Small Claims

The Process of Mediation in Small Claims Court

Mediation in Small Claims Court helps resolve disputes faster and cheaper by negotiating a fair settlement without going to trial.

March 1, 2025

Filing a Small Claims Court case doesn’t always mean you have to go through a stressful trial. In Ontario, mediation is an option that allows both parties to negotiate a resolution with the help of a neutral third party. Mediation can save you time, money, and stress by helping you settle disputes outside of court.

This guide explains how mediation works in Small Claims Court, what to expect, and when it’s a good option for resolving your case.

1. What Is Mediation in Small Claims Court?

Mediation is a voluntary and confidential process where both parties work with a trained mediator to try to settle their dispute. Unlike a trial, where a judge makes the final decision, mediation allows both parties to negotiate a solution that works for everyone.

Key benefits of mediation:

  • Saves time and court costs.
  • Provides more control over the outcome.
  • Helps preserve relationships (important for business or landlord-tenant disputes).
  • Avoids the stress and unpredictability of a trial.

📌 Is mediation mandatory?

  • In some Ontario courthouses, mediation is mandatory for certain Small Claims Court cases.
  • In other locations, mediation is optional but encouraged.

For more details, check Ontario’s Small Claims Court Mediation Program.

2. When Should You Choose Mediation?

Mediation is a good option if:

✅ You want to resolve the dispute quickly instead of waiting for a court date.✅ You prefer a negotiated settlement over an unpredictable judge’s decision.✅ You want to avoid high legal fees.✅ You and the other party are willing to compromise.

🚨 Mediation may NOT be the best option if:

  • The other party refuses to negotiate in good faith.
  • You need a court order to enforce your rights (e.g., debt collection, eviction).
  • There is a power imbalance, such as in cases involving fraud or harassment.

For help deciding if mediation is right for you, contact Carson Frankum for a case review.

3. How Does Mediation Work in Small Claims Court?

📌 Step 1: Agree to Mediation

  • If mediation is mandatory, the court will refer your case to a mediation session.
  • If mediation is optional, you and the other party must agree to participate.

📌 Step 2: Select a Mediator

  • Some courthouses provide court-appointed mediators.
  • You can also hire a private mediator (may have additional costs).

📌 Step 3: Prepare for Mediation

  • Gather all relevant documents (contracts, receipts, emails, etc.).
  • Outline your ideal settlement and areas where you’re willing to compromise.

📌 Step 4: The Mediation Session

  • The mediator will listen to both sides and help find common ground.
  • The process is informal, and no one is forced to settle.
  • If both parties agree, a settlement agreement is drafted and signed.

📌 Step 5: Enforcing the Agreement

  • If a settlement is reached, it becomes a binding contract.
  • If the other party fails to follow the agreement, you can return to court for enforcement.

For more on preparing for mediation, check How to Present Evidence in Small Claims Court.

4. What Happens If Mediation Fails?

If mediation does not result in a settlement, the case moves forward to trial.

📌 Next steps if mediation fails:

  • The court will set a trial date.
  • Both parties must present evidence and witnesses.
  • A judge will make a final and legally binding decision.

🚨 Even if mediation fails, it can still be useful!

  • Mediation often helps clarify issues, making the trial process faster and more focused.
  • Some disputes settle later in the court process after an unsuccessful mediation.

For trial preparation tips, check What to Expect at a Small Claims Court Hearing.

5. How to Make Mediation Successful

Be prepared. Know your facts, have documents ready, and outline your desired outcome.✅ Stay professional. Avoid personal attacks and focus on resolving the issue.✅ Be willing to compromise. Mediation works best when both sides are flexible.✅ Listen to the mediator. They are trained to help find fair solutions.✅ Get legal advice. A paralegal can help guide you through the process and protect your interests.

For expert mediation assistance, contact Carson Frankum.

Final Thoughts: Mediation Can Save Time and Money

Mediation in Small Claims Court is a great way to resolve disputes faster and with less stress. While it’s not right for every case, it can be a valuable tool for reaching fair settlements without going through a full trial.

📌 Key Takeaways:

  • Mediation is voluntary or mandatory depending on the courthouse.
  • It saves time, money, and stress compared to a trial.
  • Both parties control the outcome, rather than a judge.
  • If mediation fails, the case proceeds to trial.

🚀 Need help with a Small Claims Court case? Contact Carson Frankum today for expert guidance.