How Do You Settle a Small Claims Case Before Trial in California?
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Reviewed & verified by A. Jason Velez, Esq.*
Managing Attorney, 1LAW · Last reviewed January 1, 2026
Legal Inquiry
Consumer Legal Issue
I have a question about settling a small claims case before trial.
Attorney Answer
Settling a small claims case before trial is common in California, and the state's Small Claims Act (Code of Civil Procedure section 116.110 and following) keeps the process simple whether you settle or go to your hearing. Here is how settling generally works.
Talk to the other party directly. Most small claims settlements happen through a simple conversation or exchange of messages. You can propose a dollar amount, a payment plan, or another resolution like repairs or an exchange of property. Nothing needs to be formal at this stage.
Put the agreement in writing. Once you agree on terms, write them down and have both sides sign, even if it is just an email confirming the amount and due date. This protects both of you if a dispute comes up later about what was promised.
Tell the court before your hearing date. If you settle in full, the plaintiff typically needs to file paperwork asking the court to dismiss the case so it does not go to trial. If the settlement involves payments over time, you can instead ask the court to enter a "stipulated judgment," which keeps the case open on the court's books until payment is complete, giving you a faster way to enforce it if the other side stops paying.
Use your county's free small claims advisor. Every California county offers a small claims advisor program that provides free help with paperwork, settlement language, and dismissal or stipulated judgment forms. This is a good resource if you are unsure how to formalize what you agreed to.
Keep records. Save texts, emails, or a signed agreement showing the settlement terms and payment status, in case you need to show the court what happened.
If the other side stops responding or backs out after agreeing, you generally still have the option to proceed to trial as originally scheduled, since nothing is final until it is filed with the court or the judgment is entered.
This is general legal information, not legal advice. A local lawyer or your county's small claims advisor can review your specific situation and help you finalize a settlement that protects your interests.
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Courts & Legal Aid in California
- File or look up a case through the California Courts, which serves the state.
- Get free civil legal help from LawHelpCA.
- Use the LSC — Find Legal Aid to find a local legal-aid office by ZIP code.
- Use the LawHelp.org to browse free legal information and self-help resources.
- Use the ABA Lawyer Referral Directory to get matched with a local attorney through your state bar.
Frequently Asked Questions
Do I need a lawyer to settle or appear in California small claims court?
No. California generally does not allow attorneys to represent parties at a small claims trial, though you can consult a lawyer for advice beforehand. Your county's small claims advisor can also help for free.
What if we agree to a payment plan instead of a lump sum?
You can ask the court to enter a stipulated judgment reflecting the payment plan. This keeps the case on record so you can go back to court for enforcement if the other party misses a payment.
What happens if I do not tell the court we settled?
If you do not notify the court, the case may still be scheduled for trial, and you or the other party may need to appear anyway. File the dismissal or stipulated judgment paperwork promptly after settling.
