Preparing for a Small Claims Court Settlement Conference

A settlement conference is a required step in most contested Small Claims Court cases, and it's easy to underestimate — some people treat it as a formality on the way to trial. In reality, a meaningful share of cases resolve at or shortly after this stage, which makes real preparation worth the effort.

What actually happens at a settlement conference

A settlement conference is an informal, private meeting — not a public trial — generally held in a meeting room rather than a courtroom. A judge presides over it, but the goal isn't to decide who's right; it's to help both sides understand the strengths and weaknesses of their positions and explore whether the case can be resolved without going to trial.

Discussions at a settlement conference are generally treated as without prejudice, meaning what's said in the room usually can't be used against you later at trial if the case doesn't settle. This is meant to encourage both sides to speak candidly about settlement.

Who attends

Typically, the plaintiff and defendant both attend, along with a judge. Either side may be represented by a lawyer or licensed paralegal. If a party doesn't attend without a good reason, that can have consequences for how the case proceeds — so treat the conference date as mandatory, not optional.

What to bring

• A copy of the claim and defence, so you can refer to the specific allegations on both sides.
• Key documents supporting your position — contracts, invoices, photos, correspondence — organized so you can find what you need quickly.
• A written summary of your position (see below) so you can present it clearly without relying on memory.
• A calculator or worked-out numbers if your claim involves interest or multiple amounts, so you can respond to settlement figures on the spot.
• A realistic settlement range you've thought through in advance, rather than deciding on the fly.

Prepare a clear summary of your case

Before the conference, write a short, plain summary of your position: what happened, what you're asking for (or disputing), and why. Aim for something you could read aloud in two or three minutes. This does double duty — it forces you to organize your thoughts, and it gives the judge a clear, quick understanding of your side when the conference begins.

Avoid emotional or accusatory language. Judges at this stage respond better to a clear, factual account than to a account focused on how frustrated or wronged you feel — save that energy for staying calm and focused on the facts.

Think through your numbers beforehand

Walk in with a sense of three numbers: the amount you'd be satisfied with, the amount you'd accept if pushed, and the point below which you'd rather go to trial. Having this worked out in advance means you're negotiating from a plan rather than reacting under pressure in the room.

If you're the defendant, do the same in reverse — know what you're willing to pay (if anything), and what would make trial the better option for you instead. The settlement vs. court calculator is a useful way to work through that comparison with real numbers before you walk in.

How to negotiate effectively in the room

You don't need formal negotiation training to do this well — a few habits go a long way:

• Start with your strongest, most factual point, not your angriest one. A judge and the other side both respond better to substance than tone.
• Ask questions, not just make statements. Understanding why the other side is holding firm on a number often reveals room to move that a flat demand doesn't.
• Make concessions deliberately, not reflexively. If you move off your number, connect it to something — "I'll come down to X if we can agree on Y" — rather than simply dropping your position.
• Don't confuse a good outcome with a perfect one. A settlement that's worse than your ideal number but better than the cost, time, and risk of trial is often still the right call.

Tips for plaintiffs vs. defendants

The core preparation is the same for both sides, but the emphasis differs slightly depending on which side of the case you're on.

• If you're the plaintiff, be ready to justify your claimed amount specifically — a number that's clearly documented is far more persuasive than a round figure. Also be honest with yourself about weak points in your case; the settlement conference is a good place to test them before trial does.
• If you're the defendant, come prepared to explain specifically what you dispute and why, not just that you disagree. If you're willing to pay something, decide that amount before you arrive rather than negotiating against yourself in the room.

The judge's role at this stage

The judge at a settlement conference is generally there to facilitate, not to decide the case. They may ask pointed questions about the strengths and weaknesses of each side's position, point out risks either side might be underestimating, and help float settlement ideas. Some judges are quite direct about their views on a case's likely outcome — this isn't a decision, but it's often useful information worth taking seriously when you're weighing whether to settle or proceed to trial.

Common outcomes

• Full settlement. Both sides agree on an amount and terms, and the case ends without a trial.
• Partial settlement. Some issues are resolved, narrowing what's left to argue about if the case proceeds.
• No settlement, but clarity. The case continues, but both sides often leave with a clearer sense of what trial will actually involve.
• Procedural directions. The judge may also use this stage to set timelines or address other procedural matters before trial.

If the case doesn't settle

If you don't reach an agreement, the case moves toward trial. Anything discussed at the settlement conference generally can't be used as evidence at trial, so you're not penalized for having negotiated openly. Use what you learned about the other side's position — and the judge's reaction to certain points — to sharpen your preparation. See preparing for trial for next steps.

It's also worth revisiting your settlement position again closer to trial. As trial preparation clarifies exactly what evidence you have (and what you don't), your sense of the case's real strength may shift — and a further settlement discussion, even informally, is often still worth having before committing fully to trial.

Practical tips and etiquette

• Arrive early and bring extra copies of any documents you plan to reference.
• Dress and behave as you would for any court appearance — it's informal in format, not in expectations.
• Listen as much as you speak. Understanding the other side's actual concern sometimes reveals a settlement path you hadn't considered.
• Stay flexible on structure, not just amount — payment plans or non-cash terms can sometimes bridge a gap that a single lump sum can't.
• Don't feel pressured to agree on the spot if you need a moment to think — but understand that unresolved cases do proceed toward trial.

Common mistakes to avoid

• Treating it as a formality and showing up unprepared.
• Not bringing key documents, then being unable to support a point raised in the room.
• Refusing to consider any settlement out of principle, without weighing the real cost and risk of proceeding to trial.
• Not attending, or attending without authority to negotiate (for example, a representative who can't actually agree to a number).
• Oversharing emotionally instead of sticking to a clear, factual account.

Frequently asked questions