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>Delaware, being the hub of all sorts of business litigation, sees things at a more abstract level. You're less likely to get a judge or jury in Delaware that c
by froindt 9y ago
>Delaware, being the hub of all sorts of business litigation, sees things at a more abstract level. You're less likely to get a judge or jury in Delaware that comes in with a particular preconceived notion of X or Y being bad.
There are also some problems which come from so much being litigated in Delaware. I have been working with a bankruptcy attorney looking at venue laws which run into similar issues as patents. As many patent lawsuits have been filed in Eastern Texas, many bankruptcies are filed in Delaware even if there is no functional basis for the company there outside of the state of incorporation.
By running everything through Delaware, you're often taking the chance of reasonable representation away away from defendants (or creditors in the case of bankruptcy). If a company who only has facilities in Iowa goes belly up, there are likely dozens of companies who they owe money to, many of which are in the surrounding communities. Now the hundreds of farmers who are owed money have to fly to Wilmington Delaware if they want any chance of representation.
Delaware Bar will require that a local attorney introduce whatever attorney from Iowa was hired to represent the farmers (if the Iowa attorney is competent, the Delaware attorney is literally introducing them and reviewing some documents before submission). Local council adds another expense for small businesses on the short end of a bankruptcy.
The geographic difference adds significant expense in terms of travel. The VeraSun grain elevator case had a company headquartered in South Dakota with no operations east of Indiana and they filed in Delaware. There are other cases with even larger geographic differences out of California and Hawaii.
Marsh supermarkets is headquartered in Indianapolis, Indiana and recently filed for bankruptcy in Delaware. They have thousands of employees, but only about 250 are salaried, the rest are hourly, largely store employees. Many of them are owed money from working their normal shifts. It will be very hard for the employees to feel like they had a chance at getting fair representation if they have to go to Delaware to see court proceeding happening. It could just as well have been held in Indianapolis with local attorneys representing hourly employees at a more reasonable total expense.
Finally, a disproportionate amount of power in deciding bankruptcy or patent cases should not lay in the hands of a few judges. We've already seen what happens when a single judge has vastly different views on a given topic than pretty much anyone else with the mess of patent trolls in Eastern Texas. That one judge cost companies hundreds of millions to billions of dollars in cases which would have seen a different result if heard by a variety of judges from across the country. By running everything through Delaware, the concept of various opinions from across the nation being debated through many cases and going to appeals where needed goes out the window. A handful of judges in Delaware will decide what happens in the nations most significant bankruptcy and patent cases.
- sbov 9y agoYeah, I'm not a lawyer but a small set of judges hearing such a large number of a type of case seems to run counter to what they attempt to set the legal system up as. It runs counter to the geographically distributed system and it runs counter to some of the criticisms of how to split up the 9th circuit (e.g. giving California it's own circuit is looked at as a poor solution). Given that I don't see how it's a positive thing at all.
- jacquesm 9y agoIn this case it worked out bad. But it could also work out well: Judges, just like software developers or any other profession have specialties, and a judge that is well versed in patent cases should be able to reach a better verdict quicker than someone who is new to patent cases.
- rudyfink 9y agoThough, in the nature of legal cases, "work out well" is relative. While one side might appreciate a court that provides a "better verdict quicker" the other side would almost certainly decry that court, since they, for example, would have less time before the verdict and, presumably, less of a chance of successfully appealing it.
- PatentTroll 9y agoMany district courts have designated judges for patent cases to try to take advantage of this
- joe_the_user 9y agoWell, the thing with having judgment flowing through Delaware is that whatever corporations have incorporated there have chosen that venue. Specialization isn't bad thing, merely specialization which results in one-sided processes. Delaware already specializes as venue for corporations to incorporate in (why it looks like suits will head there). If Delaware winds-up offering an unfair venue for patent defendants, those defendants can incorporate elsewhere but they'd lose Delaware's other advantages.