Judicial reference is a lesser-known alternative to traditional litigation or arbitration in order to resolve contractual disputes, where parties appoint a private referee to decide the case. Best understood as a hybrid of a court trial and arbitration, judicial reference offers several advantages that make it an efficient and often more desirable dispute resolution mechanism.
Commercial disputes in California are expensive, time-consuming, and unpredictable. Jury trials, in particular, carry the risk of large, unforeseeable verdicts. Court calendars in major California counties remain congested. In FY 2023-2024, there were 4.8 million total cases filed with only 2013 judges sitting on the bench.1 This means judges have an average of 2,430 cases each. During that same time frame over 98,000 unlimited civil cases (cases over $25,000 at issue) were filed in Los Angeles County alone.