The state of Texas is setting up a new corporate law court with the aim of attracting large firms away from Delaware, the preeminent jurisdiction for incorporations. However, in the lead-up to its official opening, the court is encountering several challenges.
Operational difficulties are evident, including the struggle to secure basic office space. More substantive concerns also arise, such as the short two-year terms for judges and the decision to have jury trials, unlike Delaware where corporate law cases are tried by judges possessing specialized expertise.
Bloomberg News’ Madlin Mekelburg and Bloomberg Law’s Ryan Autullo have discussed these issues on the latest episode of the podcast On The Merits. They delve into why establishing this new court is a priority for Texas Governor Greg Abbott and the likelihood that Elon Musk could be among the first to utilize it.
Intrigued legal professionals can listen to the full conversation here and subscribe to On The Merits across multiple platforms like Apple Podcasts, Spotify, Megaphone, or Audible.