Third Circuit Says Delaware Can’t Have Secret Arbitrations By Judges
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The Third Circuit ruled last week that Delaware’s Chancery Court could not offer its judges’ services as neutral arbitrators in its courtrooms, unless those arbitrations were open to the public.
In 2009, the Delaware courts decided to provide arbitration. The state amended its laws to create an arbitration process that was only open to disputes worth more than a million dollars with at least one party being a business incorporated in Delaware (and no party being a consumer). The parties did not need to have a pre-dispute arbitration agreement. As long as they both consented, they could file their arbitration in the Delaware courts for a$12,000 initial fee and have the Chancellor select a Chancery Court judge to hear the arbitration in the Delaware courthouse (for another $6,000/day). However, “the statute and rules governing Delaware’s proceedings bar public access.” Only parties and their representatives could attend the proceedings.
Read original articleTags: Arbitration, Delaware, Delaware?s Chancery Court, Judges The Third Circuit
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