Li v. Standard Fiber, LLC, C.A. No. 8191-VCN (Del. Ch. Mar. 28, 2013) (Noble, V.C.)

Landis Rath & Cobb, together with Schulte Roth & Zabel LLP, successfully defended Standard Fiber, LLC in an action for advancement and indemnification brought by a 25% shareholder and former CEO. Vice Chancellor Noble granted Standard Fiber’s motion to stay the Court of Chancery proceeding pending a decision by a California arbitrator. Vice Chancellor Noble agreed with Standard Fiber’s argument that provisions in four separate agreements, when viewed together, demonstrated the parties’ intent to arbitrate the issue of substantive arbitrability, despite the inclusion of an integration clause and the lack of an arbitration provision in the indemnification agreement. The Court concluded that plaintiff’s argument “essentially invites the Court to resolve the first-order issue of substantive arbitrability at the outset, contravening a central tenet of [the Delaware Supreme Court’s decision in James & Jackson, LLC v. Willie Gary, LLC, 906 A.2d 76 (Del. 2006)].

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