PHILADELPHIA (AP) - A federal appeals court is set to hear arguments in an appeal by Delaware's Chancery Court judges of a federal court decision declaring that a state law allowing them to oversee secret arbitration is unconstitutional.
A federal judge last year agreed with the Delaware Coalition for Open Government that the secret proceedings violated the rights of citizens to attend judicial proceedings and access court records. The judge said the Chancery Court, which often presides over high-profile business disputes involving some of the world's largest corporations, cannot conduct secret arbitration.
The law that was struck down allowed secret arbitration in disputes involving damage claims exceeding $1 million.
Attorneys for the state argued that secret arbitration made the court more efficient and generated revenue for Delaware, corporate home to thousands of companies.
