How to Settle a Small Claims Case Out of Court in Maine

You Can Settle at Any Point

Maine encourages settlement in small claims cases, and most judges will tell you that a negotiated agreement both sides accept is better than a judgment one side resents. You can settle before the hearing, on the hearing date through CADRES mediation, or even during the hearing itself before the judge rules.

The key thing to understand: private settlement discussions do not suspend or cancel your hearing date. The hearing stays on the calendar until a formal dismissal or signed consent order is filed with and entered by the court. If negotiations break down the night before, you still need to show up or face a default judgment.

Settling Before the Hearing

Contact the plaintiff directly (or through their attorney, if they have one) and propose terms. Settlement usually means agreeing on a dollar amount — often lower than the full claim — and a payment timeline.

When you reach an agreement:

1. Put it in writing. Include the amount, payment dates, and what the plaintiff agrees to do (dismiss the case, not pursue further claims from the same dispute).
2. Both parties sign. Each side keeps a copy.
3. File a dismissal with the court. The plaintiff files a voluntary dismissal, or both parties file a stipulated consent order that the judge enters on the docket. The case remains active until the dismissal or order is entered.

If you're paying a lump sum before the dismissal is entered, get a signed release stating when the plaintiff will file it. Keep every receipt, canceled check, and electronic transfer confirmation, and attend the scheduled hearing unless the court has entered the dismissal or order.

CADRES Mediation on Hearing Day

On the morning of the hearing, during the "call of the list," the judge asks both parties whether they want to try mediation through the Court Alternative Dispute Resolution Service (CADRES). The service is free — funded through filing fee surcharges — and conducted right there in the courthouse by a trained neutral mediator.

If mediation produces an agreement, both parties and the judge sign it. The agreement becomes a binding court order enforceable like any judgment.

The critical detail: a signed CADRES mediation agreement cannot be appealed. Once you sign, you've waived your right to challenge the terms in Superior Court. Make sure you understand and accept every term before signing. If the mediator proposes something you're uncomfortable with, you can always walk away and let the case proceed to the hearing.

Installment Payment Agreements

If you know you owe the money but need time to pay, you can negotiate a payment plan either with the plaintiff directly or through the court. Under Rule 8(a) of the Maine Rules of Small Claims Procedure, the court may order installments when both parties are present at the hearing or submit a written stipulation.

The court provides two forms for this:

• Form MJ-SC-001 — Affidavit and Agreement for Installment Payments (for individual debtors)
• Form MJ-SC-012 — Installment Payment Agreement (for LLCs, corporations, or other business entities)

A signed installment agreement becomes a court order. If you miss a payment, the creditor can go back to court and pursue enforcement of the full remaining balance.

Protecting Yourself in Any Settlement

Whether you settle before or during the hearing:

• Get everything in writing. Oral agreements are hard to prove and easy to dispute.
• Keep all payment receipts. Canceled checks, Venmo confirmations, bank transfers — anything showing you paid.
• Make sure the case is actually dismissed. Check with the court clerk after the plaintiff was supposed to file the dismissal. An undismissed case can still generate a judgment against you.
• Don't sign away more than the dispute. A settlement should resolve this specific claim, not give the plaintiff a blanket release to come after you for unrelated matters.

When Settling Makes Sense (and When It Doesn't)

Settlement makes sense when the dispute involves a genuine disagreement and both sides have some exposure. If the plaintiff's claim has merit but the amount is inflated, negotiating a reduced payment saves you the stress of a hearing and the risk of a full judgment.

Settlement makes less sense when the claim is baseless — you don't owe anything, the plaintiff's facts are wrong, or they missed the statute of limitations. In those cases, attending the hearing and presenting your evidence may result in the case being dismissed entirely, with no payment at all.

The Responding to a Small Claims Case in Maine guide includes a Response-Route Decision Map that helps you evaluate your options — dispute, settle, mediate, or counterclaim — based on the specifics of your case and a structured comparison of the risks.

See more Maine guides →