A new arbitration law takes effect today in Delaware that offers businesses around the world a fast-track arbitration option to resolve disputes quickly and cost-efficiently.

The newly enacted Delaware Rapid Arbitration Act (DRAA), developed by an interdisciplinary team of arbitration practitioners led by Delaware’s Chief Justice Leo E. Strine Jr., Chancellor Andre G. Bouchard, and Secretary of State Jeffrey Bullock allows companies to initiate arbitration proceedings anywhere in the world and sets strict time limits on the process to help companies avoid spending valuable time and resources on protracted litigation or even traditional arbitration.

“Delaware has a well-deserved reputation for innovation and for its responsiveness to the international business community,” explained Delaware Governor Jack Markell. “The DRAA is just the latest example of how the State—with input from the Courts and Delaware’s legal community—has responded to an unmet need for speedier dispute resolution with a thoughtful and practical solution.”

Sophisticated businesses can use the DRAA to resolve disputes quickly, fairly and cost-effectively. The new law is particularly well-suited for companies doing business together, so long as one of the businesses is a Delaware business entity.

Under the new law, an arbitrator must make a final decision within 120 days of accepting the case, although a one-time 60-day extension is allowed if both parties agree. Arbitrators who fail to render a decision before the allotted time will receive reduced fees corresponding to the length of the delay.

An International Solution

DRAA proceedings can be held anywhere in the world. This is significant, given that Delaware is the corporate home to businesses all over the globe.

For this reason, the international legal community was asked to participate in the development of the new legislation. “Legal experts from around the world shared their thoughts and experiences about the arbitration process, and those ideas were carefully considered when the law was drafted,” noted Delaware Secretary of State Jeffrey Bullock. “The law captures some of the best practices from private international arbitration, and at the same time addresses problems with existing arbitration options, such as limiting the scope of the arbitration, giving the arbitrators discretion when making awards, and limiting the appeal process.”

In a DRAA proceeding, the arbitrator can be chosen by the parties or appointed by Delaware’s Court of Chancery. The arbitrator defines the scope of the arbitration, and determines the final award. Challenges to the award are made directly to Delaware’s Supreme Court, rather than being reviewed by a trial court, and are limited in scope. This avoids the prospect of time-consuming litigation and prevents either party from using stalling tactics that could prove costly and halt proceedings.

The DRAA cannot be used for disputes involving consumers. Companies interested in having the option to use the DRAA must sign a contract to that effect.

“We are confident that attorneys and their clients around the world will quickly discover the benefits the new law offers,” Bullock stated. “Delaware understands business like no other jurisdiction in the U.S. or abroad, and is committed to continuing to provide support and innovation as quickly as needs are identified.”

The State of Delaware is working in conjunction with local attorneys to provide the international legal community with information and resources about the DRAA. The attached document provides additional facts about the DRAA, and readers can download a copy of the DRAA handbook, as well as model forma and petitions, from the website of the Delaware firm Richards, Layton & Finger at rlf.com/DRAA. More information is also available at global.blogs.delaware.gov.

Governor also nominates Judge Calvin L. Scott, Jr. for reappointment to Superior Court

Wilmington, DE – Governor Markell today announced he has nominated Collins J. (C.J.) Seitz, Jr., a widely respected attorney with more than three decades of legal experience, to serve on the Delaware Supreme Court. If confirmed by the Delaware Senate, Seitz will fill the vacancy left by Justice Henry duPont Ridgely, who retired on January 31^st.

“During his distinguished legal career of more than 30 years, C.J. Seitz has earned a reputation as a brilliant attorney whose judgment, civility, and integrity are second to none,” said Governor Markell. “If he is confirmed by the Senate, I believe C.J. will serve our state well as a member of Delaware’s highest court.”

