ARBITRATION WORLD The Delaware Rapid Arbitration Act J.P. Duffy, Tara L. Pehush, and Priya Chadha (New York) The state of Delaware recently enacted the Delaware Rapid Arbitration Act (DRAA), which is designed to promptly and economically resolve commercial disputes between sophisticated business entities within as few as 120 days. The DRAA is significant for international arbitration practitioners because it may apply where at least one of the parties is incorporated in Delaware (or has its principal place of business there). Many U.S. counterparties, as well as the U.S. subsidiaries of non-U.S. companies, are incorporated in Delaware and can therefore avail themselves of the act. THE DELAWARE RAPID ARBITRATION ACT The DRAA is an act of Delaware state law, and its purpose is “to give Delaware business entities a method by which they may resolve business disputes in a prompt, cost-effective, and efficient manner, through voluntary arbitration conducted by expert arbitrators, and to ensure rapid resolution of those business disputes.” Consequently, the DRAA was enacted to achieve the same “twin goals” that U.S. federal courts often point to when discussing the Federal Arbitration Act— namely, “settling disputes efficiently and avoiding long and expensive litigation.” HISTORY BEHIND THE DRAA The DRAA is not Delaware’s first attempt at creating an arbitration act. In 2009, Delaware passed the Delaware Court of Chancery Business Arbitration Program (DCCBA), which was Delaware’s first attempt at a comprehensive commercial arbitration program. 46 K&L Gates: ARBITRATION WORLD