TITLE 10

Courts and Judicial Procedure

Organization, Powers, Jurisdiction and Operation of Courts

CHAPTER 3. Court of Chancery

Subchapter III. General Jurisdiction and Powers

§ 341. Matters and causes in equity.

The Court of Chancery shall have jurisdiction to hear and determine all matters and causes in equity.

Code 1852, §  1932;  Code 1915, §  3844;  Code 1935, §  4367;  10 Del. C. 1953, §  341; 

§ 342. Adequate remedy in other courts.

The Court of Chancery shall not have jurisdiction to determine any matter wherein sufficient remedy may be had by common law, or statute, before any other court or jurisdiction of this State.

Code 1852, §  1933;  Code 1915, §  3844;  Code 1935, §  4367;  10 Del. C. 1953, §  342; 

§ 343. Injunctions staying actions at law, or to prevent waste.

The Court of Chancery may grant injunctions for staying actions at law, and to prevent waste, as there may be occasion.

Code 1852, §  1932;  Code 1915, §  3844;  Code 1935, §  4367;  10 Del. C. 1953, §  343; 

§ 344. Proceedings in chambers.

All jurisdiction and powers of the Court of Chancery may be exercised in chambers.

10 Del. C. 1953, §  344; 

§ 345. Power to invest moneys and take security.

The Court of Chancery may, in the securing or investing of a sum or sums of money under orders of the Court, cause to be taken for the same, in any case not otherwise provided for by law, a recognizance, bond or mortgage in the name of the State, with condition for the payment of the money so to be secured in such manner and subject to such provisions as the Court orders, to the end that the money may be secured for the use and benefit of the person or persons who may be entitled to or interested in the same. Upon any recognizance, bond or mortgage so to be taken, a suit may be prosecuted to judgment and execution in the name of the State, but for the use of any person or persons injured by the breach of such recognizance, bond or mortgage, pursuant to the provisions of Chapter 75 of this title.

A Judge of the Court of Chancery may by general or special rule or order direct that any or all moneys deposited with the Court of Chancery in connection with any action in such Court: (1) be deposited in 1 or more interest-bearing accounts or deposits in any bank or savings institution upon such terms as shall be determined by the Court; or (2) be invested in securities of the United States of America of such duration that such money may be available when reasonably required. Any moneys so deposited may be deposited or invested with similar moneys from other actions, provided that records are maintained by the Court to identify the origin of all such moneys so received and deposited or invested.

All income and interest earned on all such deposits and investments are declared to be public moneys and shall from time to time on order of a Judge of such Court be paid to the State Treasurer.

The Register in Chancery in the county in which such funds are deposited or invested shall be responsible for the deposit or investment thereof as provided in this section, provided that the Register shall not be liable for any loss of deposit or investment not caused by his or her own negligence or misconduct.

Nothing contained in this section shall prevent the Court from ordering that moneys deposited in connection with any action be segregated or maintained in a special account or deposit if, in the judgment of the Court, that should be done.

13 Del. Laws, c. 459;  Code 1915, §  3882;  Code 1935, §  4406;  10 Del. C. 1953, §  345;  57 Del. Laws, c. 47970 Del. Laws, c. 186, §  173 Del. Laws, c. 91, §  6

§ 346. Technology disputes.

(a) Notwithstanding any other provision in this Code, and without limiting the jurisdiction vested in any court in this State, the Court of Chancery shall have power to mediate and jurisdiction to hear and determine technology disputes as defined herein when:

(1) The parties have consented to the jurisdiction of or mediation by the Court of Chancery by agreement or by stipulation;

(2) At least 1 party is a “business entity” as defined herein;

(3) At least 1 party is a business entity formed or organized under the laws of this State or having its principal place of business in this State;

(4) No party is a “consumer”, as that term is defined in § 2731 of Title 6, with respect to the technology dispute; and

(5) In the case of technology disputes involving solely a claim for monetary damages, the amount in controversy is no less than $1,000,000 or such greater amount as the Court of Chancery determines by rule.

Neither punitive damages nor a jury trial shall be available for a technology dispute heard and determined by the Court of Chancery pursuant to this section. Mediation proceedings shall be considered confidential and not of public record.

(b) A “business entity” means a corporation, statutory trust, business trust or association, a real estate investment trust, a common-law trust, or any other unincorporated business, including a partnership (whether general (including a limited liability partnership) or limited (including a limited liability limited partnership)) or a limited liability company.

(c) (1) A “technology dispute” means a dispute arising out of an agreement and relating primarily to: the purchase or lease of computer hardware; the development, use, licensing or transfer of computer software; information, biological, pharmaceutical, agricultural or other technology of a complex or scientific nature that has commercial value, or the intellectual property rights pertaining thereto; the creation or operation of Internet web sites; rights or electronic access to electronic, digital or similar information; or support or maintenance of the above.

(2) The term “technology dispute” does not include a dispute arising out of an agreement:

a. That is primarily a financing transaction; or

b. Merely because the parties’ agreement is formed by, or contemplates that communications about the transaction will be by, the transmission of electronic, digital or similar information.

(3) The Court shall interpret the term “technology dispute” liberally so as to effectuate the intent of this section to provide an expeditious and expert forum for the handling of technology disputes involving parties who have agreed to resolve their disputes in the Court of Chancery, whether the parties are seeking to have the Court of Chancery:

a. Mediate the dispute only;

b. Mediate the dispute initially, and if that fails, adjudicate the dispute; or

c. Adjudicate the dispute.

