Update on the Status of the Delaware Litigation Industry in Terms of Changes in State Court Judges
The status of the litigation industry in Delaware in terms of changes in state court judges is covered in a July 30, 2014 post from Edward McNally at Morris James. Delaware of course remains one of the outlier jurisdictions that lacks an abundance of the historic economic advantages (e.g. land, oil, gold, etc), and so it seeks to thrive by creating an industry tied to particular sets of financial interests and related laws. Despite claims that entrepreneurs thrive on risk, the popularity and existence of Delaware and other outlier jurisdictions proves that the opposite is true – investors want to maximize certainty and predicability.
The review of the Delaware industry does not mention other aspects of the Delaware litigation industry. For example, the post does not cover the October 2013 failure of the efforts to create secret Delaware arbitrations runs by Chancery judges. The update also does not cover changes in the Delaware bankruptcy court. For years, Delaware and New York lawyers and businesses built a thriving bankruptcy practice with predictable rulings. The court’s rulings, however, produced a large number of economic failures, according to Professor Lynn LoPucki’s 2005 book: Courting Failure: How Competition for Big Cases is Corrupting the Bankruptcy Courts.