arbitration

After the Third Circuit rejected the Delaware Court of Chancery from overseeing private arbitrations, Delaware has asked the U.S. Supreme Court to review what some called "secret trials," Reuters reports. "The arbitration process was seen by Delaware attorneys as a key to boosting the attractiveness of the Court of Chancery," Reuters further reports. "It was also considered economically important to the state, as at least one company in an arbitration dispute had to be incorporated in Delaware."

The Third Circuit has ruled that the Delaware Court of Chancery's private arbitration program violates the public's First Amendment right to access court proceedings, The Legal Intelligencer reports. The panel was divided 2-1.

"Allowing public access to state-sponsored arbitrations would give stockholders and the public a better understanding of how Delaware resolves major business disputes," according to The Legal's account of the majority opinion. "Opening the proceedings would also allay the public's concern about a process only accessible to litigants in business disputes who are able to afford the expense of litigation. In addition, public access would expose litigants, lawyers and the Chancery Court judge alike to scrutiny from peers and the press."