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Before Going to Court

Not all legal matters need to go through a trial which are time-consuming, costly and not a guarantee. There may be times when you may want to settle a disagreement. You should also consider whether it is worth it to sue. This can help you save time and money.

Settlement

Courts are there to help people resolve disputes. However, almost all civil cases are settled before trial. Settlement can save you time, energy and money. It also gives the parties control over the outcome. Your settlement can be a tailor-made solution to the dispute. It can even make enforcement simpler because parties may be more inclined to abide by terms they have agreed to.

When to Settle

Settlement can happen any time before the judge makes the final decision after a trial. The earlier you settle, the more time, energy and money you will save. When, or if, to settle is a personal decision. Sometimes, waiting can help because you may have more information as the case goes on. Sometimes, it just means getting more frustrated and spending more time and energy.

The decision to settle must be yours. You cannot be forced to settle. Take some time to make an informed decision and do not agree to anything you do not fully understand. Once you agree to something, you usually cannot just change your mind.

Settlement agreements are almost always based on a compromise of some kind. Neither party gets everything they want. You need to decide if the proposed agreement gives you enough of what you want, keeping in mind the cost and uncertainty of continuing with a court case.

Before you try to reach an agreement there are a few things you can do to get ready.

Find important records and documents. Keep records of what happened. This may mean keeping things like receipts, but it can also include copies of emails or texts. Make notes about what happened and when it happened. Notes are especially important if the conversation took place in person or over the phone.

Learn about the law that deals with your situation. Knowing your rights and responsibilities can help you come up with a good solution.

How to Settle

There are a number of different ways to reach an agreement. Sometimes, the parties negotiate through their lawyers or, if they are not represented, directly with each other. Sometimes, the parties may use services, such as meditation, to reach an agreement. The law recognizes the potential benefits of settling a case by agreement. There are procedures in place to help parties do this.

If either party wants to suggest a compromise to the other party, they can do this without affecting the outcome of the case in the event it does go to court. To do this, the party can put the suggestion in a letter to the other party and mark it "without prejudice." This means that the other side cannot use your offer against you in the court proceedings.

Regardless of how you reach an agreement, it should be put into writing. You should carefully review the written document to make sure it reflects what you agreed to with the other party. Settlement agreements should be dated and signed by each party, in the presence of a witness if possible. They should also include the court proceedings number if there is one. You may want to consider getting a consent judgment so that the agreement can be enforced as a court order.

Parties do not have to agree on all matters. They can agree on some parts of the claim and have the rest decided by the court. The court can assist in working out parts of a settlement, such as how payment should be made. If a settlement involves payment in instalments, court proceedings can be adjourned while payments are being made.

If court proceedings have been started and the matter is settled, advise the court of the settlement immediately. This is so that the claim can be discontinued and court dates may be reassigned.

Mediation

If the parties to a claim cannot come to an agreement on their own, they may want to try mediation. Any party to the dispute may suggest mediation. In order for mediation to proceed, both parties must agree to participate. Any court proceedings that have been started may be adjourned while you are in mediation.

A mediator is a trained professional such as a social worker or lawyer. If you think you would like to try mediation, you can find a mediator by:

You can talk to a mediator before deciding to go ahead with mediation. They may be able to answer your questions and help you decide if this is the right process for you. A mediator does not replace a lawyer. If you need legal advice during the mediation process, you will still need to go to a lawyer.

A mediator will meet with all parties and help you discuss the issues and identify options for resolving the conflict. You have the chance to work out a solution that is agreeable to both sides in a less adversarial setting. You are in control of the terms of that agreement.

If you reach an agreement through mediation, you have a number of options with respect to ongoing court proceedings. After mediation, the parties may agree to:

  • adjourn the case until the agreement is carried out
  • take any remaining unresolved issues back to court
  • file the agreement with the court and ask for a consent judgment

Formal Offer to Settle

In civil matters, you have the option to make a formal offer to settle. If this offer is not accepted and you receive a more favourable award from the court, you may get more court costs awarded to you. A formal offer must be made using a specific form. The offer must be made at least 10 days before the trial or hearing of an application that will dispose of the matter. Once made, it cannot be withdrawn except with the permission of the court.

Consider Collection Before You Sue

It is important to consider your chances of collecting on a judgment before you go to the trouble and expense of starting a court action. It is also important to remember that collecting on the judgment will be up to you and at your expense.

You will want to consider the financial situation of the person you are thinking about suing. Consider whether the person has a job, owns land or has other things of value. Also consider if the person owes other people money. In some cases, other debts will be paid before any money will come to you.

You may also want to look at whether the person will have more money or assets in the future. A judgment is valid for ten years and may be renewed for further ten-year periods. If the person’s financial situation later improves, you can take enforcement action based on your judgment at that time.

For more information see Collecting on a Judgment.

Limitation Periods

If you are considering starting a lawsuit, it is important to know that there are time limits for doing this. Usually, it is two years from the time the loss or injury is discovered. For debts, it is usually two years from the time the last payment was made or the debtor acknowledged the debt in writing. Determining limitation periods can be difficult and the rules are not the same for every kind of lawsuit. If you have a question about time limits, you should consult a lawyer.

The Law Society of Saskatchewan has a manual which sets out the limitation periods in different legislation.

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