Legend Natural Gas II Holdings, LP v. Hargis, C.A. No. 7213-VCP (Del. Ch. Sept. 28, 2012).

This decision addresses the well-worn issue of arbitrability. Because this issue is so frequently the subject of Chancery decisions highlighted on these pages, I will point out only a few bullet points that are noteworthy for future reference:

  • The court also addresses the power of the court to stay a case pending arbitration.
  • The risk of forcing a party to submit the issue of arbitrability to an arbitrator–when the argument is clearly frivolous, in light of the analytical approach required by the applicable standard, is discussed at length by the court.
  • The two-prong test to determine arbitrability as announced by the 2006 Delaware Supreme Court decision in Willie Gary is reiterated.