Delaware’s courts are going through a period of rapid change. While it is too early to decide whether those changes are for the better, some preliminary comments are possible. In general, the recent events are a cause for optimism that Delaware is maintaining its position as the best forum for corporate litigation. There is, however, one dark cloud on the horizon.
The Sources of Delaware’s Strength
Delaware has been a good place to litigate. The Delaware courts have been staffed with able judges well-experienced in the types of business disputes filed in Delaware. For example, Delaware is the leading jurisdiction for appraising the value of corporate stock in damage actions. That is often a complex matter and not easily done by those courts that seldom value corporations. You can predict fairly well what your client will get or pay, if you are in the Delaware Court of Chancery. Similarly, the interpretation of director and officer insurance policies is critically important to those corporate officials. The Delaware Superior Court has many decisions dealing with those policies and a predictable approach to resolving disputes. Hence, an increasing number of D&O policy disputes are being filed here.
