Judicial or court-annexed arbitration diverts specified case types to panels of lawyers who, under court supervision, hold hearings and render decisions, generally in informal sessions with relaxed evidence rules. A dissatisfied party may appeal the arbitration decision by proceeding to trial de novo, but this is usually accompanied by sanctions if the trial does not produce a better outcome for the appellant than the arbitration. New Jersey, 11 States, the District of Columbia, and 10 Federal district courts currently use judicial arbitration. The programs vary on such matters as case eligibility, prehearing activity, arbitrator assignment, discovery, arbitrators, and appeal. The New Jersey program handles only automobile tort actions under $15,000. The New Jersey program promises to reduce court congestion, speed the disposition of claims, and reduce processing costs. Arbitrator eligibility requirements can be met by a relatively small percentage of attorneys; therefore, attorneys must be convinced of the fairness and effectiveness of arbitration before they are motivated to qualify as arbitrators. Cost savings for litigants require that the State supreme court set an attorney fee schedule for arbitration that reflects the reduced attorney time and effort in arbitration compared to trial. 229 footnotes.