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Third Circuit Strikes DE's Arbitration Program On First Amendment Grounds

The Third Circuit has ruled that the Delaware Court of Chancery's private arbitration program violates the public's First Amendment right to access court proceedings, The Legal Intelligencer reports. The panel was divided 2-1.

"Allowing public access to state-sponsored arbitrations would give stockholders and the public a better understanding of how Delaware resolves major business disputes," according to The Legal's account of the majority opinion. "Opening the proceedings would also allay the public's concern about a process only accessible to litigants in business disputes who are able to afford the expense of litigation. In addition, public access would expose litigants, lawyers and the Chancery Court judge alike to scrutiny from peers and the press."