Friday, February 12, 2010
Business Courts in the United States and Around the World
The Delaware Model
The Delaware Court of Chancery, created in 1792, was the first business court established in the United States. The Court of Chancery has broad jurisdiction over disputes involving the internal affairs of Delaware business entities, disputes arising in corporate matters, trusts, estates, and other fiduciary matters, disputes involving the purchase and sale of land, questions of title to real estate, and commercial and contractual matters in general. It also tackles technology disputes arising out of agreements involving at least one Delaware business entity. Once a case has been filed and it concerns a business matter there is a presumption that the case belongs in the Court of Chancery at the time of filing; however the Chancellor/Vice Chancellor has discretionary authority to transfer the case to Superior Court.
The Court of Chancery has been a model for other business courts to follow and apply their own specific adaptations to meet the growing needs of commercial litigants. Recently, in order to become more responsive to the needs of the large number of businesses which have organized in the state, the Delaware Court of Chancery has expanded its jurisdiction to hear and mediate technology-related disputes over $1 million upon mutual agreement of the parties, provided at least one of the parties is a Delaware business entity. It is also appropriate that Delaware would be the birthplace of such a court considering the unparralled amount of business that takes place in the State.
Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.