NWT Small Claims Settlement: Form 19 Offer to Settle and Form 5 Consent Order

Most NWT Small Claims Cases Settle

The Territorial Court of the Northwest Territories requires mandatory judicial mediation before any civil claim goes to trial. This is not a suggestion — every defended claim sits down with a judge to attempt resolution. The majority settle at or before this stage.

Two forms drive the settlement machinery: Form 19 (Offer to Settle) and Form 5 (Consent Order). Understanding how each works gives you leverage whether you are making the offer or receiving one.

Form 19: The Formal Offer to Settle

A party may serve Form 19 at any stage of the proceedings. The Rule 14 penalty is available only for an offer served within 30 days after the conclusion of the settlement conference, or later if a judge permits. An offer outside that window may still be made and accepted, but it cannot trigger the penalty. The form states the amount the offering party is willing to accept or pay to resolve the claim.

Form 19 carries real consequences. If a claimant rejects a respondent's offer and is awarded no more than that offer at trial, including interest and expenses, the judge may order the claimant to pay a penalty. If a respondent rejects a claimant's offer and the claimant is awarded at least the offer at trial, including interest and expenses, the judge may order the respondent to pay a penalty. The penalty can be up to 20% of the offer.

This cost rule incentivises serious negotiation. A well-timed Form 19 puts pressure on the other side to settle rather than gamble on a trial outcome.

How to Draft a Form 19

Keep it concrete. State the total amount you will accept (or pay), whether the amount includes pre-judgment interest, and the deadline for acceptance. When deciding whether to impose a penalty, the judge considers the difference between the offer and the result, the parties' interest in proceeding to trial, and when the offer was made.

Serve Form 19 on the other party by ordinary service. To accept an offer under Rule 14, complete Form 20 (Acceptance of Offer to Settle) and serve it on the offeror within 28 days after the offer is served. When the offer and acceptance are filed with a clerk, the acceptance becomes a Payment Order.

Form 5: The Consent Order

When parties reach an agreement — whether through direct negotiation, at mandatory mediation, or after exchanging Form 19 offers — they record the terms on Form 5 (Consent Order). Both parties sign it, and the judge enters it as a court order.

A Form 5 Consent Order is enforceable like any other court order. If one side fails to comply, the other can pursue enforcement through the same mechanisms available for a Payment Order: Writ of Execution (Form 22), Garnishee Summons (Form 35), or Summons to Payment Hearing (Form 23).

Mediation Settlements: Form 12

If settlement happens during mandatory judicial mediation specifically, the agreement is recorded on Form 12 (Agreement) and the judge enters Form 13 (Settlement Conference Record). This is functionally the same as a Form 5 Consent Order but specific to the mediation process.

If a party breaches a Form 12 agreement, the non-defaulting party files Form 15 (Affidavit of Non-Compliance). The judge can then cancel the agreement and enter immediate judgment for the unpaid balance plus costs — a faster enforcement path than starting a new action.

When to Make an Offer

To preserve the Rule 14 penalty possibility, serve the offer within 30 days after the settlement conference, or ask a judge to permit later service. Use your evidence and estimates to set realistic terms; the judge considers when the offer was made when deciding whether to impose a penalty.

Consider your total exposure:

• Filing fee ($55), service costs, possible process server fees
• Time spent preparing for and attending a trial
• The risk that the judge awards less than you claimed (or more than the defendant expected)

An offer that saves both parties the cost and stress of trial — even if it means accepting less than the full claim — is often the rational choice.

Getting Settlement Right

The NWT Small Claims Filing Guide includes a mediation preparation worksheet that helps you calculate your minimum acceptable settlement before walking into the room. It covers Form 19 timing, Form 5 execution, and what to do if a mediation settlement (Form 12) is breached.

See more Northwest Territories guides →