“We saw this after the 9-11 attacks and the Great Recession of 2008,” when economic upheaval forced dealmakers to reconsider their plans, Elson said. “It’s well known that Delaware will enforce contracts and properly decide rights under them. That’s why people incorporate here.”
The near shutdown of state courts will complicate matters for dealmakers faced with fast-approaching deadlines to complete their transactions.
“I think you are going to see a bunch of settlements in these cases,” Elson said. “We won’t be seeing trials for awhile, and some of these cases just can’t wait.”
The Anbang case is AB Stable VIII LLC v. MAPS Hotel and Resorts One LLC, No. 2020-0310, Delaware Chancery Court (Wilmington).
This article was provided by Bloomberg News.