Delaware Business Litigation Report

Court Of Chancery Explains Law Of Issue Preclusion In Arbitration

Government Employees Insurance Company v. Progressive Direct Insurance Company, C.A. 11425-MZ (November 2, 2016)

This decision addresses issues that may arise when there are successive arbitrations involving the same basic set of facts, if different parties. It concludes that when engaging in the limited judicial review which asks whether an arbitrator exceeded its authority, the issue of whether the first arbitration’s findings are preclusive in the second arbitration is for the second arbitrator to decide, not the Court.

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