@strawCake - Obviously solving problems through arbitration instead of going to court would be great. But who would provide this arbitration? The state? The two parties involved in the case? I think your solution needs to be thought out a little bit more.
I actually think it's kind of unfair that a person can't be sent to jail through the civil litigation system. Some of the negligent behavior that results in court cases is criminal, too. It would be great if both cases could be settled at the same time.