The Court shall adopt rules to facilitate the efficient processing of technology disputes, including rules to govern the filing of mediation only technology disputes, and to set filing fees and other cost schedules for the processing of technology disputes.

74 Del. Laws, c. 36, §  1

§ 347. Mediation proceedings for business disputes.

(a) Without limiting the jurisdiction of any court of this State, the Court of Chancery shall have the power to mediate business disputes when:

(1) The parties have consented to the mediation by the Court of Chancery by agreement or by stipulation;

(2) At least 1 party is a business entity as defined in § 346 of this title;

(3) At least 1 party is a business entity formed or organized under the laws of this State or having its principal place of business in this State;

(4) No party is a consumer, as that term is defined in § 2731 of Title 6, with respect to the business dispute; and

(5) In the case of disputes involving solely a claim for monetary damages, the amount in controversy is no less than $1,000,000 or such greater amount as the Court of Chancery determines by rule.

A mediation pursuant to this section shall involve a request by parties to have a member of the Court of Chancery, or such other person as may be authorized under rules of the Court, act as a mediator to assist the parties in reaching a mutually satisfactory resolution of their dispute. Mediation proceedings shall be considered confidential and not of public record.

(b) By rule, the Court of Chancery may define those types of cases that are eligible for submission as a business dispute mediation. This section is intended to encourage the Court of Chancery to include complex corporate and commercial disputes, including technology disputes, within the ambit of the business dispute mediation rules. The Court of Chancery should interpret its rule-making authority broadly to effectuate that intention.

74 Del. Laws, c. 36, §  2

§ 348. Disputes involving deed covenants or restrictions.

(a) Without limiting the jurisdiction of any court of this State, the Court of Chancery shall, through a Magistrate in Chancery or such other person as may be appointed that Magistrate in Chancery’s designee, mediate disputes involving the enforcement of deed covenants or restrictions when:

(1) An action involving the enforcement of deed covenants or restrictions has been filed with the Court;

(2) At least 1 party is an association or other entity representing the homeowners or lot owners of a subdivision, if such an association or entity exists; and

(3) At least 1 party is a homeowner or lot owner in that subdivision. The mediator shall assist the parties in trying to reach a mutually satisfactory resolution of their dispute. Mediation proceedings under this section are confidential and not of public record.

(b) By rule, the Court of Chancery may further define those types of deed covenant or restriction cases which must be mediated.

(c) Upon the filing of an action involving the enforcement of deed covenants or restrictions, the Court shall schedule a mandatory mediation hearing to be held within 60 days of the filing. If the parties fail to resolve the dispute, the Court shall schedule a trial to be held within 120 days of the failed attempt to mediate the dispute, unless for good cause shown the Court in its discretion concludes that a longer period of time is warranted. A Magistrate in Chancery shall preside over the trial.

(d) The parties to a dispute mediated pursuant to the provisions of this section are not required to be represented by an attorney during a mandatory mediation proceeding.

(e) The nonprevailing party at a trial held pursuant to the provisions of this section must pay the prevailing party’s attorney fees and court costs, unless the court finds that enforcing this subsection would result in an unfair, unreasonable, or harsh outcome.

75 Del. Laws, c. 379, §  170 Del. Laws, c. 186, §  184 Del. Laws, c. 101, § 2

§ 349. Arbitration proceedings for business disputes.

(a) The Court of Chancery shall have the power to arbitrate business disputes when the parties request a member of the Court of Chancery, or such other person as may be authorized under rules of the Court, to arbitrate a dispute. For a dispute to be eligible for arbitration under this section, the eligibility criteria set forth in § 347(a) and (b) of this title must be satisfied, except that the parties must have consented to arbitration rather than mediation.

(b) Arbitration proceedings shall be considered confidential and not of public record until such time, if any, as the proceedings are the subject of an appeal. In the case of an appeal, the record shall be filed by the parties with the Supreme Court in accordance with its rules, and to the extent applicable, the rules of the Court of Chancery.

(c) Any application to vacate, stay, or enforce an order of the Court of Chancery issued in an arbitration proceeding under this section shall be filed with the Supreme Court of this State, which shall exercise its authority in conformity with the Federal Arbitration Act [68 P.L. 401; 68 Cong. Ch. 213, 43 Stat. 883, codified as 9 U.S.C. §§ 1-16, 201-208, and 301-307], and such general principles of law and equity as are not inconsistent with that Act.

77 Del. Laws, c. 8, §  1

§ 350. Voluntary final adjudications before a Magistrate in Chancery.

The parties in any matter may stipulate to a final adjudication of the matter by a Magistrate of the Court of Chancery. In such a stipulation, the parties shall consent that the decision of the Magistrate shall have the same effect as a decision of a member of the Court of Chancery. Appeals from decisions of the Magistrate in a matter governed by such a stipulation shall be determined in all respects by the same procedural and substantive standards as are applicable to appeals from decisions of members of the Court of Chancery.

77 Del. Laws, c. 8, §  184 Del. Laws, c. 101, § 3

§ 351. Voluntary waiver of appeal by parties.

The parties in any matter may stipulate that the decision of the Court of Chancery, or a Magistrate of the Court of Chancery if they so choose, shall be final and binding and not subject to appeal.

77 Del. Laws, c. 8, §  184 Del. Laws, c. 101, § 4