North Dakota Small Claims Court Mediation

Small claims cases in North Dakota are designed to be fast and informal, but that does not mean every dispute needs to go to a hearing. Mediation is an option — in theory. In practice, it depends on where in the state your case was filed and whether both parties agree to participate.

How Small Claims Mediation Works in North Dakota

Unlike family law cases, where North Dakota has a structured court-connected mediation program, small claims mediation operates informally and varies by judicial district. There is no statewide mandate that small claims cases must go through mediation before a hearing.

To find out whether mediation is available for your case, contact the Clerk of District Court in the county where the action was filed. Availability varies by judicial district and county; small claims mediation is offered on a county-by-county basis.

When mediation is available, the process generally works like this:

1. Both parties agree to mediate
2. A neutral mediator meets with both sides, either together or in separate rooms
3. The mediator helps the parties negotiate a settlement amount or payment arrangement
4. If they reach an agreement, it is put in writing and signed by both parties
5. The plaintiff files a Plaintiff's Request to Dismiss Case and Proposed Order to Dismiss Case with the court

If mediation fails, the case proceeds to the small claims hearing as originally scheduled. Ask the mediator or program what confidentiality rules apply before sharing information.

When Mediation Makes Sense

Mediation is worth pursuing when the facts are not really in dispute — both sides agree roughly what happened, but they disagree on the amount owed or the terms of repayment. Common examples:

• A contractor and homeowner agree the work was partially completed but disagree on the value of what was done
• A landlord and tenant both acknowledge some deposit deductions are legitimate but dispute others
• A buyer and seller agree a product was defective but disagree on how much of the purchase price should be refunded

In these situations, a 30-minute small claims hearing with a win-or-lose judgment may be less useful than a negotiated middle ground. Mediation also lets both sides control the outcome instead of leaving it to a judicial referee whose decision is final and cannot be appealed under N.D.C.C. § 27-08.1-04.

When It Does Not

Mediation may not be useful if your priority is to raise a threshold defense promptly — for example, the plaintiff named the wrong defendant, the claim was brought by an assignee of a debt (or by an owner or employee of a collection agency, debt buyer, or third-party collection vendor barred from filing under N.D.C.C. § 27-08.1-01(3)), or the amount exceeds the $15,000 jurisdictional cap.

Mediation also has limits when one party is not negotiating in good faith. If the plaintiff refuses to settle for anything less than the full amount claimed and you believe you owe nothing, a hearing is the faster path to resolution.

Settling Without a Mediator

You do not need a formal mediation program to settle a small claims case. Either party can contact the other directly at any point before the hearing to propose a resolution. If you reach an agreement:

• Put the terms in writing (amount, payment schedule, what each side gives up)
• Both parties sign it
• The plaintiff files a Plaintiff's Request to Dismiss Case and Proposed Order to Dismiss Case with the court
• The court signs a dismissal order, which formally closes the docket

Payment alone does not close the case. Without a signed dismissal order, the claim can sit open on the court record even after money changes hands.

If payment happens after a judgment has already been entered, the prevailing party must file Form 9 (Satisfaction of Judgment) to release the judgment lien and update the court record. Failing to do this leaves the judgment on your record, which can affect credit reports and future background checks.

The Step-by-Step Response Guide

Whether you plan to mediate, settle, or go to the hearing, you still need to file Form 3 within the 20-day deadline to preserve your right to be heard. Our North Dakota Small Claims Response Guide covers the deadline calculation, every response option, hearing preparation worksheets, and the settlement documentation process.

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