How to Settle a Quebec Small Claims Case Before the Hearing

Most Quebec small claims cases end in a settlement, not a judge's ruling. The hearing is months away in busy districts, and both sides usually prefer a known outcome over the uncertainty of a judgment. Here is how to settle and what paperwork makes it stick.

Settlement Can Happen at Any Stage

You can negotiate a settlement from the moment you receive the claim papers right up to the hearing itself. Filing your response (Form SJ-871E) within the 20-day deadline does not block settlement talks — it protects your rights while you negotiate.

The worst position is trying to settle without having filed a response. If negotiations stall and day 20 passes, the plaintiff can request a default judgment while you are mid-conversation. Always file the response first, then negotiate from a position where you still have all options.

Three Ways to Settle

Full admission and payment. You agree the plaintiff's claim is valid and pay the full amount — principal, interest, and the plaintiff's filing costs. Once paid, the plaintiff files Form SJ-842 (Quittance) to close the case. No judgment is entered against you, which matters for your record.

Agreeing to part of the claim. You agree you owe something, but not the full amount claimed. For example, a contractor claims $12,000 for renovation work, and you acknowledge $8,000 is fair but dispute the rest. You can propose a settlement for the amount you accept; if you and the plaintiff do not settle the remaining amount, that part continues through the response process.

Negotiated settlement for a reduced amount. You make an offer — typically in writing — for less than what is claimed, and the plaintiff accepts. The terms go into a written settlement agreement (entente de règlement). If you want the court to back it up, you can file the agreement with the registry, where it gets homologated and carries the same enforcement power as a judgment.

Using Mediation to Settle

For claims of $5,000 or under, contested cases are automatically referred to mandatory mediation through Quebec's SMEDAR service. Claims above $5,000 can go to voluntary mediation if both sides consent on their forms.

Mediation is free — accredited mediators (lawyers or notaries) are paid by the Ministry of Justice. Sessions last up to 3 hours. Everything said in mediation is confidential and cannot be used as evidence if the case goes to a hearing.

If mediation produces an agreement, it is filed with the court and becomes enforceable as a judgment. If it does not work, claims of $5,000 or under are referred to arbitration; for larger claims, the parties may jointly choose arbitration or proceed to a hearing.

Put It in Writing

Notify the courthouse when you reach a settlement. You can use the Amicable Settlement form (SJ-1002A) or file a signed agreement with the amount, payment dates, conditions, and contact details. Once filed, the agreement can be homologated and carry the force of an enforceable judgment.

If the claim has already been filed and you settle privately, notify the courthouse using Form SJ-1002A or a signed settlement agreement. After full payment, Form SJ-842 (Quittance) can record the full discharge and close the file.

The Contesting a Small Claim in Quebec guide covers the response options on Form SJ-871E, including settlement and partial settlement options, with a mediation preparation worksheet.

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