Disputes Tribunal NZ Mediation and Withdrawing a Claim — What Respondents Need to Know

Does the Disputes Tribunal Offer Mediation?

Not formally. Unlike the Employment Relations Authority or the Tenancy Tribunal, the Disputes Tribunal doesn't have a separate mediation step built into its process. There's no mediator assigned to your case before the hearing.

However, the hearing itself has mediation-like elements. Referees often start by exploring whether the parties can reach an agreement. They may ask both sides what outcome they'd accept, point out the strengths and weaknesses of each position, and encourage a negotiated resolution before moving to a formal determination. If both parties agree to terms during the hearing, the referee can record the agreement as a consent order — which is enforceable like any other Tribunal order.

Settling Before the Hearing

You don't need the Tribunal's help to negotiate. As a respondent, you can contact the claimant directly at any time before the hearing to discuss a resolution. Common settlement approaches:

• Full payment of the claimed amount — if you accept the claim is valid and want to avoid the hearing
• Partial payment — you agree to pay a portion, and the claimant accepts it as full settlement
• Non-monetary resolution — you agree to complete the work, repair the goods, or provide a replacement
• Instalment arrangement — you'll pay the agreed amount over time

If you reach a settlement, put it in writing. Both parties should sign a settlement agreement that specifies:

1. The amount or action agreed
2. The payment schedule (if applicable)
3. That the agreement is in full and final settlement of the claim
4. That the claimant will withdraw the Tribunal claim

How a Claim Gets Withdrawn

The claimant — not the respondent — withdraws the claim. They contact the Tribunal registry and request a withdrawal, or submit a withdrawal notice in writing referencing the CIV number. Until the Tribunal confirms in writing that the hearing is cancelled, the hearing is still on.

This is a critical point. If you've negotiated a settlement and the claimant says they'll withdraw the claim, don't assume it's done. Keep preparing for the hearing until you receive written confirmation from the Tribunal that the case is withdrawn. If you don't attend and the claim wasn't actually withdrawn, the referee can proceed in your absence and issue an order based on the claimant's evidence alone.

What If the Claimant Doesn't Follow Through on the Settlement?

If you paid the agreed settlement amount but the claimant doesn't withdraw the claim and the hearing goes ahead, bring evidence of the payment and the settlement agreement. The referee will take the settlement into account — if the claim is fully resolved, there's no remaining dispute for the Tribunal to determine.

If the claimant withdraws the claim but later wants to file again (because, for example, you didn't follow through on your side of the settlement), they can potentially file a new claim. The withdrawal of one claim doesn't create a permanent bar. Your defence in the new claim would be that a binding settlement was reached and you complied with its terms.

Can You Ask the Referee to Help Negotiate?

At the hearing, yes. Referees often facilitate settlement discussions before making a formal determination. If you arrive at the hearing willing to resolve the matter but haven't reached terms with the claimant, you can indicate this to the referee. They'll typically explore settlement options before proceeding to hear evidence.

This isn't mediation in the formal sense — the referee isn't a neutral third party without decision-making power. They're the decision-maker who's also willing to help the parties agree. If no agreement is reached, the same referee determines the case on the evidence.

When Settlement Makes Sense

From a respondent's perspective, settling before the hearing makes sense when:

• You accept some or all responsibility and the claimant's demand is reasonable
• The cost of preparing for and attending the hearing exceeds the settlement amount
• The dispute involves an ongoing relationship (a regular customer, a business partner) where preserving it matters more than winning the point
• Your evidence is weak and the likely outcome at the hearing is worse than what the claimant is willing to accept now

It makes less sense when the claim is without merit, when the claimant's demand is far above what a referee would award, or when you have a counterclaim that would reduce or eliminate what you owe.

The NZ Disputes Tribunal Response Guide includes a response decision flowchart that walks through each of these options — dispute, settle, counterclaim, or partial admission — with practical steps for each path.

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