How to Settle a Simple Procedure Claim in Scotland

Why Settlement Is Worth Considering

Most Simple Procedure disputes involve two people who had a business relationship — a contractor and a homeowner, a buyer and a seller, a service provider and a customer. The claim is for £5,000 or less. A hearing takes time, preparation and emotional energy. If a fair number exists somewhere between what the claimant wants and what you think is right, settling saves both sides the hearing.

Settlement is not the same as giving up. It is a negotiated outcome where both parties agree on a resolution without the Sheriff deciding for them.

When to Start Talking

You can negotiate at any point — before filing Form 4A, after filing it, or even at the hearing itself. The Sheriff has a duty under Rule 1.4 to encourage parties to resolve disputes through negotiation or Alternative Dispute Resolution where appropriate.

Filing Form 4A does not prevent settlement. In fact, filing your response on time protects you while negotiations continue. If talks break down, you still have your defence on record. If you hold off on filing while you negotiate and the deadline passes, you are exposed to a default decree.

How to Negotiate

For most Simple Procedure disputes, the negotiation is direct — by phone, email or letter between you and the claimant. There is no formal protocol required by the court, but two rules will protect you:

Put everything in writing. An informal verbal agreement does not pause court deadlines or cancel a scheduled hearing. If you reach a deal by phone, follow up immediately with an email confirming the terms.

Mark genuine settlement discussions "without prejudice." The label is commonly used for settlement offers, but adding the words alone does not guarantee that communications are protected from being shown to the Sheriff.

In-Court Mediation

At a Case Management Discussion, the Sheriff may refer the case to in-court mediation through Scottish Mediation. Where available, a trained, neutral mediator conducts a confidential session with both parties.

If you reach an agreement in mediation, the mediator drafts binding settlement terms. The case is then dismissed or the Sheriff records a decree reflecting the agreement. If mediation fails, the case returns to the Sheriff for a hearing. Nothing said during mediation can be used as evidence.

Many Sheriff Courts provide free or low-cost in-court mediation through SCTS and Scottish Mediation. Availability and cost vary, so ask your local court whether it is offered. Participation is voluntary unless the Sheriff orders it.

Recording the Settlement with the Court

A handshake deal is not enough. If you agree terms with the claimant, the agreement must be formally recorded with the court. Otherwise, deadlines keep running, hearings stay scheduled, and the claimant could still apply for a decree.

Two routes to formalise the settlement:

If the money is paid in full straight away: The claimant submits a written request to dismiss the claim, or both parties submit a joint application for a decree of absolvitor. A decree of absolvitor is a final court order ending the claim and preventing the claimant from re-litigating the same dispute.

If the settlement involves a payment plan: The parties apply to sist (pause) the case. The court freezes proceedings while you make the agreed payments. If you default on the plan, the claimant can apply to restart the case. If you complete the payments, the claimant applies to dismiss.

What to Include in a Settlement Agreement

Whether you draft it yourselves or a mediator helps, the agreement should cover:

• The total settlement amount
• The payment schedule (lump sum, instalments, or a specific future date)
• Whether it is in full and final settlement (meaning neither side can come back for more)
• Who pays any court expenses already incurred
• What happens if either side defaults — typically, the other side can restart the court process

Both parties sign it. Send a copy to the Sheriff Clerk alongside the application to dismiss or sist the case.

If the Claimant Rejects Your Offer

If you offer to settle and the claimant refuses, the case continues through the court process and may proceed to a hearing. A genuine settlement offer is not automatically an admission of liability; the Sheriff decides the claim based on the evidence and arguments before the court.

The Scotland Simple Procedure response guide includes a negotiation checklist and the steps for recording a settlement with the court.

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