What is judicial arbitration?

In the California courts, if the judge is of the opinion that the amount in controversy in a case does not exceed $50,000, the judge may order to parties to arbitration. The plaintiff can also elect to go to arbitration by agreeing to limit the award in a case to the $50,000 maximum. A hearing is then conducted before an arbitrator, not a judge. A party who is dissatisfied with the ruling has the right to demand a trial de novo, i.e., a new trial before a judge or jury in the usual manner. There is no comparable procedure in the federal courts.