The program began in 1985. It handles cases involving amounts up to $150,000; more than half the cases are contract cases. Information for the study came from an analysis of a random sample of 350 cases filed between January 1985 and December 1987, from a questionnaire survey of 276 attorneys involved in these cases, and interviews with 132 litigants in the arbitration cases and the control group. Findings showed that the program apparently encouraged litigants to pursue their cases, although it was unclear whether case filings increased. In addition, arbitration lowered the private cost of litigation by about 20 percent, although no clear effect was found for public costs. Furthermore, arbitration had no overall effect on case duration and did not appear to affect outcomes. Finally, both litigants and attorneys viewed the program favorably. Results indicated that alternative dispute resolution can work for disputes involving large amounts of money and showed how this program operates. Tables, figures, footnotes, and appended background information and data collection instruments.