Citizens for Judicial Fairness recognizes the announced retirement of Justice Karen L. Valihura as a significant moment for Delaware’s judiciary. Justice Valihura earned widespread respect for her principled commitment to statutory interpretation, judicial restraint, and respect for the limits of judicial authority. Throughout her tenure, she emphasized that courts must apply the law as written and avoid substituting judicial judgment for lawful business and shareholder decisions.

Justice Valihura consistently warned against judicial overreach, most notably in her dissent in the TransPerfect litigation, where she stressed that courts should intervene only when expressly authorized by statute. She cautioned that expanding judicial power by implication could undermine Delaware’s reputation as a stable and predictable forum for corporate governance.

Those principles were reinforced by her participation in the Delaware Supreme Court’s unanimous decision reversing the Chancery Court’s rescission of Elon Musk’s Tesla compensation package. The Court rejected retroactive judicial interference with informed, shareholder-approved decisions and reaffirmed that Delaware law protects private ordering and freedom of contract.

Justice Valihura’s concerns have proven prescient. In recent years, high-profile companies including TransPerfect, TripAdvisor, Tesla, and SpaceX have left Delaware, underscoring the real economic consequences of legal uncertainty and perceived judicial intrusion into corporate decision-making.

In response to Justice Valihura’s retirement, Citizens for Judicial Fairness released the following statement:

“Justice Valihura’s retirement marks a critical moment for Delaware. She consistently warned about the risks of judicial overreach and the importance of allowing businesses and shareholders to make lawful decisions free from unpredictable intervention. Nowhere was this more evident than in her principled dissent in the TransPerfect decision, where she cautioned against unprecedented judicial interference in private enterprise. Her commitment to judicial restraint protected the rule of law, reinforced confidence in Delaware’s courts, and helped preserve the stability that businesses, workers, and communities rely on. Her leadership will be deeply missed, and it is vital that her successor continue the path she championed.”

Citizens for Judicial Fairness will continue to ensure that Delaware residents, business leaders, and policymakers understand the significance of Justice Valihura’s retirement and the importance of appointing a successor who respects the limits of judicial authority and the freedom of businesses to operate within the law.

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