FROM ENERGY TO ESCHEAT, DELAWARE IN THE NEWS

​by James DeChene

Although the dog days of summer are upon us, there have been some items of interest the last few weeks.
The decision by PJM to review the Artificial Island project for both scope and cost was welcome news. Faced with political and public relations backlash, along with a pending FERC plan review, it was a wise move by PJM to step back and reevaluate. We are hopeful come February 2017 there will be a better, more fairly equitable, plan put forward.

Conversely in unwelcome news, abandoned property was in the headlines again–this time with the State settling the Temple-Inland case, with further potential ramifications on the horizon. We now wait and see how many companies currently under audit choose not to settle, or how many who have settled under a flawed system, choose to attempt to sue to recoup money given to the state. In addition, there’s the remaining contracted years with Kelmar Associates, the auditing firm behind the huge uptick in revenue these last few years, and the pending case at the Supreme Court brought by 21 states challenging Delaware’s escheat process. The state faces a significant reduction in revenues next year as a result, with no clear path to replace them.
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And finally, Delaware’s Chancery Court was in the news related to TransPerfect and the decision to prepare the company for sale. It’s important to note that the Court, and the corporate bar community, have been the gold standard for corporate law for decades, making Delaware internationally known, and respected, as a result. It’s always news when a controversial case is decided, and the hubbub surrounding this decision is no different. It bears remembering, however, that shareholder disputes are settled all the time.
All in all, a fairly exciting few weeks for summertime.