diff --git a/core/src/main/java/bisq/core/support/dispute/DisputeManager.java b/core/src/main/java/bisq/core/support/dispute/DisputeManager.java
index c56e374e52..73ce8184a6 100644
--- a/core/src/main/java/bisq/core/support/dispute/DisputeManager.java
+++ b/core/src/main/java/bisq/core/support/dispute/DisputeManager.java
@@ -928,6 +928,14 @@ public abstract class DisputeManager<T extends DisputeList<Dispute>> extends Sup
                 .findAny();
     }
 
+    public List<Dispute> findDisputes(String tradeId) {
+        T disputeList = getDisputeList();
+        if (disputeList == null) return new ArrayList<Dispute>();
+        return disputeList.stream()
+                .filter(e -> e.getTradeId().equals(tradeId))
+                .collect(Collectors.toList());
+    }
+
     public Optional<Dispute> findDisputeById(String disputeId) {
         T disputeList = getDisputeList();
         if (disputeList == null) {
diff --git a/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java b/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java
index 148f6e911c..b757fd5063 100644
--- a/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java
+++ b/core/src/main/java/bisq/core/support/dispute/arbitration/ArbitrationManager.java
@@ -92,6 +92,7 @@ public final class ArbitrationManager extends DisputeManager<ArbitrationDisputeL
                               PriceFeedService priceFeedService) {
         super(p2PService, tradeWalletService, walletService, connectionService, notificationService, tradeManager, closedTradableManager,
                 openOfferManager, keyRing, arbitrationDisputeListService, config, priceFeedService);
+        HavenoUtils.arbitrationManager = this; // store static reference
     }
 
 
diff --git a/core/src/main/java/bisq/core/trade/HavenoUtils.java b/core/src/main/java/bisq/core/trade/HavenoUtils.java
index 40881417ca..03d92c9c96 100644
--- a/core/src/main/java/bisq/core/trade/HavenoUtils.java
+++ b/core/src/main/java/bisq/core/trade/HavenoUtils.java
@@ -22,6 +22,7 @@ import bisq.common.crypto.PubKeyRing;
 import bisq.common.crypto.Sig;
 import bisq.core.offer.Offer;
 import bisq.core.offer.OfferPayload;
+import bisq.core.support.dispute.arbitration.ArbitrationManager;
 import bisq.core.support.dispute.arbitration.arbitrator.Arbitrator;
 import bisq.core.trade.messages.InitTradeRequest;
 import bisq.core.trade.messages.PaymentReceivedMessage;
@@ -60,6 +61,9 @@ public class HavenoUtils {
     private static BigInteger CENTINEROS_AU_MULTIPLIER = new BigInteger("10000");
     private static BigInteger XMR_AU_MULTIPLIER = new BigInteger("1000000000000");
 
+    // TODO: better way to share reference?
+    public static ArbitrationManager arbitrationManager;
+
     public static BigInteger coinToAtomicUnits(Coin coin) {
         return centinerosToAtomicUnits(coin.value);
     }
diff --git a/core/src/main/java/bisq/core/trade/Trade.java b/core/src/main/java/bisq/core/trade/Trade.java
index 40228db83d..76400b2bb3 100644
--- a/core/src/main/java/bisq/core/trade/Trade.java
+++ b/core/src/main/java/bisq/core/trade/Trade.java
@@ -28,6 +28,7 @@ import bisq.core.payment.payload.PaymentAccountPayload;
 import bisq.core.payment.payload.PaymentMethod;
 import bisq.core.proto.CoreProtoResolver;
 import bisq.core.proto.network.CoreNetworkProtoResolver;
+import bisq.core.support.dispute.Dispute;
 import bisq.core.support.dispute.mediation.MediationResultState;
 import bisq.core.support.dispute.refund.RefundResultState;
 import bisq.core.support.messages.ChatMessage;
@@ -1047,6 +1048,10 @@ public abstract class Trade implements Tradable, Model {
         if (disputeState.ordinal() > getDisputeState().ordinal()) setDisputeState(disputeState);
     }
 
