Miller cautioned that “nothing like this has ever happened before,” a scenario in which “someone is ordered by Chancery to close a deal and just ignores that order.” But legal deadbeats aren’t uncommon, he said, “and all states and all courts have procedures whereby the winning litigant can ‘execute’ a judgment by moving against the loser’s assets.”
A court judgment Musk refused to pay would become like any other debt, said Charles Elson, a retired University of Delaware finance professor and the former head of the school’s Weinberg Center for Corporate Governance. But seizing Tesla shares to collect that debt could be a long, tortuous legal road, he said.
“There’s no way in the world Delaware is going to lose its franchise as the premier corporate law jurisdiction where contracts are enforced because Elon doesn’t feel like doing it,” he said.
‘Enforcement 40’ for 2020
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