1. Compare a workable agreement with the trial risks
List what you can prove, what remains uncertain, the realistic amount recoverable and the time and expense of continuing. Consider non-money terms such as returning property or exchanging records. A defendant should distinguish a proposal based on limited means from a denial of liability; a plaintiff should assess collectability as well as the claim’s merits.
Keep settlement discussions separate from your evidence about the underlying events. Do not delete admissions or records from the original transaction merely because later negotiations occurred. Privilege and confidentiality depend on context; adding a label does not make every communication protected.
Official reference: Ontario: getting ready for court
2. Make and assess a written offer
Either side can make an offer before the court finally disposes of the case. Form 14A is available for an offer, 14B for acceptance and 14C for withdrawal. Specify the amount, whether interest and costs are included, the payment date, how acceptance occurs and any expiry. Read the Rules before withdrawing an offer or accepting with changes.
Rule 14 costs consequences can arise from a qualifying written offer served at least seven days before trial, depending on its continued availability and the trial result. The court retains discretion. Do not assume every rejected email automatically produces double costs. Keep the offer and proof of service for the costs stage.
Official reference: Rules of the Small Claims Court, O. Reg. 258/98
3. Write down the complete settlement
Use clear signed terms, including the parties, court file number, claims resolved, amount and dates, payment method, interest or costs, return of property, releases and what happens after default. Terms of Settlement, Form 14D, can help record an agreement. If there is a defendant’s claim, say whether it is also resolved.
Consider whether a dismissal, discontinuance, consent judgment or other court step is appropriate and when it should occur. Do not casually discontinue before receiving promised payment without understanding the risk. Obtain advice about broad releases, confidentiality, tax terms or enforcement clauses you do not understand.
Official reference: Official Small Claims Court forms
4. Tell the court and complete the agreement
Notify the court of a concluded settlement and complete the required filing, especially if a hearing is scheduled. A private agreement does not itself cancel every court date. Keep proof of payment and deliver the promised releases, property or court documents.
Unaccepted offers should not be filed or shown to the trial judge before liability and relief are determined; costs are dealt with afterwards. If a party breaches an accepted settlement, check Rule 14.06 and the agreement before choosing the enforcement route. Do not automatically restart the original case or seize property yourself.
Official reference: Courts of Justice Act, including sections 29 and 31
Your next-step checklist
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General information for Ontario, not advice about your case. Legislation, court orders and current court directions govern. Get help with your situation.