Settling Before a Small Claims Court Hearing in Nova Scotia

Your claim is filed, the defendant has been served, and a hearing date is set. But before that hearing, most defendants who owe money start doing the arithmetic — they realise that showing up in court, losing, and paying the full amount plus your filing costs and interest is worse than settling now. That moment is your negotiating window.

Why Cases Settle

The majority of small claims disputes resolve before the hearing. Once a defendant receives a Notice of Claim with a court date stamped on it, the situation becomes real in a way that demand letters and phone calls do not. Common reasons defendants settle:

• They know they owe the money and want to avoid a judgment on record
• They want to arrange a payment plan rather than pay a lump sum
• They want to avoid taking time off work for a hearing
• Their own review of the evidence tells them they will likely lose

From your side, settlement can also make sense. A guaranteed payment today is worth more than a possible judgment three months from now that you then have to enforce.

How to Approach a Settlement Conversation

Contact the defendant (or their representative) directly. Keep it professional and factual:

1. State what you are owed — refer to your filed claim amount
2. Propose a resolution — full payment by a specific date, a payment plan with defined instalments, or a reduced lump sum in exchange for immediate payment
3. Set a deadline — give them a reasonable window (7 to 14 days) to accept before the hearing

Put everything in writing — email or letter. Verbal agreements are harder to enforce and easier to dispute later.

If you are open to accepting less than the full amount, decide your floor number before the conversation. There is no standard percentage; weigh the evidence, the time and cost of continuing, and the value of a prompt resolution.

The Preliminary Teleconference

When you file a claim, the court gives you a date for a preliminary teleconference. This phone call with the adjudicator and both parties can provide an opportunity to discuss settlement. The adjudicator may:

• Ask both sides to explain their positions
• Identify the issues that actually need a hearing
• Encourage the parties to resolve the dispute or narrow the disagreements
• Help structure a consent order if both sides reach agreement

The teleconference is not binding unless both sides agree to a settlement during the call. If no agreement is reached, the hearing proceeds as scheduled.

Recording the Settlement Properly

If you reach a settlement — whether before or during the teleconference — get it in writing immediately. A proper settlement agreement should include:

• The exact dollar amount the defendant will pay
• The payment schedule (lump sum by a specific date, or instalments with dates and amounts)
• What happens if a payment is missed (the full remaining balance becomes due, plus you can apply for a consent judgment)
• A statement that the claim is discontinued upon full payment
• Signatures from both parties, dated

If you settle during the preliminary teleconference or at the courthouse before the hearing, ask the adjudicator to record the terms as a consent order. A consent order has the force of a court judgment — if the defendant stops paying, you can enforce it through the Sheriff's office without starting a new claim.

Settlement vs. Consent Order

A private settlement agreement is a contract between two parties. If the defendant breaks it, you may need to file a new claim to enforce it.

A consent order recorded by the adjudicator is a court order. If the defendant breaks it, you go directly to the enforcement stage — Execution Order through the Sheriff, wage garnishment, or bank levy — without filing a new claim.

Whenever possible, get the settlement recorded as a consent order.

Mediation in Nova Scotia Small Claims

Nova Scotia Small Claims Court does not offer a formal, court-annexed mediation program the way some other provinces do. However, the preliminary teleconference serves a similar function — the adjudicator actively facilitates discussion between the parties.

Outside of court, you can hire a private mediator, but for claims under $5,000, the cost of mediation often exceeds what it would save. For larger claims ($10,000+), a half-day mediation session at $500–$1,000 split between parties can be a reasonable investment if it avoids a contentious hearing.

When Not to Settle

Hold firm and proceed to the hearing when:

• The defendant's offer is unreasonably low and your evidence is strong
• The defendant has a history of broken promises (they already defaulted on a payment plan once)
• You need the court's judgment on record for collection purposes — a judgment gives you enforcement tools that a private agreement does not
• The defendant is using settlement talks to delay while hiding assets

Next Steps

If you want to explore settlement, send a written offer to the defendant as soon as the defence is filed. Set a clear deadline. If they accept, get the terms in writing or recorded as a consent order. If they do not, you have lost nothing — your hearing proceeds on schedule with your evidence ready.

The Nova Scotia Small Claims Filing Guide walks through both tracks — settlement negotiation and full hearing preparation — with templates for settlement letters and a deadline calendar to keep everything on schedule.

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