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: Delaware Business Litigation ReportCourt Of Chancery Holds Post Merger Dispute Resolution Procedure Is An Arbirtation
By Edward M. McNally
SRG Global Inc. v. Robert Family Holdings Inc., C.A. 5314-VCP (November 30, 2010)
Merger agreements or asset purchase agreements frequently include provisions for resolving post merger disputes. This is particularly true when there is an escrow to cover contingent claims. In this decision, the Court holds that an agreement to submit such a dispute to an "expert " to resolve is the same thing as agreeing to arbitrate the dispute. As a result, all the law governing what the arbitrator is to decide applies, including what facts he may consider in rendering his decision.
Full post as published by Delaware Business Litigation Report on November 30, 2010 (boomark / email).
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