The Chancery Court of Delaware
Twitter filed notice on 12 July to force Musk to go through with the deal. In other words, they still want Musk to buy the shares at $54.20. The matter goes to Delaware where both Twitter and Musk's companies are registered.
Some backwards and forwards was had as Musk and Twitter tried variously to set the trial date into 2023 (Musk), or in September (Twitter). The final date in the agreement for transfer of ownership, and payment is 24 October. The judge wants it finalised before then.
Musk’s attorneys complained they had been delayed by Twitter in getting discovery documents, and so asked for the date to be pushed to 17 October, a week before the final deadline. The Court agreed.
Delaware is a state in USA which is home to more company registrations than there are people in the state because of its favourable tax laws. Cases heard there are in a commercial court called The Chancery.
It is different from the rest of the country in that those trials are decided by judges as a matter of course, and not juries. The point is that the judges hear only commercial matters, and very well versed in the laws and agreements which result from merger activity.
When Elon wasn't finding traction in delaying into 2023, he asked for the trial to start on Monday 17 October.
- That is week 42 of 2022.
- It is also day 289 of 2022
Musk loves certain numbers. 42 and 69 are his favourites. 42 is a weed community in joke to do with the Hitchhiker's Guide to the Universe.
He jokes an isosceles triangle with two 69 degree angles, must have the 3rd at 42 degrees.
289 divided by 69 is 4.2
But also, disputes in the Chancery Court can be decided on points of equity in addition to the law.
That means less of the dolus eventualis locus standi contra proferentum stuff that has a habit of sticking us in the eye, and more of “what would be the right thing to do?”
Would there be a settlement?
It looks like Musk no longer wants this thing. I mean, what was he thinking? The fastest growing vehicle company in the world, rocket ships to Mars, Starlink, NeuroLink. Why the heck does he need to get involved with the biggest abusive forum ever seen?
The agreement talks about a break-fee of $1Bn. That would be cheap for him, except for two things: He has repudiated the agreement, and reportedly no longer qualifies to pay “only” $1Bn to walk away. Secondly, Twitter is suing for specific performance from him. They want their $54.20.
I wouldn’t bet against them reaching agreement on a settlement before the trial ends, if not before it starts.
Other Elon Musk and Twitter content
Musk is going to Delaware
1 August 2022
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