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Thad Davis of Gibson Dunn & Crutcher. Thad Davis of Gibson Dunn & Crutcher.

Parties intending to enter into arbitration agreements should take note of the recent Delaware Court of Chancery decision in In re Good Technology Stockholder Litigation, No. CV 11580-VCL, 2017 WL 4857341 (Del. Ch. Oct. 27, 2017). In Good Technology, the parties agreed that “any disputes arising out of [a term sheet] shall be referred to” a specified individual “who shall have sole authority and exclusive jurisdiction to resolve any such disputes.” The Court of Chancery opined that if the individual selected to resolve disputes was unavailable to do so, substituting another arbitrator would be appropriate under the terms of the agreement.

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