Professor Bainbridge...on law, politics, religion, culture & food

Delaware’s Dominance

One explanation for Delaware’s domination of the market for corporate charters is that it offers a highly expert court capable of making fast decisions. Case in point: United Rentals, of which Francis Pileggi observes:

In United Rentals, Inc. v. RAM Holdings, Inc. (Cerberus ), (Del. Ch., Dec. 21, 2007), read opinion here, the Chancery Court rejected a claim for specific performance in a 68-page opinion that is destined to be a seminal decision on issues of contract interpretation and contract drafting.  ... Among other things, this opinion shows how quickly the Chancery Court, in appropriate circumstances, can schedule a trial and issue a decision involving hundreds of millions of dollars within a few short weeks of the complaint being filed. The complaint in this case was filed, and discovery and a trial took place, as well as a summary judgment motion disposed of (by written decision here), and a final post-trial decision issued, all in about 30 days.

That’s one big reason Delaware is # 1.