When you think of the business epicenter of America, what place springs to mind? New York City, San Francisco, or maybe Los Angeles?
Those would be good suggestions but oddly enough, a potentially bigger case could be made for the state of Delaware. As Alana Semuels writes for The Atlantic, “Two-thirds of Fortune 500 companies—including Coca-Cola, Apple, and American Airlines—are incorporated there…Their workforces, headquarters, and operations—truly the corporations themselves in anything but a legal sense—are elsewhere.”
So why are big business leaders rushing to file their paperwork in one of the nation’s tiniest states? The short answer is Delaware’s Court of Chancery. This style of court system, which developed in colonial times, is now largely non-existent in the rest of the United States. However, Delaware’s Court of Chancery has been continuously functioning since 1792. One of five judges presides over all cases that make it to the court, and verdicts are reached without the use of a jury.