It is narrated from Sayyiduna al-Sa'ib bin Yazid (may Allah be pleased with him) that "The Messenger of Allah (peace and blessings be upon him), Sayyiduna Abu Bakr and Sayyiduna Umar (may Allah be pleased with them) did not appoint any (formal) judge."
And the first to appoint a judge was Sayyiduna Umar (may Allah be pleased with him); he said (to the judge): "Turn people away from me in (minor disputes over) one dirham or two dirhams (that is, settle these cases yourself)."
Imam al-Tabarani (may Allah have mercy on him) said: "No one narrated this hadith from Imam al-Zuhri (may Allah have mercy on him) except Yazid bin Abi Habib (may Allah have mercy on him), from Yazid (may Allah have mercy on him) only Ibn Lahi'ah (may Allah have mercy on him), and from Ibn Lahi'ah (may Allah have mercy on him) only al-Walid (may Allah have mercy on him), while Hisham bin Ammar (may Allah have mercy on him) is alone in narrating it."
Hadith Referenceالمعجم الأوسط / باب الميم / 6756
Hadith Gradingمحدثین:إسناده حسن، فيه ابن لهيعة وبقية رجاله رجال الصحيح
Hadith Takhrij«قال الهيثمي: وفيه ابن لهيعة وفيه ضعف وحديثه حسن وبقية رجاله رجال الصحيح «مجمع الزوائد ومنبع الفوائد، ج 4، ص 196»» «أخرجه الطبراني فى «الكبير» برقم: 6662»