Delaware Business Litigation Report

Court of Chancery Holds That Statutory Right to Fair Value May Be Arbitrable

Julian v. Julian, C.A. 4137-VCP (September 9, 2009).

For a number of reasons, a plaintiff may seek to litigate his claim in the Court of Chancery rather than trust his case to arbitration.  This decision illustrates how hard it is to avoid arbitration when the arbitration clause in the parties' contract is broadly drafted.  Thus, this decision holds that the statutory right to fair value for a retiring member of an LLC may be subject to arbitration, if the LLC agreement so provides.

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