JD Reed quoted in Axios article about Elon Musk, Tesla Re-Incorporation, and Texas Business Courts

Holmes Shareholder JD Reed was interviewed recently (and quoted) by Axios for his take on the new Texas Business Courts. Will Texas beat out Delaware for “most favored state” status for complex business litigation?

In the context of the article, Elon Musk has expressed his desire to change Tesla’s incorporation from Delaware to Texas because he sees Texas courts as more favorable to his interests. You can read the article here: https://www.axios.com/2024/01/31/elon-musk-tesla-delaware-court-texas-law

New Texas Business Courts

As our newsletter audience will recall, JD wrote about the new creation of Texas Business Courts. House Bill 19 created these Business Courts to address a fast growing need for better business litigation capacity in the Texas court system. The Business Courts serve a similar purpose to the famed Delaware Court of Chancery system.

So will Texas Business Courts create competition for Delaware?

As JD pointed out both in his article and the Axios article, time will tell. Texas is starting out with five business courts (and a specialized Court of Appeals). Funding for more is based on their success.

Stay tuned. Business litigation is a core practice for us. We’ll keep you informed as these courts get started.