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The Delaware Rapid Arbitration Act

The Delaware Rapid Arbitration Act (DRAA) provides sophisticated commercial parties with a streamlined and confidential arbitration process for business disputes. The DRAA targets widespread concerns and frustrations regarding the pace, expense, and exposure associated with resolving business disputes through litigation or traditional arbitration. 

DRAA Advantages and Options

Through a set of thoughtful default rules paired with ample room for parties to customize their proceeding, DRAA arbitrations offer numerous advantages over both litigation and traditional arbitration, including:

  • Highly expedited timelines

  • Efficient, cost-effective resolution

  • Avoiding detours to court for preliminary disputes over issues such as jurisdiction

  • Confidentiality

  • Flexibility for streamlined discovery

  • Firm, fast deadlines for issuance of final awards

  • Appellate options

Parties may invoke the DRAA either by selecting it as the dispute resolution mechanism for a contract between them (such as in a purchase agreement or other transaction document) or by agreeing to a DRAA arbitration proceeding after a dispute has emerged. For parties to a dispute looking to “opt in” to the DRAA, Delaware ADR offers a customized DRAA-specific retention agreement.

DRAA @ Delaware ADR

Delaware ADR has been at the forefront of renewing interest in the DRAA.  Our Professional Neutrals are supported by practice and operations teams with extensive command of DRAA procedures and experience with case management and administration of DRAA proceedings–all with no added administration fees.  

For appropriate matters outside the scope of the DRAA, Delaware ADR has also helped parties craft case-specific arbitration agreements modeled after the DRAA process, furthering the vision of highly expedited and efficient arbitration that doesn’t recreate the pitfalls of litigation.

To learn more about the DRAA and its advantages, explore below or download our printable.

Practical, Expedient Resolution Under the DRAA

    • Agreement can be executed after a dispute arises - use Delaware ADR's retention agreement to opt in to DRAA to arbitrate now.

    • Agreement can be a pre-dispute contract or other contract with an arbitration provision specifying DRAA.

    • Parties do not need to do business in DE; non-DE entities may form special purpose vehicle in DE to invoke DRAA.

    • Single arbitrator or panel of three

    • Ability to select industry expert as arbitrator (may retain counsel to make legal rulings).

    • Select arbitrator or panel from Delaware ADR's professional neutrals.

    • Discovery should "be substantially less broad than the scope of information ... subject to discovery in civil litigation."

    • Parties may agree to allow third-party discovery and may agree arbitrator shall have authority to issue subpoenas and award commissions.

    • Parties may elect to forgo discovery entirely.

    • Parties avoid time consuming pre-hearing disputes by waiving challenges to jurisdiction, venue, arbitrability, etc.

    • Final hearing scheduled to occur approximately 90 days after preliminary conference.

    • Final award issued approximate[y 120-180 days after acceptance of appointment.

    • Parties may agree on scope of evidence to be presented.

    • Parties may limit the legal issues on which the arbitrator may rule.

    • Parties may limit forms of final relief the arbitrator may award and/or agree to a "high/low" or "baseball) format.

    • No need to confirm award prior to seeking appeal.

    • Direct appeal from final award to DE Supreme Court on limited grounds within 15 days of issuance of award.

    • Parties may modify this default, including by eliminating appeals or by agreeing to private arbitral process.

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