Disputes Tribunal NZ Settle Before Hearing — How Pre-Hearing Settlement Works

You Can Settle at Any Point

Nothing stops you from contacting the other party and negotiating a resolution before the hearing date. The Disputes Tribunal actively encourages it — Referees are required under Section 18 of the Disputes Tribunal Act 1988 to check whether the parties can reach agreement before moving to a binding decision.

Settlement saves everyone time: you avoid the stress of a hearing, the other party gets their outcome sooner, and the Tribunal clears its schedule. It also gives you more control over the terms than leaving the decision to a Referee.

The Critical Step Most People Miss

Reaching a verbal agreement or even paying the full amount doesn't automatically cancel the hearing. The applicant must notify the registry in writing to withdraw the claim, or submit the signed settlement agreement to the registry. Unless the Tribunal confirms in writing that the hearing has been cancelled or adjourned, still attend.

If the Tribunal has not confirmed that the hearing is cancelled or adjourned, assume it is still going ahead and attend. If the respondent is absent, the Referee may proceed on the applicant's evidence and make an order. Always confirm with the court registry (0800 COURTS / 0800 268 787) whether the withdrawal or settlement has been formally recorded before you consider the matter closed.

Putting the Agreement in Writing

Even though the Tribunal is informal, a written settlement agreement protects both sides. It should cover:

• The amount being paid (or other remedy — repair work, return of goods, etc.)
• The payment method and timeline (bank transfer by a specific date, instalments, etc.)
• Confirmation that the applicant will withdraw the claim once payment is received
• Both parties' signatures and the date

If you're paying money, get a receipt. A bank transfer with a clear reference ("Settlement — CIV-2026-000-000000") creates its own paper trail.

Settlement During the Hearing

If you haven't settled beforehand, the Referee will facilitate a settlement discussion at the start of the hearing. This is built into the process — it happens before the formal evidence stage.

If you reach agreement during the hearing, the Referee records the terms as an Agreed Settlement Order. This consent order carries the same legal force as any other Tribunal order — meaning if one party doesn't follow through, the other can enforce it through the District Court.

An agreed settlement at the hearing has one advantage over a private pre-hearing deal: it's already a court order. If the other party doesn't do what they promised (finish the repair, return the goods, pay the agreed amount), you can apply to enforce it rather than starting from scratch.

What If They Won't Settle?

Not every dispute is settlable. If the other party won't negotiate or their terms are unreasonable, prepare for the hearing. Your preparation — evidence, chronology, documents — matters whether you settle or not. Parties who show up organised and ready sometimes prompt last-minute settlement offers from the other side when they see what they're facing.

For a structured approach to pre-hearing settlement negotiation, evidence preparation, and hearing-day procedures, the NZ Disputes Tribunal Response Guide covers each step with practical worksheets.

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