The plaintiff and the defendant in a small claims case may come to an agreement (or settlement) at any point during lititgation without having to go through with trial (before a judge renders a final decision). Settlements save both parties time, energy, and money. Settlements also give the parties control over the outcome because the parties will be more inclined to abide by terms they both agreed to willingly.

A settlement can be the best option for both sides, but a judge still has to approve any settlement the parties agree to. Both parties should still appear in court on the return date to make sure that the settlement agreement is filed with the judge. If the parties still can't come to an agreement, the judge will decide the outcome.