BC Small Claims Mediation Under Rule 7.3: When It Applies and How It Works

What Rule 7.3 Mediation Is

Small Claims Rule 7.3 lets a party in an eligible BC Provincial Court small claims case initiate mediation if a claim in the proceeding is more than $10,000 and no more than $35,000 CAD, excluding interest and claim-related expenses. Rule 7.3 does not apply when Rule 9.2 applies, in certain proceedings involving a protection order or peace bond, or when the same parties and cause of action are already in a Supreme Court action. After a Reply is filed, any party can file and deliver a Notice to Mediate (Form 29). The parties required by the Rules must attend unless a judge exempts them.

This is separate from the settlement conference, which is the usual judge-led process in an opposed small claims case. Rule 7.3 mediation is led by a neutral, trained mediator chosen by the parties or appointed through the Alternative Dispute Resolution Institute of British Columbia (ADRBC), the designated roster organization, and it takes place outside the courtroom.

Who Can Trigger Mediation

Any party — claimant, defendant, or a third party — can file a Notice to Mediate if a claim in the proceeding is over $10,000 and no more than $35,000 and no Rule 7.3 exclusion applies. Below that threshold, Rule 7.3 does not apply, and mediation is voluntary (either side can suggest it, but neither can compel it).

Unless the court orders otherwise, the Notice to Mediate cannot be filed and delivered until a Reply has been filed. Many parties file it after an unsuccessful settlement conference — the judge's evaluation gave both sides a reality check, and now a mediator may help bridge the remaining gap.

How the Mediation Process Works

Selecting a mediator. The parties must jointly appoint a mutually acceptable mediator within 14 days after the Notice to Mediate is delivered to all parties. If they do not agree, any party may apply to ADRBC, the designated roster organization, to appoint one; the court does not appoint the mediator under this rule. The mediation session must occur within 60 days after appointment and at least 7 days before the settlement conference, unless all parties agree in writing to a later date or the court orders one. The parties must complete and sign a fee declaration (Form 30) before or at the start of the session; it discloses the mediation service cost.

Preparing for mediation. Each side prepares a brief summary of their case — the facts, the documents, and what they want. This is not a trial brief; it is a concise statement so the mediator understands the dispute before the session starts. Some mediators ask for this in advance.

The session. Mediation communications are confidential and generally cannot be disclosed or used as evidence, subject to Rule 7.3 exceptions, including the mediation agreement and fee declaration. The mediator meets with the parties, usually together at first, then separately (in "caucuses"). The mediator helps each side understand the strengths and weaknesses of their case and explore settlement options. The mediator does not decide the case — they facilitate negotiation.

If you settle. The parties complete and sign a Mediation Agreement (Form 25), which any party may file at the registry. If a party fails to pay an amount in a filed agreement, the other party may file an affidavit of non-compliance and then a Payment Order.

If you do not settle. The registrar sets a settlement conference if one has not been completed; if it has, the registrar sets a trial, or a trial conference for a file at the Robson Square registry. The mediator files a result of mediation form, and the session remains subject to Rule 7.3 confidentiality exceptions.

Mediation vs. Settlement Conference

Both aim to resolve the case without trial, but they work differently:

The settlement conference happens automatically. Rule 7.3 mediation happens only if someone files the Notice to Mediate.

When Mediation Makes Sense

Mediation works best when both sides have something to gain from settling and the dispute is more about the numbers than the principles. A contractor dispute where the homeowner wants $15,000 and the contractor admits some fault but disagrees on the amount is a strong candidate for mediation. A dispute where one side believes the other committed fraud and wants to "make an example of them" in court is not.

Mediation also saves time. A trial date might be months away. A mediator can often schedule a session within weeks.

Costs and Who Pays

The cost is shared equally among each attending claimant, defendant, and third party or their insurers, unless they agree to another basis and record it in the declaration. Check the amount before signing; the fee remains payable if the mediation does not settle the case.

Some community mediation services offer reduced rates. For the Rule 7.3 appointment process, contact ADRBC, the designated roster organization.

For a complete guide to every stage of BC Provincial Court small claims — including settlement conferences, mediation, and trial preparation — see our BC Provincial Court small claims guide.

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