South Dakota Small Claims Court Settlement and Payment Plans

Not every small claims case needs a hearing. If you agree with all or part of what the plaintiff claims — or if you can negotiate a resolution — settling before trial saves both sides time, stress, and uncertainty. Here's how settlement works in South Dakota small claims court.

Admitting the Claim

If you agree you owe the money, you can file a written admission with the clerk of courts or state it at the hearing. Admitting doesn't mean you have to pay the full amount in one lump sum — you can propose a payment plan.

For a partial admission, use Form UJS-278 to acknowledge the amount you agree on and dispute the rest. You can pay the admitted portion into court (through the clerk or via UJS ePay) while contesting the balance at trial.

Negotiating a Settlement

You can contact the plaintiff directly at any point to discuss a resolution. Common arrangements include a lump-sum payment for less than the full amount claimed, a structured payment plan spread over several months, or the plaintiff agreeing to drop the case in exchange for specific non-monetary terms.

Two things to keep in mind during negotiations:

Settlement talks do not pause or extend your response deadline. Unless the court has entered a dismissal or another order changing the deadline, failing to file Form UJS-278 by the date on the clerk's notice can still lead to default, even if you have reached a settlement agreement.

Verbal agreements carry risk. If the other side backs out, you have no proof. Get everything in writing before you stop preparing your defense.

Putting It in Writing

A stipulated agreement is a written settlement document signed by both parties. It should state the total amount being paid, the payment schedule (dates and amounts), what happens if a payment is missed, and whether each side waives any further claims.

Once you've signed a stipulated agreement, the plaintiff files Form UJS-255 (Small Claims Notice of Dismissal) with the clerk to formally close the case. Make sure the dismissal addresses any outstanding court costs or counterclaims — these don't disappear automatically.

Paying Through the Court

If you're paying an admitted amount or a settlement, process it through the clerk of courts or UJS ePay (which accepts credit and debit cards, with transactions processing in 24-48 hours). Paying through the court creates an official record that protects you from double liability.

If you pay the plaintiff directly, keep canceled checks, bank transfer confirmations, or a signed receipt. You'll need this documentation to prove payment if there's ever a dispute about whether the debt was satisfied.

Asking About Mediation

If you want to explore mediation, ask the clerk of courts whether an option is available for your case. Do not assume a mediation service is offered in your circuit.

Participating in mediation does not automatically extend your deadlines unless the judge enters a formal stay order. Don't assume you have more time just because a mediation session is scheduled.

After the Settlement

Once the full amount is paid, the plaintiff is legally obligated to file Form UJS-019 (Satisfaction of Judgment) with the clerk. This officially discharges the debt and releases any judgment liens. If the plaintiff won't file it after you've paid in full, you can petition the clerk with proof of payment under SDCL 15-39-76.2.

The South Dakota Small Claims Response Guide includes a settlement framework and Form UJS-255 instructions for closing out your case properly.

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