Delaware courts may only vacate an arbitrator’s award for “manifest disregard for the law” if the court finds an arbitrator consciously chose to ignore a legal principle or contract terms in a manner not subject to reasonable debate, the Delaware Supreme Court has ruled. The high court issued the opinion when it reversed the Delaware Court of Chancery’s vacating of an arbitration award initially upheld by a Chancery Court master.
Garda USA, an affiliate of Quebec-based Garda World Security, paid $67.3 million to Charlotte, N.C., conglomerate SPX C.A. for Vance International, a security-guard services firm. After the 2006 transaction was completed, Garda initiated arbitration proceedings against SPX challenging the stock purchase agreement. Garda alleged that the appropriate reserve for Vance’s workers’ compensation claims was almost twice than what the seller had reserved, according to court documents.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
