The Delaware Court of Chancery has sent to arbitration an advancement dispute stemming from the messy wind down of a hedge fund during the 2008 financial crisis, finding an agreement between the firm and its investors had overcome the presumption that the court should decide the matter of substantive arbitrability.
In an 18-page letter opinion, Vice Chancellor Sam Glasscock III said carve-outs in an otherwise broad arbitration provision were narrow enough to prove that both parties intended to have an arbitrator decide whether the issues raised in the suit can be handled out of court.