+    public List<Dispute> getDisputes() {
+        return HavenoUtils.arbitrationManager.findDisputes(getId());
+    }
+
     public void setMediationResultState(MediationResultState mediationResultState) {
         this.mediationResultState = mediationResultState;
         mediationResultStateProperty.set(mediationResultState);
diff --git a/core/src/main/java/bisq/core/trade/protocol/tasks/ProcessPaymentReceivedMessage.java b/core/src/main/java/bisq/core/trade/protocol/tasks/ProcessPaymentReceivedMessage.java
index 1d2a8f83ad..4b6af55823 100644
--- a/core/src/main/java/bisq/core/trade/protocol/tasks/ProcessPaymentReceivedMessage.java
+++ b/core/src/main/java/bisq/core/trade/protocol/tasks/ProcessPaymentReceivedMessage.java
@@ -18,6 +18,7 @@
 package bisq.core.trade.protocol.tasks;
 
 import bisq.core.account.sign.SignedWitness;
+import bisq.core.support.dispute.Dispute;
 import bisq.core.trade.ArbitratorTrade;
 import bisq.core.trade.HavenoUtils;
 import bisq.core.trade.Trade;
@@ -55,10 +56,18 @@ public class ProcessPaymentReceivedMessage extends TradeTask {
             trade.getSeller().setUpdatedMultisigHex(message.getUpdatedMultisigHex());
             trade.getBuyer().setUpdatedMultisigHex(message.getPaymentSentMessage().getUpdatedMultisigHex());
 
-            // update to the latest peer address of our peer if the message is correct
+            // update to the latest peer address of our peer if message is correct
             trade.getSeller().setNodeAddress(processModel.getTempTradingPeerNodeAddress());
             if (trade.getSeller().getNodeAddress().equals(trade.getBuyer().getNodeAddress())) trade.getBuyer().setNodeAddress(null); // tests can reuse addresses
 
+            // close open disputes
+            if (trade.getDisputeState().ordinal() >= Trade.DisputeState.DISPUTE_OPENED.ordinal()) {
+                trade.setDisputeStateIfProgress(Trade.DisputeState.DISPUTE_CLOSED);
+                for (Dispute dispute : trade.getDisputes()) {
+                    dispute.setIsClosed();
+                }
+            }
+
             // process payout tx unless already unlocked
             if (!trade.isPayoutUnlocked()) processPayoutTx(message);
 
diff --git a/desktop/src/main/java/bisq/desktop/main/portfolio/pendingtrades/steps/buyer/BuyerStep4View.java b/desktop/src/main/java/bisq/desktop/main/portfolio/pendingtrades/steps/buyer/BuyerStep4View.java
index c47e684544..f2f1515151 100644
--- a/desktop/src/main/java/bisq/desktop/main/portfolio/pendingtrades/steps/buyer/BuyerStep4View.java
+++ b/desktop/src/main/java/bisq/desktop/main/portfolio/pendingtrades/steps/buyer/BuyerStep4View.java
@@ -88,7 +88,7 @@ public class BuyerStep4View extends TradeStepView {
         TitledGroupBg completedTradeLabel = new TitledGroupBg();
         if (trade.getDisputeState().isMediated()) {
             completedTradeLabel.setText(Res.get("portfolio.pending.step5_buyer.groupTitle.mediated"));
-        } else if (trade.getDisputeState().isArbitrated()) {
+        } else if (trade.getDisputeState().isArbitrated() && trade.getDisputes().get(0).getDisputeResultProperty().get() != null) {
             completedTradeLabel.setText(Res.get("portfolio.pending.step5_buyer.groupTitle.arbitrated"));
         } else {
             completedTradeLabel.setText(Res.get("portfolio.pending.step5_buyer.groupTitle"));