Your settlement conference is scheduled. Here is exactly what happens, how to prepare, what the judge will do, and how to negotiate the best possible outcome.
By Jonathan Kleiman, Barrister & Solicitor · Published May 2026
A settlement conference is a mandatory meeting that takes place in every defended Small Claims Court action in Ontario before the case can proceed to trial. It is conducted by a judge or deputy judge — not the trial judge — and its purpose is to explore whether the dispute can be resolved without a trial.
Settlement conferences are governed by Rule 13 of the Rules of the Small Claims Court. Both parties (or their lawyers) must attend. Failing to attend can result in your claim being dismissed or a default judgment being entered against you.
A significant percentage of Small Claims Court cases settle at the settlement conference. It is one of the most important stages in the entire process — and one that many self-represented parties underestimate.
The settlement conference is not a trial. No witnesses testify and no formal evidence is presented. Instead, the judge reviews each side's position and facilitates a discussion aimed at reaching a resolution.
Before the conference, both parties file a settlement conference brief summarizing their position, the key facts, the applicable law, and the evidence they intend to rely on at trial. The judge reads these briefs before the conference begins.
The judge asks each party (or their lawyer) to summarize their case. This is your opportunity to explain — concisely — what happened, what you are owed (or why you do not owe anything), and what evidence supports your position.
This is the most valuable part of the settlement conference. The judge provides a preliminary, non-binding assessment of the strengths and weaknesses of each side's case. The judge may say things like:
This assessment is not binding — the trial judge may see things differently. But it is an experienced judicial officer's honest read of the case, and it carries significant weight in settlement discussions.
After the assessment, the judge facilitates negotiation between the parties. This may happen with everyone in the same room, or the judge may speak with each side separately to explore settlement ranges.
If the parties reach an agreement, the terms are recorded on the court file and become a consent order — enforceable like any court judgment.
If the parties cannot agree, the judge schedules the case for trial. The judge may also make procedural orders — such as requiring disclosure of documents, setting deadlines for witness lists, or amending the pleadings.
Free 30-minute consultation with a Toronto business lawyer.
Preparation is the single biggest factor in whether the settlement conference produces a good outcome.
Your brief is the judge's first (and sometimes only) look at your case. It should:
A disorganized or incomplete brief signals to the judge that you are unprepared — and weakens your negotiating position.
While the settlement conference is not a trial, bringing organized copies of your key documents — contracts, emails, invoices, photographs — allows you to reference them when the judge asks questions. It also demonstrates that you are ready for trial, which strengthens your negotiating position.
Before walking into the settlement conference, decide:
Settlement is a business decision, not an emotional one. A Small Claims Court lawyer can help you assess the realistic value of your claim and negotiate from a position of strength.
If you are representing a business, make sure the person attending has the authority to agree to a settlement on the spot. Judges are frustrated by parties who say "I need to go back and check with my boss." If the decision-maker cannot attend, they must be reachable by phone.
The best settlements happen when both sides leave the room slightly unhappy — but relieved that the matter is resolved.
If you settle, the terms are recorded as a consent order. If the other party does not comply with the settlement terms, you can enforce the consent order the same way you would enforce a judgment — through garnishment, seizure, or an examination hearing.
If you do not settle, the case is scheduled for trial. You will need to prepare your evidence, organize witnesses, and be ready to present your case. See the full step-by-step guide to suing in Small Claims Court for what to expect at trial.
Yes. A settlement conference is mandatory in every defended Small Claims Court action. It must take place before a trial date is scheduled.
A judge or deputy judge. This is not the same judge who will hear your case at trial.
No. The settlement conference judge cannot make a binding decision on the merits. However, if both parties agree to a settlement, the judge can record the agreement as a consent order, which is enforceable.
If the plaintiff does not attend, the claim may be dismissed. If the defendant does not attend, they may be noted in default. Costs may be awarded against the absent party.
Having a Small Claims Court lawyer at the settlement conference significantly strengthens your position. The judge gives a preliminary assessment, and a lawyer can use that assessment to negotiate the best possible outcome.
The settlement conference is your best opportunity to resolve your dispute without the cost and uncertainty of trial. Preparation and strategy make the difference between a good outcome and a missed opportunity.
Call 416-554-1639 or book a free consultation.
Preparation is the difference between a good settlement and a missed opportunity. Free 30-minute consultation with a Toronto Small Claims Court lawyer.