatly from understanding potential outcomes and from strategic preparation. Such understanding enhances decision-making, potentially settling disputes efficiently and reducing the requirement for lengthy, and costly, litigation.
