Delaware Expands Role Of Chancery Court To Include “Technology Court.”

On May 29, 2003, the Governor of Delaware signed into law Senate Bill 58, legislation that adds two new sections to the Delaware Code concerning the jurisdiction of the Court of Chancery. The first section provides that the Chancery Court is empowered to both hear and conduct mediations regarding “technology disputes” where the parties have stipulated to Delaware jurisdiction, no party is a consumer, at least one is a business formed under Delaware law or with its principal place of business in Delaware, and, if involving solely a monetary claim, the amount in controversy is at least $1 million. The statute bars punitive damages and juries, and provides a definition for “technology dispute.” The second section authorizes the Chancery Court to mediate “business disputes” under certain defined circumstances.

The bill's sponsor stated: "In sum, the Act provides additional benefits for businesses choosing to domicile in Delaware. It seeks to keep Delaware ahead-of-the curve in meeting the evolving needs of businesses, thus strengthening the ability of the State to convince such businesses to incorporate and locate operations here. Notably, all elements of the Act only increase the jurisdiction of the Court of Chancery to handle matters in situations involving parties who have agreed that Chancery is the forum that should resolve their dispute; that is, the Act does not compel any party that has not agreed to Chancery’s jurisdiction to submit to it, unless pre-existing law would enable Chancery to hear the case."

Click here for a copy of Delaware's press release on this new measure.