Leo Strine, a jurist known for his colourful opinions involving business disputes, has been nominated to the highest state court in Delaware, an appointment that would considerably broaden his influence over US corporate governance.
Jack Markell, Delaware governor, cited his "superior intellect, incredible work ethic, and substantial judicial experience" in announcing the nomination.
Mr Strine, chief of Delaware's chancery court, is known for his outspoken, activist, and off-the-beaten path remarks in court decisions that have at times landed him in controversy.
In November 2012 he referred to a dispute between fashion designer Tory Burch and her ex-husband Christopher Burch over his rival fashion chain as a "drunken Wasp fest."
He was rebuked that same month by the state supreme court, which admonished him for side commentary in a different case stating: "to the extent Delaware judges wish to stray beyond those issues . . . there are appropriate platforms, such as law review articles, the classroom, continuing legal education presentations and keynote speeches."
If confirmed by the state senate, Mr Strine's appointment will probably be welcomed by the business community, which has at times fallen on the wrong side of Mr Strine's barbs but has won favourable outcomes. Shareholder groups have expressed scepticism of his appointment, a person familiar with the matter said.
The supreme court hears appeals from all state courts including the chancery. With more than 50 per cent of all US publicly traded companies incorporated in the state, Delaware judges set the tone for most corporate governance decisions and business disputes.
Mr Strine recently sided with Dell management in rejecting shareholder activist Carl Icahn's effort to delay and derail the $25bn management-led takeover of the computer maker.
He criticised Goldman Sachs for its conflicted role advising El Paso, an oil and gas company, in its purchase of a pipeline from Kinder Morgan. Goldman was on both sides of the deal - its funds held a 19 per cent stake in Kinder and had two directors on its board. Despite calling Goldman's handling of its conflicts as "incomplete and inadequate", Mr Strine allowed the transaction to proceed.
"It's the most important judicial position for decisions about corporate governance and the responsibility and duties of directors in the country," said John Olson, a lawyer with Gibson, Dunn and Crutcher who advises directors.
Mr Strine "has suggested that the corporation should be viewed as an instrument for good, a structure that has served as extremely well, but it needs to operate with the consensus of all of the groups impacted by it. Not just investors but employees and the community," Mr Olson said. "It will be interesting to see how he applies that" in his new position, he said.
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