Mandatory Mediation in NWT Small Claims

Every Defended Claim Goes Through Mediation

Under the Territorial Court Civil Claims Rules, all contested civil claims must go through mandatory judicial mediation before a trial can be scheduled. Once both sides have filed their pleadings — Form 1 (Statement of Claim) from the plaintiff and Form 2 (Statement of Defence) from the defendant — the court clerk schedules a mediation session.

This is not optional. You cannot skip it and go straight to trial.

What Mediation Actually Looks Like

A Territorial Court judge presides over the mediation in a private, confidential setting. It is not a trial — there are no witnesses, no formal evidence presentation, and no cross-examination. The judge's role is to help both parties find a resolution, not to decide who is right.

Parties must attend in person unless the judge authorizes attendance by telephone or video under Form 40 (Application to Judge). If a company is involved, its representative must have full settlement authority; confirm this before the session.

How to Prepare

Claimants who treat mediation like a trial — arriving with binders of evidence and rehearsed opening statements — miss the point. Claimants who arrive with nothing waste their best chance at a quick resolution. The right preparation sits between those extremes:

Bring an itemized claim breakdown. List every component of your claim — principal debt, interest, out-of-pocket expenses, filing fees — with supporting documents for each.

Know your settlement range. Before you walk in, decide the minimum amount you would accept to settle the matter today. Factor in the time, stress, and additional cost of going to trial.

Prepare a structured offer. You can make a formal offer using Form 19 (Offer to Settle) before or during mediation. If the other side rejects your offer and the judge later awards you the same or more at trial, there are cost consequences for the defendant's refusal.

Organize your evidence. While mediation is not a trial, having your key documents — contracts, invoices, photos, text messages — on hand helps when the judge asks about specific facts.

If Mediation Succeeds

If both sides reach an agreement, they sign Form 12 (Agreement) and the judge records the outcome on Form 13 (Settlement Conference Record). Form 12 is binding and enforceable — if the other side breaks the agreement, you file Form 15 (Affidavit of Non-Compliance) and the judge can cancel the agreement and enter immediate judgment for the unpaid balance plus costs.

If Mediation Fails

If no settlement is reached, everything said during mediation stays confidential. Neither side can reference mediation discussions at trial, and the judge who conducted the mediation is disqualified from presiding over the trial. The judge gives pre-trial directions about evidence exchange and the clerk sets a trial date.

Adjournment Requests

If you need to adjourn a scheduled mediation, request it at least seven days before the session. The fee for an adjournment is $25 (subrule 22(5)). Late requests without good reason may be denied.

For a mediation preparation worksheet and a structured settlement calculator, see the NWT Small Claims Filing Guide.

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