Topic: Motion To Stay

Chancery Court Confirms that Broad Arbitration Clauses Cover Questions of Substantive Arbitrability

By Scott Waxman and Will Smith

In Bennett J. Glazer, et al. v. Alliance Beverage Distributing Co., LLC, Civil Action No. 12647-VCMR (Del. Ch. Ct. March 2, 2017), the Delaware Court of Chancery granted the defendant’s motion to stay, holding that the Court lacks subject matter jurisdiction to decide the question of substantive arbitrability when the disputing parties are bound by an LLC agreement containing a broad arbitration clause.

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