What happens at a settlement conference in a debt case in Small Claims Court?

A settlement conference is a mandatory step in Small Claims Court proceedings in Ontario once a Defence has been filed. It takes place before a deputy judge or other court officer, and its purpose is to help the parties resolve their dispute without going to trial.

At the conference, both parties — plaintiff and defendant — or their legal representatives attend and discuss the claim. The conference judge reviews the issues, identifies what is agreed and what is disputed, and encourages settlement. The judge may also give an opinion on the relative merits of each position, which can be a useful reality check for both sides. Anything said at a settlement conference is generally confidential and cannot be used at trial if the case proceeds.

If the parties reach a settlement, the terms can be recorded and entered as a consent judgment, giving both parties a binding resolution without a trial. If no settlement is reached, the judge will set the case down for trial and may give procedural directions.

Parties are expected to come prepared: bring your evidence, know your position on damages, and think about what settlement would genuinely resolve the dispute. Failing to attend without a valid reason can result in costs awards or dismissal of the claim. Settlement conferences tend to move cases faster than going straight to trial, and many claims are resolved at this stage — sometimes without paying legal fees if you negotiate directly.