Supreme Court Could Upend Delaware Courts, Corporate Law

The U.S. Supreme Court agreed to review a ruling upending Delaware’s requirement for a politically balanced judiciary and threatening to shake up corporate law over which the state is dominant.

The tiny state is where 60% of Fortune 500 companies and more than 50% of those listed on the New York Stock Exchange are incorporated, according to a brief filed on behalf of Gov. John Carney (D).

Delaware’s importance over corporate matters is due “in no small part due to the reputation—and reality—of the Delaware courts as objective, stable, and nonpartisan,” the Carney told the justices.

But the Philadelphia-based U.S. ...