This report covers research conducted on the first year of the California judicial arbitration program. The program mandated that all civil damage suits involving amounts less than $15,000 be heard in non-binding arbitration. The study examined the program's effect on the courts' workloads, its potential for reducing costs, and the effects of arbitration on litigants. The study results suggest that hopes for a sharp reduction in court congestion should be tempered. Also, given insufficient data, the program may either raise or lower the courts' costs. Finally, the results indicate that arbitration is a faster method of disposition and that it generally saves the litigants money when compared to trial. The report also examines the legislative history of arbitration programs.