Judicial Arbitration is like a trial. But it is less formal and there is no jury. Each side presents its case to a "neutral" person, also called "arbitrator." The arbitrator is either a lawyer or a retired judge. The arbitrator's decision is usually "non-binding." This means the parties can accept or reject the decision. If both parties agree to a "binding" arbitration, they must accept the arbitrator's decision.
At the Case Management Conference, the judge may order the case referred to judicial arbitration. The court will set a subsequent CMC date and it may set a trial date, if appropriate. The parties will typically select their arbitrator from a list provided by the court as soon as the $150 fee is received. Refer to Local Rule 13 and Appendix 4 for details of the court's policies.
In our county, the lawyers and/or the parties (if they do not have a lawyer) must go to the arbitration hearing. If you do not go, the arbitration can take place without you being there and you may have to pay a fine.
If all parties reject arbitration, they can ask the court at the CMC, in its discretion, not to order arbitration. At the CMC the case will be set for trial and it may be referred to an early mandatory settlement conference if no other form of ADR is elected. The court encourages mediation as an alternative to arbitration. (See also, the ADR Program Information and the Case Management Conference links in the left margin banner for additional information.)
If the parties want to switch from judicial arbitration to mediation, they need to complete a Stipulation and Order to Use ADR form, check the appropriate box, and complete and file it with the court clerk's office.
Each side must finish gathering evidence from the other party (called discovery) at least 15 days before the judicial arbitration hearing unless a request to extend discovery is ordered by the court.
Unless a court orders otherwise, the judicial arbitration must take place within 90 days after the arbitrator is assigned. If you want to postpone your hearing, you must ask the court for permission. To do this, download the Ex Parte Motion and Stipulation for Continuance of Judicial Arbitration Hearing form available in the Forms link.
If you settle before the hearing, you must notify the arbitrator and the ADR Administrator immediately. You must do this at least 2 days before your hearing date and the plaintiff must file a Notice of Settlement (use Judicial Council form).
If there is only one defendant in the case and that defendant files for bankruptcy, the case is put on hold ("stayed"). The hearing cannot take place until the bankruptcy case is decided. If there is more than one defendant, sometimes the case will go forward with the participation of the remaining defendants.
What does the arbitrator do?
The arbitrator sends both parties a Notice with the date of the hearing and identifying himself as arbitrator for your case. The arbitrator has a specific timeframe to hold the hearing and make a decision. The arbitrator will decide the case based on the law, facts and evidence presented by each side. The decision is called an Arbitration Award.
Organize your arguments, identify and organize evidence and testimony that support your arguments. The arbitrator will usually ask for an Arbitration brief to be filed at least 5 days before the hearing. Your brief should contain:
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The names of the partied
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A summary of the facts of the case
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The case law and statutes related to the case
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Copies of important documents (like, police reports, contracts, medical reports, etc.)
Remember: You must follow California Rules of Court applicable to Judicial Arbitration, CRC 3.817- 3.826.
The arbitrator will decide the case within 10 days of the hearing. The arbitrator will send a copy of the award to the parties and to the Arbitration Administrator with a proof of service attached. If the case is very complicated, the Court may give the arbitrator 20 days more to decide your case.
If either party rejects the arbitrator's award within 30 days of the decision, the case will proceed either to mandatory settlement conference and then to trial on the dates set at the case management conference or, if a trial date was not previously set to a new CMC and Trial Setting Conference. If neither party asks for a new trial within 30 days, the award is final and the court will file a Notice of Entry of Judgment.
At the time the case is referred to judicial arbitration the parties will be required to post $150.00 per case. See Local Rule 13 for more details. If the fees are not paid on time, the court will issue an Order to Show Cause which may include monetary sanctions for the failure to post the fees. (If the parties elect mediation instead of judicial arbitration, they will pay the mediator's fees as agreed between the mediator and them.)
If you do not finish arbitration by the deadline and the court did not give you permission to postpone your hearing, the court will set your case for an Order to Show Cause (OSC) hearing. You will have to explain to the judge why the arbitration has not been completed.
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