The Talmud debates whether a judge is obligated to seek compromise (pesharah) or strict law, and discusses how arbitrated compromise is a mitzvah. Rabbi Yehoshua ben Korcha holds that compromise-based arbitration is praiseworthy, rooted in the verse from Zechariah about truth and peace.
לֵימָא כְּתַנָּאֵי: בִּיצּוּעַ בִּשְׁלֹשָׁה, דִּבְרֵי רַבִּי מֵאִיר. וַחֲכָמִים אוֹמְרִים: פְּשָׁרָה בְּיָחִיד. סַבְרוּהָ, לְכוּלֵּי עָלְמָא מַקְּשִׁינַן פְּשָׁרָה לְדִין. מַאי לָאו בְּהָא קָמִיפַּלְגִי, דְּמָר סָבַר: דִּין בִּשְׁלֹשָׁה, וּמָר סָבַר: דִּין בִּשְׁנַיִם? לָא, דְּכוּלֵּי עָלְמָא דִּין בִּשְׁלֹשָׁה, וְהָכָא בְּהָא קָמִיפַּלְגִי: דְּמָר סָבַר מַקְּשִׁינַן פְּשָׁרָה לְדִין, וּמָר סָבַר לָא מַקְּשִׁינַן פְּשָׁרָה לְדִין. לֵימָא: תְּלָתָא תַּנָּאֵי בִּפְשָׁרָה, דְּמָר סָבַר בִּשְׁלֹשָׁה, וּמָר סָבַר בִּשְׁנַיִם, וּמָר סָבַר בְּיָחִיד. אָמַר רַב אַחָא בְּרֵיהּ דְּרַב אִיקָא, וְאִיתֵּימָא רַבִּי יֵימַר בַּר שֶׁלֶמְיָא: מַאן דְּאָמַר תְּרֵי – אֲפִילּוּ חַד נָמֵי, וְהַאי דְּקָאָמַר תְּרֵי – כִּי הֵיכִי דְּלִיהְווֹ עֲלֵיהּ סָהֲדִי. אָמַר רַב אָשֵׁי: שְׁמַע מִינַּהּ פְּשָׁרָה אֵינָהּ צְרִיכָה קִנְיָן, דְּאִי סָלְקָא דַעְתָּךְ צְרִיכָה קִנְיָן, לְמַאן דְּאָמַר צְרִיכָה – תְּלָתָא לְמָה לִי? תִּסְגֵּי בִּתְרֵי וְלִיקְנֵי מִינֵּיהּ! וְהִלְכְתָא: פְּשָׁרָה צְרִיכָה קִנְיָן.
§ The Gemara suggests: Let us say that the dispute between Shmuel and Rabbi Abbahu about a court composed of two judges is parallel to a dispute between tanna’im, as detailed in the following baraita: Mediation can be performed by a panel of three judges; this is the statement of Rabbi Meir. And the Rabbis say: Compromise can be performed by even a single judge. The Sages assumed that everyone agrees that we compare compromise to judgment, and require the same amount of judges for each process. What, is it not that they disagree in this matter, that one Sage, Rabbi Meir, holds that judgment and compromise can be performed by a minimum of three judges, and one Sage, the Rabbis, holds that judgment and compromise can be performed even by two judges? The Gemara rejects this analysis: No, it is that everyone holds that judgment must be performed by a minimum of three judges, and here, they disagree with regard to this matter: One Sage, Rabbi Meir, holds that we compare compromise to judgment, and one Sage, the Rabbis, holds that we do not compare compromise to judgment. The Gemara suggests: Let us say that there are three opinions of tanna’im with regard to mediation leading to compromise, as one Sage, Rabbi Meir, holds that mediation must be performed by a panel of three judges; and one Sage, Rabban Shimon ben Gamliel, holds that it can be performed by two judges; and one Sage, the Rabbis, holds that it can be performed by a single judge. The Gemara rejects this suggestion. Rav Aḥa, son of Rav Ika, and some say Rabbi Yeimar bar Shelamya, said: The one who says mediation must be performed by two judges would say that it may even be performed by one. And the reason that he says two is merely that there would be two witnesses to the proceedings, who could testify about them if necessary. In that way, neither side could later deny the terms of the compromise. Rav Ashi says: Learn from that discussion that compromise does not require a formal act of acquisition, which would legally transfer rights to the settlement payment to the other party. As if it enters your mind that compromise requires an act of acquisition to finalize its terms, according to the one who says it requires an act of acquisition, why do I need a formal court of three judges? Let it suffice with two judges, and let one litigant perform an act of acquisition with the other litigant to signify their commitment to abide by the compromise. If a formal act is required to grant halakhic force to the compromise, there is no advantage to having a panel of three judges with the status of a formal court. The Gemara concludes: But nevertheless, the halakha is that a compromise requires an act of acquisition to finalize its terms.