Maryland Small Claims Court Mediation and Settlement

Not every small claims case needs a judge to decide it. If you have been sued in Maryland District Court and the plaintiff's number is in the right ballpark — or you would rather control the outcome than leave it to a judge — settlement or mediation might be the faster, cheaper path.

Free Mediation on the Day of Trial

Every Maryland District Court offers an Alternative Dispute Resolution (ADR) program that provides free mediation on the day of your hearing. A neutral, court-appointed mediator sits down with you and the plaintiff to see if you can reach an agreement without going before the judge.

Key facts about day-of-trial mediation:

• It is completely voluntary. Neither side can be forced to settle.
• It is free. The court provides the mediator at no charge.
• Mediation communications are generally confidential. Rule 17-105 bars disclosure in a proceeding, subject to exceptions; information that is otherwise admissible does not become inadmissible solely because it was used in mediation.
• It happens the same day. If mediation succeeds, the parties can document a settlement. If it fails, they return to the courtroom and the judge hears the trial that day.

Either party can request mediation. You can raise it with the clerk when you check in on the morning of your hearing.

Settling Before Trial

You do not have to wait for the courthouse mediation. At any point before the trial date, you can contact the plaintiff (or their attorney) and negotiate a resolution directly.

If you reach an agreement, put it in writing and make sure the court receives the required dismissal or other formal disposition. A private agreement alone does not close the court case. Your written settlement should include:

• The total amount agreed to — whether it is the full claim, a reduced amount, or a structured payment plan.
• The payment schedule — a lump sum by a specific date, or installments with dates and amounts.
• What happens if you miss a payment — state the consequences in writing. A settlement on stipulated terms can be filed with a Notice of Dismissal, and the action may be reopened to enforce those terms.
• Dismissal terms — state when the case should be dismissed and how the settlement terms will be filed. The District Court form is Notice of Dismissal (DC-CV-021).

Both parties sign the agreement. Without a formal dismissal filed with the court, the case stays active on the docket even if you have paid in full.

Payment Plans

The parties can agree to a payment plan before trial, and mediators can help structure one during settlement discussions. A consent judgment can be held in abeyance while the defendant makes agreed installment payments.

If you are negotiating directly with the plaintiff, you can propose a payment plan as part of your settlement offer. Many plaintiffs prefer guaranteed installments over the uncertainty of a trial — especially if the alternative is you disputing the full amount at a hearing.

If the case goes to trial and the judge enters judgment, do not assume the judgment will include installments; ask the court about any payment procedure that may apply.

Consent Judgments

Sometimes both parties want the certainty of a court judgment but on agreed terms. A consent judgment is a settlement that the judge enters as a formal order. This gives the plaintiff an enforceable judgment (useful if you default on payments) while giving you agreed-upon terms rather than whatever the judge might have awarded.

By agreement, a consent judgment can be held in abeyance while you make payments on schedule. The written terms should say what happens if you miss a payment; a dismissed action with stipulated terms may be reopened to enforce them.

Does Settling Mean Admitting Fault?

No. A settlement is a business decision, not an admission. Settlement agreements routinely include language stating that the resolution is a compromise and neither party admits liability. You can settle for a reduced amount without agreeing that you owed anything.

The practical calculation: if the plaintiff is asking for $3,000 and you think the judge might award $2,000 to $3,000 after a trial, settling for $1,500 eliminates the risk of the higher number plus applicable post-judgment interest (10% per year, or 6% for residential rent judgments).

The Maryland Small Claims Response Guide includes a settlement outline worksheet that helps you draft a written agreement covering all the essential terms.

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