Mandatory Mediation for Claims Below $5,000 in Quebec Small Claims Court

A practical overview of mandatory mediation and arbitration for claims below $5,000 in Quebec

The Quebec government has now completed the gradual rollout of mandatory mediation and automatic arbitration for certain small claims cases across the province.

As of now, these measures apply in all judicial districts of Quebec.

In districts where this has already been implemented, the results are encouraging. The median time to reach an agreement following a mediation session is approximately six months.

This is significantly shorter than the time typically required to obtain a judgment.

What changed

For claims of $5,000 or less (not including interest), mediation is now mandatory at the Small Claims Division of the Court of Québec.

If no agreement is reached during mediation, the file is automatically referred to arbitration.

For claims exceeding $5,000, mediation and arbitration remain available, but on a voluntary basis – which means both parties need to agree to the process.

Mediation, arbitration and trial: what’s the difference?

Mediation is a facilitated discussion between the parties with the assistance of a neutral third party. The objective is to reach a voluntary agreement. No decision is imposed, and the process is confidential.

If no agreement is reached, the matter proceeds to arbitration, which is presided by an arbitrator with more flexible rules. The arbitrator will hear both sides and render a decision, which is as binding as a judgement. Unlike mediation, the outcome is imposed.

Mediation and arbitration can be held in person of via videoconference.

This differs from a traditional trial, which takes place before a judge, follows more formal procedural rules, is generally public and held in person.

A shift toward faster resolution

According to the government, mediation has already produced measurable results.

In districts where it has been implemented for over a year, the median time to reach a settlement following mediation is approximately six months. By comparison, obtaining a judgment could previously take close to twenty-two months in some districts.

The expectation is that these measures will improve access to justice by accelerating the resolution of lower-value disputes.

A few practical takeaways

Even though mediation is mandatory, settlement is not.

Parties are required to participate in the process, but they are not obligated to reach an agreement.

Although parties cannot be represented by a lawyer at the hearing, they can still consult one beforehand. This can make a meaningful difference in how a case is prepared, the evidence is organized, and how a party approaches both mediation and arbitration.

Mediation remains an opportunity to resolve a dispute more quickly and with greater control over the outcome.

Final thoughts

This reform reflects a broader shift toward alternative dispute resolution in Quebec.

For lower-value claims, the focus is now clearly on efficiency and early resolution, with an increased emphasis on resolving disputes before they reach a traditional hearing.