Under Pressure: Delaware, Corporate America, and Certified Questions
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With an advanced corporate code and a highly respected Court of Chancery, Delaware has long been America’s home for big business. But its status may be in jeopardy. Within the past year, the Court of Chancery has shattered two market practices and reminded stakeholders of the uncertain nature of fiduciary duties.
Corporations have responded. Termed “DExit,” corporations are leaving Delaware for competing jurisdictions, namely Texas and Nevada. Part I of this Comment discusses the gravity of DExit and how a larger exodus of corporations will hurt Delaware taxpayers. It also explains the negative effects of excessive unpredictability. Furthermore, Part I details Delaware’s efforts to increase predictability and how those efforts have fallen short. Part II generally explores certified questions, explaining how certification works, the history of certification, and the arguments for and against certification. Part II also briefly explains how certified questions can fill the gaps that dicta leave untouched. Part III argues that Delaware should allow the Council to certify questions to the Delaware Supreme Court. It first details the Council’s integral role in developing Delaware law and its incentives to ensure Delaware’s continued success while also recognizing the Council’s flaws. It concludes by discussing the necessary changes to implement the proposal.
Derek S. Hubbard *
* J.D. Candidate at the University of Richmond School of Law; B.A., 2022, The College of New Jersey. I am particularly grateful for Professor Jessica Erickson’s encouragement and guidance in drafting this piece. I also thank Casey Feher, the lead editor on this piece, and my Law Review colleagues for their hard work throughout the editing process. Last, but not least, I thank my parents, Scott and Kori Hubbard; my brother, Brett Hubbard; and my many friends at Richmond Law for their support over the past three years.