A recent Delaware Court of Chancery decision interpreted the Delaware Rapid Arbitration Act (“DRAA”), about which there is a relative paucity of published opinions. See OBI Pharma, Inc. v. Biosion, Inc., C.A. No. 2025-0965-KSJM (Del. Ch. Sept. 26, 2025).

This short letter ruling addressed an issue regarding the appointment of a panel of three arbitrators. An agreement between the parties required disputes to be resolved pursuant to arbitration under the DRAA,10 Del. C. § 5801, et seq. The relevant agreement did not provide a procedure for the selection of a panel of three arbitrators. Because the parties could not agree on who to select as arbitrators, they submitted a list of six arbitrators to the court, all of whom were qualified under § 5805(b) of the DRAA. The court picked three persons from that list.

Highlights

• The court observed that in 2015, the Delaware Supreme Court adopted rules that govern the procedure in arbitrations under DRAA. Those rules are available on the Court’s website.
• The court noted that under DRAA Rule 9, its letter ruling officially commenced the arbitration pursuant to 10 Del. C. § 5805(b).
• Rule 9 also provides that the appointed arbitrators must file with the Court of Chancery and serve upon the parties, a written notice of acceptance of appointment as an arbitrator and set forth their email address, postal address, telephone and fax numbers, as well as the form in which written submissions to the arbitrator shall be made. The court waived the obligation to provide fax numbers.
• This letter ruling and order are noteworthy for two reasons: (1) it shows that “somebody” is using the DRAA; and (2) it provides guidance regarding procedural issues that arise under the DRAA.