How can I settle without going to court?

For people who are considering suing someone or who have already started a lawsuit, the most common options for settling out of court include:

Demand letters

• A demand letter is a formal letter that demands the other person (or corporation) performs a legal obligation, such as fixing a problem, paying a sum of money, or honoring a contract. The letter describes the agreement between parties and gives the recipient a chance to fix the issue without being taken to court. See a sample demand letter. (opens in a new tab)

Negotiate a settlement

• Negotiation is when the parties try to come to a resolution by discussing the issues.
• You can negotiate by sending letters or by having a settlement meeting.
• One form of negotiation is mediation.

Mediation

• Mediation (opens in a new tab) is when a third party helps you and the other person to negotiate and reach agreement. Professional mediators are trained to help resolve legal disputes. Mediators do not take sides and they don’t decide the case. They are neutral.
• Mediation is especially helpful when both parties have an ongoing relationship with each other. Court cases can damage relationships. Mediation builds understanding between you and the other person.
• For more about mediation, see the Ministry of Justice’s Guide to Mediation in BC. (opens in a new tab)
• MediateBC (opens in a new tab) has several services that can help you resolve conflict, including a directory to help you find a mediator and the free Ask a Mediator (opens in a new tab) clinic where you can ask a mediator for tips.

Arbitration

• Arbitration (opens in a new tab) is a settlement option where you and the other person in dispute select an arbitrator to resolve your dispute. The arbitrator is an impartial person who examines the facts of the dispute. The arbitrator can then decide a dispute much the way a judge would do in a court. Arbitrators may be trained in the law, or have other expertise relevant to the dispute. The ADR of British Columbia (opens in a new tab) provides a directory of arbitrators that you can search.

Collection Agency

• A collection agency is a business that pursues payments on debts owed to you or your business. Most collection agencies operate as agents and collect debts for a fee or percentage of the total amount owed from you. The main advantage of hiring a collection agency is that it becomes their job to reach the other person and obtain the money they owe you.