Small Business Reading Room

Friday, April 10, 2015

The Delaware Corporate Legislation Tracker - April 10, 2015

Did you hear? Starting on May 2, 2015 there will officially a new way to resolve business disputes in Delaware. On April 2, 2015 Governor Jack Markell has signed the legislation regarding arbitration of disputes in the Delaware Court of Chancery.

The Delaware Corporate Legislation Tracker is a free service offered by our firm, designed to keep you informed on current and pending legislation related to Delaware Corporate rules, regulations, and Delaware business matters.

Here's the latest edition:

The following Legislation affecting Delaware Title 10 - Courts and Judicial Procedure was signed by the Governor on 4/2/2015:

HB 49 w/HA 1


This Act gives business entities formed in Delaware greater capacity to resolve business disputes in a rapid and efficient manner through voluntary arbitration conducted by expert arbitrators under strict timelines.

To that end, the Act requires resolution of arbitrated matters in no more than 120 days, subject to extension of up to no more than an additional 60 days, by unanimous consent of all parties to the arbitration. The Act provides significant flexibility to select an appropriate arbitrator. If the parties do not select an arbitrator, or the selected arbitrator refuses to serve, the Act truncates the process for appointing arbitrators, where necessary, ensuring a rapid and public initiation of the process in the Delaware Court of Chancery.
The Act vests exclusive jurisdiction to determine the scope of the arbitration to the arbitrator, thus eliminating in arbitrations under the Act the role of the Courts in determining substantive arbitrability in certain cases. Neither the joinder of persons not parties to the arbitration agreement nor the assertion of non-contractual claims deprives the arbitrator of the authority to determine what is subject to the arbitration and what is not. To further speed the ultimate resolution of disputes under the Act, it provides for a single direct challenge to the Delaware Supreme Court, where challenges are not otherwise waived by the parties’ agreement, or conducted by agreement before an arbitral appellate panel. Where challenges are taken to the Delaware Supreme Court, those proceedings are public and limited to review under the standards of the Federal Arbitration Act.

To ensure that no person is subject to the Act without his or her express and voluntary consent, the Act precludes its use in cases where there is a danger that vulnerable parties’ rights are at stake. Thus, this Act may not be used to adjudicate controversies between business entities and consumers of their goods and services, or controversies involving persons who have not expressly agreed to arbitrate the matter at issue.

Bill History:

Apr 02, 2015 - Signed by Governor
Mar 31, 2015 - Passed by Senate. Votes: Passed 21 YES 0 NO 0 NOT VOTING 0 ABSENT 0 VACANT
Mar 25, 2015 - Reported Out of Committee (JUDICIARY) in Senate with 6 On Its Merits
Mar 19, 2015 - Assigned to Judiciary Committee in Senate
Mar 19, 2015 - Passed by House of Representatives. Votes: Passed 36 YES 1 NO 0 NOT VOTING 4 ABSENT 0 VACANT
Mar 19, 2015 - Amendment HA 1 - Passed in House by Voice Vote
Mar 19, 2015 - Amendment HA 1 - Introduced and Placed With Bill
Mar 17, 2015 - Reported Out of Committee (JUDICIARY) in House with 8 Favorable
Mar 12, 2015 - Introduced and Assigned to Judiciary Committee in House


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