"The producers' employees call both parties and ask them questions about their case to make sure it is suitable for Judge Judy. 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. The award limit on Judge Judy, as on most "syndi-court" shows (and most small claims courts in the 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 the remaining sixty percent are either dismissed or involve an order for an exchange of property.
Both the plaintiff and the defendant receive $100 for their appearance as well as $35 a day, paid to them by the show. The litigants' stay lasts for the number of days that the show does taping for that week, which is two or three days. In addition, the airfare (or other means of travel) and hotel expenses of the litigants and their witnesses are covered by the show. If there is an exchange of property, Sheindlin signs an order, and a sheriff or marshal oversees the exchange. There are no lawyers present, and participants defend themselves on Judge Judy, as is standard in a small claims court. Sheindlin sees only a half-page complaint and a defense response prior to the taping of the cases, sometimes only moments before. Most of the cases, without any footage deleted to meet the time constraints of the show, usually last anywhere from twelve to forty-five minutes." - Wikipedia
