Arbitration Proceeding Subject to Delaware’s ‘First Filed’ Rule, State High Court Rules

WILMINGTON, Del. — Arbitration proceedings are subject to Delaware’s “first filed” rule, a majority of the state high court has ruled, dismissing an action filed by LG Electronics Inc. against radio communications device manufacturers on the basis that the parties initiated arbitration before LG pursued litigation of the dispute.

In an issue of first impression, the majority, in an April 14 opinion, applied the McWane factors, which warrant a stay where there is already a pending case involving the same parties and issues.

LG Electronics, Inc. sought a declaration from the Delaware Court of Chancery that InterDigital Communications Inc., InterDigital …