Why Texas Business Court Will Struggle to Top Delaware

On The Merits

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2M ago 19:03

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The state of Texas is creating an entirely new corporate law court in an attempt to lure big firms away from Delaware, the current incorporation capital of the world. However, just days before its official opening, there's trouble with the new court's rollout.

It's been difficult for the state to find basic physical office space for the Texas business court to operate in. But beyond that, there are also questions about why its judges are serving only short, two-year terms and why, unlike in Delaware, trials will be heard by juries and not by judges with more corporate law expertise.

Bloomberg News' Madlin Mekelburg and Bloomberg Law's Ryan Autullo just wrote a story about this trouble and they join this episode of our podcast, On The Merits. The reporters talk about why standing up this new court is a pet project of Texas Governor Greg Abbott (R) and why one of the first litigants to try it out may be Elon Musk.

Do you have feedback on this episode of On The Merits? Give us a call and leave a voicemail at 703-341-3690.

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