Delaware's Rapid Arbitration Act: What You Need to Know When Evaluating DRAA Arbitration and Drafting the Arbitration Agreement
The Delaware Rapid Arbitration Act (the ‘‘DRAA’’ or the ‘‘Act’’), which took effect in May 2015, provides a unique mechanism for resolving business disputes on an expedited basis. The DRAA offers a promising alternative to what is oftentimes a lengthy, expensive and resource-draining experience under other arbitral systems. It does that by curtailing litigation that, under other systems, often precedes, accompanies, or follows the arbitration itself, by encouraging streamlined proceedings, and by imposing financial penalties on arbitrators who exceed the 120-day period for arbitration under the Act. The DRAA offers parties that are embroiled in a dispute an enhanced degree of privacy by providing for confidential arbitral proceedings and by limiting challenges to arbitral decisions.