Quebec Small Claims Mediation: Free Mediation and Arbitration Explained

Two Paths Before Trial

Quebec's small claims system doesn't send every dispute straight to a courtroom. Two alternative resolution mechanisms sit between filing and trial: free mediation and free arbitration. Both are conducted by accredited lawyers or notaries, both are free to the parties, and both can resolve your case months or years faster than waiting for a hearing date.

Free Mediation

Mediation is available for any small claims dispute, regardless of the amount. A certified mediator — a practicing lawyer or notary — facilitates a structured conversation between you and the other party to try to reach a settlement.

How it starts: Either party can request mediation, or the court may suggest it. The mediation service assigns a mediator who must hold a session within 45 days of mandate assignment.

In designated judicial districts, pilot projects make mediation mandatory for consumer-contract claims of C$5,000 or less.

What happens in the session: The mediator doesn't decide who's right. They help both sides understand each other's position and explore settlement options — a payment plan, a partial refund, a specific repair, or whatever resolves the underlying dispute.

If you reach an agreement: Both parties sign the settlement, and the court clerk homologates it — meaning it becomes a binding, enforceable judgment. It carries the same legal weight as a judge's ruling.

If mediation fails: The case proceeds to trial without prejudice to either party.

Free Arbitration

This is the newer mechanism. Free arbitration rolled out across all Quebec judicial districts between November 2023 and March 2026 under the Regulation respecting the mediation and arbitration of small claims (C-25.01, r. 0.6.1).

When it's automatic: For claims of C$5,000 or less, cases are automatically referred to free arbitration unless one party submits an explicit opt-out form. This means that if you file a C$3,000 contractor deposit claim, you're headed to arbitration by default — not trial.

How it differs from mediation: An arbitrator hears both sides, reviews evidence, and renders a binding decision (sentence arbitrale). It's closer to a trial than mediation, but less formal and significantly faster. The arbitrator must issue the award within 30 days after the arbitration session.

The trade-off: Arbitral awards are final. There is no appeal. If the arbitrator decides against you, that's the end of the road — no option to take the matter to a judge for a different result. Before going into arbitration, make sure your evidence is organized and your case is as strong as you can make it.

For claims over C$5,000: The automatic referral rule described above does not apply.

Which One Should You Choose?

Mediation makes sense when the underlying relationship matters (a neighbour, a business partner you might work with again) or when you'd accept a creative settlement — a payment plan, a partial resolution, an exchange of goods or services. The mediator helps you negotiate; nobody imposes a decision.

Arbitration makes sense when you want a binding decision and don't want to wait the 18–36 months that a trial date typically takes. The arbitrator's 30-day decision timeline is dramatically faster. But you give up the right to appeal.

If your claim is C$5,000 or less and you prefer a full trial before a judge, you need to actively opt out of arbitration. Otherwise, you'll be directed to an arbitrator.

What This Means for Preparation

Whether you're headed to mediation, arbitration, or trial, the evidence preparation is the same. You still need your formal notice and delivery proof, your contracts and invoices, your exhibit list, and a clear chronological account of the dispute. Primary supporting exhibits must be filed within 10 calendar days after the application or contestation; the 30-day pre-hearing evidence deadline applies to trial. Arbitration timelines may differ, but the standard of preparation should not.

Our Quebec Small Claims Filing Guide covers all three paths — mediation, arbitration, and trial — with preparation checklists and evidence organization worksheets designed for whichever resolution track your case follows.

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