The state Supreme Court ruled that the Delaware Limited Liability Company Act does not prohibit members of a limited liability company from designating arbitration in another jurisdiction as the sole method of dispute resolution.

The court made the ruling, which affirmed a Chancery Court decision, despite the LLC act which grants jurisdiction to the Court of Chancery. Chief Justice Norman Veasey, who wrote the opinion for the three-judge panel, said the case was one of first impression under the LLC act.