OPINION

Dear Friends,

For the past few years, I have spent considerable time writing about certain perceived inequities and appearances of impropriety in the Delaware Court of Chancery. I have observed various conflicts of interest between Chancellors and lawyers, unprecedented sanctions imposed on certain litigants, rulings that were clear takings in violation of the Fifth Amendment, and enrichment in the amount of millions of dollars for certain cronies of the Chancellor, rather than providing equity. In my view these problems are untenable and require fundamental change.

Most Fortune 500 companies are incorporated in Delaware, because of the once-respected Court of Chancery. Unfortunately, this Equity Court has become tarnished by the appearances of impropriety that continue to be prevalent. The franchise taxes that come from these incorporations are and have been a bonanza for the State of Delaware. Frankly folks, I believe these financial windfalls are in jeopardy because of the actions of certain Chancellors. Famous Law professor and litigator Alan Dershowitz once said, “Any lawyer who has his client incorporate in Delaware is guilty of legal mal-practice.”

Do the people of Delaware want our famous Court of Chancery to be anything less than pristine? Should there ever be any doubt about bias or corruption within this esteemed institution? In these hard times with out of control inflation, can the State of Delaware afford to lose any revenue? The answers to these questions have to be a resounding “No”.

Folks, all this being said, I write these things because I truly want needed changes in the Court of Chancery. Delaware’s Sussex County is where I was born and raised. I want my state to prosper and do well. Indeed, It will take legislative action to improve the system. I urge more intense vetting of Chancery candidates by the Senate. I urge changes be made to the operational discretion of the Chancellor in regard to existing law and decisions made accordingly. Legislation from the bench is unacceptable.

As we move into 2023, I have hope that the Delaware woke culture evaporates and positive legislation develops that insures true equity in our Delaware Court of Chancery. There has got to be a better way.

I wish everybody on the Coastal Network a very prosperous and Happy New Year.

As always your feedback is welcome and appreciated.

Sincerely yours,

JUDSON Bennett-Coastal Network