Litigation

More Litigation Over Application of Arbitration Clauses

By Francis G. X. Pileggi, Esq.

Matria Healthcare, Inc. v. Corral SR LLC,  2008 WL 401125   (Del. Ch., Feb. 14, 2008), read letter opinion here. This decision addressed the implementation of a prior opinion summarized here which decided which post-merger claims the parties intended to submit to the AAA and which claims were to be submitted to a post-closing accountant for a binding determination. The dispute arose due to overlapping facts and ambiguity about which issues were required to be submitted to which forum based on the parties' agreement. This is another example of a dispute over the application of an arbitration clause that sometimes spurs the very type of litigation  that the arbitration clause was intended to avoid.

Full post as published by Delaware Corporate and Commercial Litigation Blog on February 18, 2008 (boomark / email).