New Hampshire Small Claims Mediation

If you are facing a small claims case in New Hampshire and the amount is over $5,000, mediation is not optional. The court will require it before your case goes to trial. Even for smaller claims, mediation is often offered on the day of the pre-trial hearing. Understanding how it works — and how to prepare for it — can make the difference between a settlement you can live with and a judgment you cannot control.

When Mediation Is Mandatory vs. Voluntary

Under RSA 503:9 and District Division Rule 4.12, the dividing line is $5,000:

• Claims over $5,000: Mediation is mandatory. The court schedules a mediation session on the date of the pre-trial hearing or on a separate date before trial. Both parties must participate.
• Claims at or under $5,000: Mediation is voluntary. The court offers it at the pre-trial hearing, but only if both sides agree to try it.

The mediation program is administered by the Judicial Branch under the direction of the Administrative Judge and ADR Coordinator. Court-connected mediators are neutral facilitators — they do not take sides, evaluate the merits of either party's case, or issue binding decisions.

What Happens During Mediation

A mediator sits down with both parties (sometimes together, sometimes in separate rooms) and helps them explore whether a resolution is possible. The mediator may ask each side to explain their position, identify what they actually need versus what they are demanding, and test whether a compromise exists.

Everything said during mediation is strictly confidential. The mediator cannot testify about what was discussed, and neither party can use anything said in mediation as evidence at trial if the mediation fails.

You are not required to reach an agreement. If both sides cannot find common ground, the mediator reports to the court that mediation was unsuccessful, and the case moves to trial. There is no penalty for participating in good faith and not settling.

How Settlement Agreements Work

If you do reach a deal, the agreement must be put in writing and filed with the court under Rule 4.4(c). Once the judge approves it, the settlement becomes an enforceable court order — which means if either side breaks the agreement, the other can go back to court to enforce it.

One important protection in the agreement: if the settlement includes installment payments, the written document must include an acknowledgment that exempt income (Social Security, disability benefits, protected public assistance) cannot be used to satisfy the payments. This is a statutory safeguard, not something the parties can waive.

Preparing for Mediation as a Defendant

Walk in with a clear picture of three things:

1. Your bottom line — the maximum amount you are willing to pay, or the minimum terms you would accept
2. Your supporting documents — contracts, receipts, photos, messages that back up your position
3. Your alternatives — what happens if mediation fails and the case goes to trial (consider the strength of your evidence, the time cost, and the range of possible outcomes)

Mediation is often the fastest and cheapest way to resolve a small claims dispute. A negotiated agreement lets you control the outcome, while a trial puts the decision entirely in the judge's hands.

The Responding to a Small Claims Case in New Hampshire guide walks through mediation preparation and settlement evaluation alongside the rest of the defendant's response process.

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