It is a unique procedure under some state laws (including California) which is neither "judicial" nor "arbitration." It is a dispute resolution technique which occurs after a lawsuit has been filed, and before a trial is held. The lawyers for litigating parties each present their side of the case to a third – independent -- lawyer, who then gives his opinion on who would win and how much the loser would pay. The parties can accept this opinion, or continue their litigation. If one side does not accept the opinion, there are certain consequences if that side fails to do better at trial.
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