Court-annexed arbitration is a civil trial, usually held in a courtroom, where a panel generally composed of three experienced lawyers hears the testimony of the parties and their witnesses and makes an award immediately after the trial. There is no appeal; however, any party dissatisfied with the award has the right to demand a trial de novo. Court-annexed compulsory arbitration provides relief from the increasing civil caseload, provides litigants with a speedy resolution of their disputes, and is less expensive than the traditional courtroom trial. After a brief review of the use of court-annexed compulsory arbitration in the State courts, this article describes the experience of the U.S. District Court for the Eastern District of Pennsylvania in operating an arbitration program since February 1978. A significant finding from this program is that only 2 percent of the cases arbitrated over the program's life have required trial de novo. The article considers how arbitrators are certified and appointed, procedures for seeking a trial de novo, and evaluation findings. Also addressed are court-annexed compulsory arbitration in 10 U.S. District Courts, some criticisms of such arbitration, pertinent recommendations of the Judicial Conference, and relevant new legislation. 132 footnotes.