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A Delaware judge has ruled that corporations have a right to vote. I have not yet had time to read the decision yet, but this seems to upend a lot of norms around voting in the US.
My immediate question is what... what the hell? This seems like a fairly bold decision on the part of the judge, and one that normally would not be issued by a state Superior court judge. Is there some kind of inside baseball that I'm missing here? I know that Delaware is very friendly to corporate interests, but this seems like an escalation. Is this a decision that's meant to be overturned?
It helps to read the decision. Relevant background:
The judge did not find some generalized right to vote for corporate entities. Rather:
1. In 2008 the Delaware legislature amended a town's charter to permit voting by certain corporate entities that owned property in that town.
2. The ACLU sued claiming the Delaware constitution only permitted natural persons to vote.
According to the judge's analysis:
1. The Delaware Constitution's Election Clause consists, in its entirety of "All elections shall be free and equal."
2. Who is eligible to vote in a municipal election is generally governed by a municipality's charter (under Delaware state law).
3. Permitting non-natural-person voters does not violated the text of the Election Clause in the Delaware Constitution.
Apparently, there are other municipalities in Delaware that have similar arrangements. The judge mentions the City of Wilmington explicitly. The judge only briefly mentions the corporate personhood thing since it's not essential to their analysis, but the ACLU argument relies heavily on it.
The question is less "do corporations have the right to vote?" and more "does the Delaware constitution forbid the Delaware legislature from giving corporations the power to vote in municipal elections?"
I'm finally sitting down over lunch to read the decision. What would stop a company from forming 10,000 subsidiaries that jointly owned a single piece of property in common?
Nothing obvious. But what would stop a natural person from splitting a property between 10,000 natural people in the same manner?
It wouldn't be practicable. The more people who own a piece of property, the harder it gets to make decisions about the property, and get the owners to contribute money for upkeep. A dispute would inevitably develop, and the result would be that one of the owners files a partition action and the whole property is sold.
I'm imagining a situation where one person owns an outright majority of the property and each of the other 9999 owns only a minuscule proportion, so that the majority owner has more than enough wealth on his own to conduct maintenance unilaterally and to thwart a partition action by buying out the objector.
And what's the motivation for the majority owner to do this? He'd be giving equal access to the property to 9999 other people while being prepared to do unilateral maintenance, and if they don't contribute he's going to pay a 5-figure sum to conduct a partition action where he might not even be the high bidder. So he can...give his friends votes for the Fenwick Island town council? If I'm one of the 9999 I'm there to get access to the property and I could probably care less about some local election.
I was assuming that such a partition would work like the procedure laid out in the Uniform Partition of Heirs' Property Act, in which the judge orders an appraisal and the majority owner can buy out the objector at that price without any bidding. But obviously I am misunderstanding how partitions work.
I would imagine that --in theory -- one could draft a detailed tenancy in common agreement to get around these sorts of issues. The minority owners would lease back their occupancy rights to the majority owner; they would agree that in lieu of partition, they could demand a reasonable payment in exchange for their ownership rights; and so on.
The bigger problem -- in my opinion -- is that the whole thing is an obvious sham. When 1000 voter registrations showed up at the town clerk's office, all based on ownership of the same property, there's a good chance that the town clerk would simply refuse to process them. And that if you brought suit, the judge would find a reason to rule against you. Even if somehow you got the voter registrations accepted, it's highly likely that the legislature would amend the voter rules in short order.
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