If the parties agree to be on the show and sign a waiver, agreeing that arbitration in Sheindlin's court is final and cannot be pursued elsewhere (unless she dismisses the lawsuit without prejudice), their case will air on Judge Judy.[18] The award limit on Judge Judy, as on most 'syndi-court' shows (and most small claims courts in U.S.), is $5,000. The award for each judgment is paid by the producers of the show, from a fund reserved for each case. About forty percent of the cases are money judgments, while sixty percent are dismissed.[19]

...

While the cases on Judge Judy are actual small claims court cases, the show is not a court of law, but rather an arbitration, and all parties must sign contracts agreeing to arbitration under Sheindlin. Even this status has been disputed: in Doo Wop Shoppe Ltd. v. Ralph Edwards, syndi-court justice was determined not to be an actual form of arbitration because a third party pays the cost of the judgment. This decision was subsequently overturned.