Elon Musk’s dispute with Twitter will go to court in October after Musk tried to back out of a $44 billion deal to buy the company, claiming that Twitter violated “the agreement’s Several Clauses”. That’s where the Delaware Chancery Court, a 230-year-old court that has seen some of the biggest corporate conflicts in history comes into play. There will be no jury or cameras in court. Judges are also rumored not to be bound by legislation.
TransPerfect CEO and co-founder Phil Shawe, who has tried cases before the court, said Delaware Chancery Court cases depend largely on your attorney and the specifics who are trying your case, according to the New York Post. The principal’s relationship. You have dinner with the same people you quarreled with in court. Hunter Biden wrote in an email to the Chinese in 2018: “I will be suing in Chancery Court in Delaware – as you know, this is my hometown, I’ve been lucky enough to work with and know every single justice in the Chancery Court.” According to Shawe, the energy company CEFC was found on his discarded laptop.
He claimed Biden’s emails summed up the court’s reputation, which could decide against Musk and demand “extraordinary performance.” Delaware Chancery Judge Kathaleen McCormick may decide to require him to complete his original agreement to buy the site for $54.20 a share, rather than simply pay the fine and move on, according to New York media reports. According to Reuters, she “has a serious reputation and is one of the few jurists who has ordered reluctant buyers to complete U.S. business mergers.”
What is the Delaware Chancery Court?
According to the court’s official website, the Delaware Chancery Court was established in 1792 and is one of three courts named in the state constitution along with the Supreme Court and the Superior Court. Because it allows for more flexible solutions than the law allows, it is described as a court of equity rather than a court of law.
Twitter chose the court, which filed a 62-page lawsuit against Musk, because the social media company was incorporated in 2007 and the court has extensive experience in business disputes. Comprised of a principal and six vice-principals, the court often hears cases related to wills, adoptions and divorces.
“With more than 1.8 million companies registered in Delaware, in 2021 alone, the First State will add more than 336,000 business entities,” the Delaware Division of Corporations claims.
Musk’s relationship with the Court of Chancery
It won’t be the first time Musk will settle a business dispute in this courtroom. Earlier this year, he won a shareholder lawsuit accusing him of forcing Tesla Inc to buy SolarCity for $3 billion. Musk is SolarCity’s largest shareholder and chairman of the board.
According to earlier reports, Musk hopes to begin testing in February 2023. Twitter asked for a shorter time frame but succeeded. The trial will now begin in October this year and last five days. An exact date has not been announced.