WILMINGTON, Del. — A recent study has found that Delaware is losing its status as a leading state for corporate litigation.
For the last 15 years, an affiliate of the U.S. Chamber of Commerce has ranked Delaware the top state among corporate attorneys and executives, but the state dropped to eleventh place in this year’s survey by the Institute for Legal Reform.
Corporate law experts say the problem is with state legislators, not the judiciary. They cite actions taken by the Legislature over the past few years that have affected businesses, including a recent corporate tax increase.
Corporate litigation is a significant source of income for Delaware. Businesses that choose to incorporate in Delaware pay taxes and fees to the state. That accounts for nearly one-third of the state’s budget.