Mr. Seitz is the founding partner of Seitz, Ross, Aronstam & Moritz LLP. In that capacity, he regularly litigates corporate, commercial, and intellectual property cases, and advises clients on issues of Delaware corporate law. Previously, Mr. Seitz served as managing partner of Connolly Bove Lodge & Hutz LLP, where he practiced for more than three decades.

In addition to his work in the courtroom, Mr. Seitz is actively involved in his community. He is a trustee for the New Castle Presbyterian Church, board member of the Friends of Hockessin Colored School #107, board member and former president of the Greater Hockessin Area Development Association, and board member and former president of Community Legal Aid Society.

“I want to thank the Judicial Nominating Commission and the Governor for this nomination,” said Seitz. “If I am fortunate enough to be confirmed by the Senate, I will do my best to serve the people of Delaware as a Justice on the State’s highest court.”

Seitz, 57, received a Bachelor of Arts from the University of Delaware in 1980.  He earned his law degree at the Villanova University School of Law and was admitted to the Delaware Bar in 1983. He resides with his wife in New Castle.

In addition, Governor Markell today announced that he has nominated the Honorable Calvin L. Scott, Jr. for reappointment to the Delaware Superior Court. A graduate of Carnegie Mellon University and the Widener University School of Law, Judge Scott has served as a judge on the Superior Court since 2003.

“Judge Scott is a dedicated public servant who has served with distinction as a member of the Superior Court for the last 12 years,” said Governor Markell. “If he is confirmed by the Senate, I believe he will continue to serve our judiciary and our state well.”

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Wilmington, DE – Governor Markell today announced the nomination of Judge James T. Vaughn, Jr., a 15-year veteran of the Superior Court who has served as President Judge since 2004, to serve on the Delaware Supreme Court. If confirmed by the Delaware Senate during its special session on October 8, 2014, Vaughn will fill the vacancy left by Justice Carolyn Berger, who retired on September 1.

“For more than 15 years, President Judge Vaughn has served our state with distinction and integrity as a member of the Superior Court,” said Governor Markell. “If confirmed by the Senate, his experience, his wisdom, and his commitment to justice will make him an outstanding addition to Delaware’s highest court.”

Judge Vaughn, a Dover native who now resides in Smyrna, was appointed to the Superior Court in 1998 and as President Judge in 2004. Before his appointment to the Superior Court, Judge Vaughn spent 22 years as an attorney in private practice, first at Vaughn & Vaughn, then at Vaughn & Nicholas, and finally at Schmittinger & Rodriguez.

“I am very honored and humbled to receive the Governor’s appointment to succeed Justice Berger,” said Judge Vaughn. “If I am confirmed by the Senate, I look forward to serving Delaware’s citizens as part of the state’s highest court.”

In addition to his record in the courtroom, Judge Vaughn has devoted countless hours as a public servant representing residents of Kent County. He was a member of the Clayton Town Council from 1979 – 1989, including three years as President, and was then elected to the Smyrna School Board, on which he served from 1989 – 1994 and spent three years as President of the Board. Community organizations in which he has been a member include the Smyrna-Clayton Rotary and St. Peters Episcopal Church.

Vaughn, 65, obtained his law degree from Georgetown University Law School in 1976 and was admitted to the Delaware Bar the same year. He graduated magna cum laude with a Bachelor of Arts from Duke University in 1971 after attending J.B. Moore High School in Smyrna, where he received his diploma in 1967.

Dover, DE – The Delaware Senate today unanimously confirmed the nomination of Karen Valihura to serve on the Delaware Supreme Court, succeeding Justice Jack B. Jacobs, who retired on June 24. Valihura will be sworn in within the next 30 days. The Governor issued this statement following the confirmation:

“Today’s vote reflects the extraordinary skill Karen has demonstrated as an accomplished member of Delaware’s legal community. Her intellect, experience, and thoughtful approach to the law make her an ideal person to help continue our state’s tradition of judicial excellence. I was proud to play a role in giving her the opportunity to apply her talents as a member of our highest court. I appreciate the Senate’s consideration and support.”

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