South Dakota Small Claims Court Stipulated Agreement: How Written Settlements Work

You and the other party have been talking, and it looks like you can resolve the case without a hearing. In South Dakota small claims court, that resolution takes the form of a stipulated agreement — a written deal both sides sign, spelling out exactly who pays what, when, and what happens if someone does not follow through.

Getting the agreement right matters more than most people think, because small claims judgments cannot be appealed. If the deal falls apart and you end up back in court, the terms you wrote down are what the judge will look at.

What a Stipulated Agreement Should Include

A written, signed agreement can record the terms, but it does not itself close the court case. At a minimum, it should cover:

• The total amount being paid and whether it settles the claim in full or only in part.
• The payment schedule — a lump sum by a specific date, or installments with exact amounts and due dates.
• How payments will be made — check, bank transfer, or through the court's UJS ePay system.
• What happens on default — if the paying party misses a payment, does the full remaining balance become due immediately? Can the other party reinstate the original claim?
• Court costs — who pays the filing fee and any service costs, or whether both sides absorb their own.
• Signatures and the date from both parties.

If you are the defendant and the plaintiff is dismissing the case, the agreement should explicitly state that the dismissal is with prejudice — meaning the plaintiff cannot refile the same claim later. A dismissal without prejudice leaves the door open.

Filing the Dismissal With the Court

A signed agreement between the parties does not automatically close the court case. Form UJS-255 (Small Claims Notice of Dismissal) must be filed with the clerk of courts to formally end the proceedings.

The form records the dismissal. Until the clerk confirms the dismissal or removes the hearing, do not assume the hearing has been canceled.

If the agreement has been reached but UJS-255 has not been filed by the hearing date, bring your copy of the signed stipulated agreement to court and be prepared to attend unless the court confirms otherwise.

Paying Through the Court vs. Paying Directly

You have two basic options for processing the money:

Through the court — pay the clerk of courts directly, or use the UJS ePay online portal. Paying into court creates an official record. If there is ever a dispute about whether you paid, the court's records can help document the payment.

Directly to the other party — by check, transfer, or cash. This is faster, but you carry the burden of proof. Keep canceled checks, bank transfer confirmations, or a signed receipt. If the other party later claims you never paid, your records are your only defense.

For installment plans especially, paying through the court or keeping meticulous records of each payment protects you from a situation where the other party denies receiving one installment and tries to enforce a default.

What Happens If the Agreement Breaks Down

If the other party stops making payments or otherwise violates the stipulated agreement, what you can do depends on how the case was closed.

If the case was dismissed with a stipulated judgment: The judgment is already on record. After the 30-day statutory stay (unless it is a default judgment or the court allows immediate execution), the unpaid party can pursue enforcement — garnishment under SDCL 21-18-1 or a property lien under SDCL 15-16-7 — without filing a new lawsuit.

If the case was dismissed by UJS-255 without a judgment: There is no judgment in that case to enforce. The proper next step depends on the agreement and the court's dismissal record; get case-specific legal advice before acting.

This is why it matters whether the dismissal is paired with a consent judgment or just a standalone dismissal. If you are the party owed money, a stipulated judgment gives you a direct enforcement path after the applicable stay. If you are the one paying, a standalone dismissal is not a judgment enforcing the payment terms, so state clearly what happens if a payment is missed.

Getting It Right the First Time

Our South Dakota Small Claims Response Guide walks through the settlement and stipulated agreement process alongside every other response option — disputing, admitting, counterclaiming, and preparing for the hearing. If you are negotiating with the other party and want to make sure the paperwork holds up, the guide covers each step.

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