Supreme Court Declines to Revive Delaware Arbitration Program

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Lower Courts Held That Allowing Sitting Judges to Rule in Private Proceedings Was Unconstitutional

The U.S. Supreme Court refused to revive a Delaware arbitration program in which sitting judges would handle corporate disputes confidentially.  Lower-court decisions held that the state-sponsored program was unconstitutional on First Amendment grounds because its arbitration proceedings weren't open to the public. In a brief order Monday, the high court without comment declined to review those decisions.  The Supreme Court's order was a blow to Delaware officials who saw the arbitration program, adopted in 2009, as a way to further the state's business-friendly reputation. Many companies have chosen to incorporate in Delaware because of its favorable corporate and legal climate. More ►