Picture this: You start a small business. You follow all the rules, make all the right decisions, and then get sued anyway. Welcome to the world of corporate lawsuits, where Delaware’s courts have made it easier than ever for lawyers to second-guess your business decisions.
But here in Nevada, we do things differently. And conservatives who believe in limited government should take notice.
What Happened in Texas That Matters Here
A recent federal court case in Texas tells us a lot about why companies are fleeing Delaware for our state. Two Nevada companies wanted to merge. A shareholder sued, claiming the deal wasn’t fair because the same guy ran both companies.
In Delaware, this kind of lawsuit usually succeeds. Their courts assume you’re guilty until proven innocent. You have to prove your deal was totally fair, which costs tons of money and time.
But here in Nevada, we said no. Our law is simple: business leaders make business decisions. Unless someone can prove actual fraud or intentional wrongdoing, the courts stay out of it.
Read our prior coverage:
Nevada Secretary of State Aguilar Chases Delaware Corps With Your Tax Dollars
Why Delaware’s System Is a Problem
Delaware has something called “judge-made law.” This means courts create new rules as they go along. It’s like playing a game where the referee makes up rules during the match.
Delaware’s approach is backwards. If someone claims a business leader had a conflict of interest, the business has to prove everything was completely fair. This costs massive amounts of money in legal fees and takes years to resolve. Business leaders spend time in courtrooms instead of growing their companies.
This is exactly what we conservatives oppose about big government. Unelected officials creating rules that hurt businesses and entrepreneurs. It goes against everything we believe about limited government and property rights.
Our Better Way
Here in Nevada, we took a different path. Our laws are written down in black and white. No surprises. No judges making up new rules as they go.
Our system says business owners make business decisions. Courts only step in for real fraud or crimes. The burden of proof stays on the person making accusations. This encourages business growth and investment.
It’s the same principle we conservatives apply to government everywhere. Clear rules, limited power, and respect for property rights. We don’t want judges micromanaging business decisions any more than we want bureaucrats micromanaging our personal lives.
The Stakes Keep Getting Higher
More companies move from Delaware to Nevada every year. Recent proxy statements show businesses explicitly citing our clearer laws as a reason to leave Delaware behind. This trend matters because it shows how legal systems affect economic growth.
States with business-friendly laws attract more investment. Clear rules help small businesses compete with big corporations. Limited court interference protects property rights. These are core conservative principles in action.
Critics say we go too far. They worry shareholders won’t have enough protection. But we’ve proven you can protect investors without turning every business decision into a lawsuit lottery. Our approach strikes the right balance between accountability and freedom.
What This Means for the Future
As more states watch our success, we’ll likely see other states copying our approach. Delaware might even be forced to reform its system to compete. More businesses will choose states with clearer laws, creating stronger protections for entrepreneurship nationwide.
Judge Charles Eskridge’s ruling in Texas shows how federal courts recognize our approach as legitimate. This gives other states confidence to follow our lead. The momentum is building for a nationwide shift toward clearer, more limited judicial involvement in business decisions.
What We Conservatives Can Do
Supporting our Nevada-style corporate law aligns perfectly with conservative principles:
- Support candidates who understand how legal systems affect business growth
- Educate others about the connection between clear laws and economic opportunity
- Push back against expanded judicial power in business matters
The fight between Delaware and Nevada isn’t just about corporate law. It’s about whether unelected judges should control business decisions or whether clear, limited laws should protect property rights and economic freedom.
We’ve shown everyone a better way. We’ve proven that protecting businesses from judicial overreach doesn’t hurt shareholders. It helps everyone by encouraging growth and innovation.
This matters to every conservative who believes in limited government, clear rules, and the right to run your business without judges micromanaging every decision. We should be proud of what we’ve built here in Nevada and work to protect it.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
