The court should encourage settlements between parties to a small claim.
Commentary
Settlement saves both parties the inconvenience of further court appearances and often provides a speedier resolution that is reasonably acceptable to both parties. The court should encourage settlement, particularly if the parties appear to exhibit a willingness to compromise. The clerk-magistrate’s office should take advantage of its close contact with the parties to discuss the possibility of settlement.
If the parties do reach a settlement, the clerk-magistrate's office should inform the parties that it is advisable for them to reduce their agreement to writing and present it to the court for recording prior to entry of judgment, unless the interests of justice would not be served thereby, so that the court will have the power to enforce the agreement should it be violated. See recently amended Uniform Small Claims Rule 7(a). If the parties notify the court by mail prior to the trial date that the matter has been settled without reducing it to writing or requesting it to be entered as an order of the court, the court should place that letter in the file of the case. In these circumstances, there is no judgment, and no further action is required by the court.