Delaware Court of Chancery
Delaware's specialized business court since 1792. The de facto US business court for corporate-law disputes.
Definition
The Delaware Court of Chancery is a specialized state court of equity established in 1792. Hears corporate, business, and trust matters. No juries; decisions made by the Chancellor and six Vice Chancellors. The Chancery's case law is the foundation for modern US corporate governance.
Context
The Chancery's deep case law and specialized judges make Delaware the preferred state of formation for US public companies and complex business entities.
Example
A merger dispute between a Delaware C-Corp and an acquiring company is litigated in the Court of Chancery. The Chancellor issues a written opinion that becomes part of US corporate-law precedent.
Common pitfalls
- Most non-resident bootstrap LLCs never see the Chancery; the court matters more for the case law than for direct litigation.
- Chancery proceedings require Delaware-licensed counsel.