Q2 Report - Issue Spotlight: Defaults on Stipulated Dismissal Agreements

Stipulated dismissal agreements can be an effective and mutually beneficial way for a landlord and tenant to resolve an eviction, but these agreements are frequently unfair, unrealistic and coercive to tenants – and ultimately result in an eviction judgment, a TRC analysis shows.

Roughly a third of all eviction judgments since the start of 2023 are due to a tenant allegedly defaulting on an agreement by not moving out by a specified date or missing a payment described in a repayment plan. In all, there have been 206 defaults on stipulations, during this period.

Stipulations are legal agreements made between landlords and tenants to dismiss an eviction case based on agreed-upon conditions. If the tenant follows through with the agreement, the case stays dismissed, but if they don’t, the landlord can immediately request a judgment of eviction from the court and a writ of restitution to remove a tenant from their home.

EDDP staff and mediators frequently educate tenants about the process and potential consequences of stipulations, including cautioning tenants to only agree to conditions they are confident they can meet. However, due to the inherent power imbalance between landlords and tenants, the terms of these agreements are often exclusively set by landlords, and reluctant tenants are left with few other options to avoid eviction except to agree.

Our data found:

  • There have been 1,234 stipulated dismissals since 2023, with 16 percent of these ultimately resulting in eviction judgments after tenants allegedly defaulted on the agreements.
  • 74 percent of stipulations were agreed upon without tenants having legal representation.
  • In cases where tenants were unrepresented and landlords had legal counsel, 19% of these agreements ended in judgments. Tenants with legal representation fared much better, however, with only 9% of these cases ending in judgments.

The EDDP and its partners provide free legal representation for tenants in roughly a quarter of all cases, with many of these cases ending in more reasonable resolutions. The TRC also provides a neutral mediator at all eviction hearings to help landlords and tenants work toward mutually agreeable agreements.

Mediation was utilized in 278 stipulated agreements since 2023, representing 22% of all agreements. While mediators as a neutral third party cannot advocate for tenants, they can educate them on their options and facilitate conversations to ensure tenants’ voices are heard. However, tenants in 956 cases did not use mediation services, indicating a gap in the utilization of this potentially helpful resource.

Our analysis underscores the critical role of legal representation and mediation in achieving more reasonable stipulations for tenants. Increasing access to legal resources, expanding mediation services, and educating tenants on their rights are essential steps toward creating a safer and more just system for tenants.