Sanhedrin 6 - Settle or Go To Court?

Rabbi Eliezer ben R. Yossi says, "It is forbidden for a judge to arbitrate a compromise." It is certainly permissible for disputants to settle out of court or to ask an arbitrator to help them. However, once they come to court, the judge who arbitrates a compromise shows that, in his opinion, the compromise settlement is more correct than an appropriate ruling based on Torah law. Furthermore, in settlement, the would-be winner is robbed of some money.

Rabbi Yehoshua ben Korcha says on the contrary that before the verdict, it is a meritorious deed for a judge to arbitrate a compromise - "...execute truth and judgment of peace...", and "judgment of peace" means compromise - like King David, who "...rendered judgment and righteousness..." Rabbi Eliezer explains that King David would render a strict judgment first, but then, if the losing party was poor, he would pay his own money.

Art: Anthony van Dyck at the Court of Charles I by Louis Katzenstein