Settling your case

'Terms of settlement' is a document that sets out the agreement between the parties to settle the dispute.

There is no set form for terms of settlement. Terms of settlement can be handwritten at court after discussions between the parties. The document should:

• ​​set out what will happen to the court case (for example, will the parties ask for a consent judgment or will a notice of discontinuance be filed by a certain date)
• state if legal costs and interest will be paid
• state when any payments are to be made and what will happen if the agreed payment is not made.

For more information, see Step by step guide - Preparing terms of settlement.

If you and the plaintiff come to an agreement about the case, you can ask the court to make a judgment in the same terms of your agreement. This is called a consent judgment or order.

You can ask the court to make a consent judgment or order by filing a form called a consent judgment/order at the court registry. The form must be signed by both parties.

For more information about applying for a consent judgment or order, see Step by step guide - Consent judgment or order.

The plaintiff can choose to end the case against you at any time before they get a judgment. This is called discontinuing a case. The plaintiff can do this by filing a form called a notice of discontinuance with the court.  

If your agreement is that the plaintiff will not go ahead with a case against you, they can file a notice of discontinuance. If the agreement includes details about the payment of money, it is a good idea to also put the terms of your agreement in writing (for example, in terms of settlement).

When to file a notice of discontinuance

A notice of discontinuance is a form that should be filed by the plaintiff if they want to withdraw the case. 

The plaintiff might decide to discontinue a case where:

• ​the case has settled
  
• they decide that their claim is mistaken
  
• they decide that their claim has been made against the wrong person.
  

If the plaintiff discontinues their case against you, they can still file and serve another statement of claim in the future (as long as they file it within the time limit relevant to their claim).

Does the plaintiff need permission? 

If you haven’t filed a defence or entered an appearance after being served with a statement of claim, the plaintiff can discontinue the case without your permission. 

If they discontinue the case after you have filed a defence or entered an appearance, the plaintiff will need either yours or the court's permission to file a notice of discontinuance. They have your consent if you sign it. 

You should get legal advice​ before consenting to and signing a notice of discontinuance. You may be entitled to have some of your costs paid by the plaintiff, but you need to negotiate this with the plaintiff before you sign the notice of discontinuance.

What should be in a notice of discontinuance? 

A notice of discontinuance should include the details of any agreement with the plaintiff about the payment of legal costs and fees. For example, details could include:

• ​a statement that the plaintiff pays your legal costs at an agreed amount, by a specified time, or
  
• that each party pay their own costs.  
  

When the plaintiff files the notice of discontinuance, you should ask them to provide you with a sealed (stamped) copy. If they don't, you should contact the court and check that the plaintiff has filed it.

The plaintiff or their lawyer will usually fill out the notice of discontinuance. The notice of discontinuance needs to be signed by you to show that you agree with the case ending.

Sample:  Sample - Notice of ​discontinuance​