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Delaware Docket Newsletter
Summer 2010


New rules for voluntary binding arbitration adopted by the Court of Chancery help provide a cost-effective means of resolving business disputes. The rules, which implement previously passed legislation, provide a number of advantages for those choosing arbitration. Perhaps chief among these is that the arbitrator is a chancellor or master sitting permanently on the Court of Chancery, which means that parties are assured of the high quality of the arbitrator. Another important feature provided for in the rules is fast track handling of the arbitration, with arbitration hearings to be generally held within 90 days of filing. Under the rules, arbitration hearings are private proceedings that only the parties and their representatives may attend, unless all parties agree otherwise. The arbitrator is empowered to grant any remedy or relief the arbitrator deems just and equitable and within the scope of any applicable agreement of the parties, as well as interim rulings and orders.

Parties may choose binding arbitration if at least one of the parties is a business entity and is organized under Delaware law or has its principal place of business in Delaware, no party is a consumer, and, in cases involving solely a claim for monetary damages, the amount in controversy is at least one million dollars.