By Mike Scarcella
WASHINGTON, Jan 5 (Reuters) - Delaware Supreme Court Justice Karen Valihura, a Republican who has been a strong voice for corporate board defendants in shareholder litigation, said on Monday she will step down in July at the end of her term and will not seek reappointment.
Valihura, who has served on the five-justice bench since 2014, told Democratic Governor Matt Meyer in a letter that she hoped to continue her legal career “in another phase and to continue to serve the public."
The Delaware Supreme Court is one of the country’s most influential business courts, setting rules for corporate governance and shareholder disputes. M ost U.S. public companies are incorporated in the state.
The court, which also hears other civil and criminal disputes, is designed to maintain a partisan balance, with neither political party permitted to hold more than three seats. Justices serve 12-year terms.
"I have always liked the idea of working as hard as I can for the duration of the twelve years and then moving on to do something else and not moving that finish line," Valihura, a former corporate lawyer who was the second woman to serve on the court, said in a statement.
Delaware's reputation as corporate America's capital took a hit amid criticism from Tesla chief executive Elon Musk and others who recommended companies move out of the state, arguing that its evolving legal standards favored investor-driven lawsuits.
Valihura in 2023 wrote the opinion for the court that found Musk did not push the electric vehicle maker to overpay for rooftop solar company SolarCity in 2016.
In a February ruling, Valihura, writing for a unanimous court, said a more corporate-friendly “business judgment” standard should apply to a dispute involving TripAdvisor’s move to Nevada. The ruling was seen as beneficial to companies weighing a move from the state.
Valihura worked for 25 years at Wall Street law firm Skadden Arps prior to her appointment to the court.
(Reporting by Mike Scarcella)
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