"Do not fear any man": If two come to be judged before you, before you hear what they have to say you may remain silent. If you have heard the case but you do not know how to rule for exoneration or incrimination, you may remain silent. Once the judgment is clear to you, you may not remain silent. The same applies to compromise.
If two come before you for judgment, before you have heard what they have to say, or after you have heard, but you do not know how to rule, you may tell them: Go out and compromise. Once you have heard their words and you know how to rule, you may not tell them to go out and compromise, as it is written (Proverbs 17:14) "As the letting loose of water is the beginning of contention, and before the (law of) the quarrel is revealed, leave it."
And the sages say: The compromiser is a sinner, and one who praises the compromiser is a sinner, as it is written (Psalms 10:3) "And the blesser of the compromiser rejects the L-rd," The praiser of (compromising) judges is thus found to reject his Creator. R. Shimon b. Gamliel says: Compromise is raising the small and lowering the great. R. Yehoshua b. Karcha says: It is a mitzvah to compromise, as it is written (Zechariah 8:16) "These are the things that you shall do: Speak the truth, one man to his neighbor. Truth and a judgment of peace shall you judge in your gates." Which is "a judgment of peace"? Compromise.