Delaware’s ADR Capabilities
Delaware’s primary litigation venues—the Court of Chancery for matters in equity and the Superior Court for matters of law—are together widely regarded as the best and most effective business court system in the country. Central to the courts’ effectiveness is the Delaware Uniform Arbitration Act (DUAA), which allows the Court of Chancery to enforce private arbitration agreements and to appoint arbitrators in the absence of formal arbitration agreements. The Court of Chancery may conduct private mediation proceedings for business and technology disputes. ADR, primarily through mediation, is also available in the Superior Court.
Delaware’s New and Expanded ADR Provisions
In April 2009, new Delaware legislation added to the available dispute resolution options by allowing Chancery Court judges to arbitrate business disputes. Parties will now have the ability to draw on the considerable expertise of the members of the Court in an expeditious, private and confidential arbitration process.
Further streamlining the process, the new legislation:
- Vests Delaware's Supreme Court with authority to hear any action or to enforce or vacate an order issued by a member of the Court of Chancery acting as arbitrator
- Authorizes parties voluntarily to agree that any decision by a member of the Court of Chancery or a Master of the Court will be final and not subject to appeal
- Enables parties voluntarily to have a matter adjudicated before a Master of the Court of Chancery with the same force and effect as a decision of the Court.
Richards Layton—at the Center of ADR in Delaware
Richards Layton litigators have participated in Court of Chancery and Superior Court arbitration and mediation proceedings since the DUAA was enacted nearly 40 years ago. Now, as the rules and procedures for expanded ADR activity are being established, our firm’s integral role in Delaware’s legal landscape means that we have direct input into this evolving new ADR infrastructure.
Lawyers in our firm have had leading roles in the Court of Chancery Rules Committee and frequently appear in that Court, giving us unsurpassed knowledge of the procedures and personalities of Delaware courts. The new provisions allowing Chancellors to serve as arbitrators give our clients access to experienced and expert judicial talent in proceedings designed to resolve even the most complex disputes quickly and effectively.
Richards Layton’s Chancery Court Insight
Just as Delaware Chancery litigation has its own formal set of procedures, as well as traditional informal practices, so too will the evolving ADR provisions. Having argued many landmark Court of Chancery cases, our litigators are completely familiar with best practices as they currently exist and as they will be established for Chancellors to serve as arbitrators. We are well known and respected by the Chancellors who decide the Court of Chancery matters, and our knowledge of their approach to the facts and the process of litigation can be invaluable in successful representation.
Federal Court ADR
In many Delaware District Court matters handled by our lawyers, the action is assigned to one of our two Magistrate Judges (or possibly other neutrals) for dispute resolution. After a formal assignment by the District Court Judge, the Magistrate Judge will hold an initial discussion of the merits of alternative dispute resolution, particularly mediation. Thereafter, if the parties and the lawyers feel it would help resolve the matter, they set up a day in Wilmington to meet with the Magistrate Judge and discuss a possible resolution of the case. With the assistance of the Magistrate Judges and using the mediation procedures in place, our lawyers have had tremendous success resolving District Court actions short of trial.
Richards Layton’s Other ADR Experience
In addition to ADR proceedings in Delaware state and federal courts, our lawyers have appeared in proceedings of the American Arbitration Association and the International Chamber of Commerce. We are experienced in formal ADR proceedings, and have also conducted negotiation and settlement at every stage of litigation—before, during and after trial, and on appeal. Disputes in which we pursue ADR include claims involving fiduciary duty, contract litigation, commercial disputes, technology disputes and securities matters.
Summary: A Powerful Tool
Litigation is a costly and time-consuming process, which means that a victory at trial may not be the best way to meet a client’s business objectives. Our lawyers have significant experience in alternative means of dispute resolution that save clients time and money, particularly as focused on Delaware’s Court of Chancery and Superior Court.
As Chancellors move into their new roles as direct arbitrators and mediators, our familiarity with these highly knowledgeable judicial professionals promises to make ADR an even more powerful tool for Richards Layton clients to use in resolving business controversies.