The settlement
conference.

By Jonathan Kleiman, Barrister & Solicitor · Published May 2026

What is a settlement conference?

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. In that sense it shares the same goal as private mediation and arbitration — settling the matter rather than fighting it out.

Settlement conferences are governed by Rule 13 of the Rules of the Small Claims Court. Both parties (or their lawyers) must attend in person at the court office where the claim was filed. 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. If you are weighing whether to handle it on your own, read our guide on representing yourself in Small Claims Court before deciding. It is also one of the key reasons that Small Claims Court is worth it for many disputes.

What happens at the settlement conference

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.

Step 1: The judge reviews the materials

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.

Step 2: Each side presents their position

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. If you are the one defending the claim, the settlement conference is also your chance to test the plaintiff's case; our guide for when someone is suing you in Small Claims Court walks through how to prepare.

Step 3: The judge gives a preliminary assessment

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:

• "Based on what I've seen, the plaintiff has a strong case on liability."
• "The defendant's evidence on this point is weak."
• "The damages claim appears inflated — here is what a trial judge would likely award."
• "Both sides have risk here — a settlement in the range of X would be reasonable."

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.

Step 4: Negotiation

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.

Step 5: If no settlement is reached

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. Be aware that reaching a trial date adds months to the timeline; see how long Small Claims Court takes in Ontario for realistic expectations.

How to prepare for your settlement conference

Preparation is the single biggest factor in whether the settlement conference produces a good outcome.

File a strong settlement conference brief

Your brief is the judge's first (and sometimes only) look at your case. It should:

• Summarize the facts clearly and chronologically
• Identify the key legal issues
• List the evidence you intend to rely on at trial
• State the amount you are claiming (or the amount you dispute)
• Describe any previous settlement attempts

A disorganized or incomplete brief signals to the judge that you are unprepared — and weakens your negotiating position.

Bring your evidence

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.

Know your number

Before walking into the settlement conference, decide:

• What is the full amount you believe you are owed — including pre-judgment interest and court costs?
• What is the minimum amount you would accept to settle?
• What are the risks if you go to trial?
• What are the costs of continuing to trial?

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.

Have authority to settle

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.

Common mistakes at the settlement conference

• Not filing a brief — some parties skip the brief entirely. This frustrates the judge and weakens your position.
• Being emotional or argumentative — the settlement conference is not the time to vent. Be factual, concise, and professional.
• Refusing to negotiate — the judge's role is to facilitate settlement. Showing up with an "all or nothing" attitude signals that you are unreasonable and may affect how the judge perceives your case.
• Ignoring the judge's assessment — the judge's preliminary view is not guaranteed, but it is an informed prediction of how a trial will go. Dismissing it entirely is unwise.
• Not having authority to settle — if you cannot agree to terms at the conference, the opportunity to settle may pass.
• Going without a lawyer — the other side may have one, and the negotiation dynamics are immediately lopsided. If you are the defendant, a Small Claims Court defence lawyer levels the table.

The best settlements happen when both sides leave the room slightly unhappy — but relieved that the matter is resolved.

What the settlement conference judge can and cannot do

The judge can:

• Provide a non-binding assessment of the case
• Facilitate negotiation and suggest settlement ranges
• Make procedural orders (document disclosure, witness lists, deadlines)
• Record a consent order if both parties agree to a settlement
• Schedule the case for trial
• Award costs against a party who fails to attend

The judge cannot:

• Make a binding decision on the merits of the case
• Force either party to accept a settlement
• Hear testimony or make evidentiary rulings
• Preside over the trial (the trial judge will be different)

After the settlement conference

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.

Frequently asked questions

Is the settlement conference mandatory in Ontario Small Claims Court?

Yes. A settlement conference is mandatory in every defended Small Claims Court action. It must take place before a trial date is scheduled — and requesting that trial date carries the single largest fee in the case ($308, or $403 for frequent claimants). Use the filing fee calculator to budget it before the conference.

Who presides over the settlement conference?

A judge or deputy judge. This is not the same judge who will hear your case at trial.

Can the judge make a decision at the settlement conference?

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.

What happens if I do not attend the settlement conference?

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.

Should I bring a lawyer to the settlement conference?

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.

Get ready for your settlement conference

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.