Corporations can vote in some Delaware elections, judge says

(news.bloomberglaw.com)

73 points | by marcher 1 hour ago

22 comments

  • rc-research 1 hour ago
    > Visions of faceless large corporations or even HAL controlling a small town are frightening and the stuff of science fiction.

    Company towns are well-recorded history, not science fiction. Lost Hills California (home of Wonderful Pistachios) exists in the real, present, non-fictional world.

    • roxolotl 43 minutes ago
      That does not make it not frightening nor not the stuff of science fiction. We know how awful corporate towns are that’s partly why cyberpunk is what it is.
  • cwmma 1 hour ago
    It's specifically about corporations that own property in a specific town voting. So no you can't just spin up a bunch of LLCs to rig an election, this is about the rights of absentee landlords.
    • ceejayoz 1 hour ago
      > So no you can't just spin up a bunch of LLCs to rig an election…

      Sure you can. You just have to sell them some land as part of it.

      • davkan 6 minutes ago
        Why become a lord in Scotland when you can become a voter in Delaware.
    • Hizonner 43 minutes ago
      How about fuck absentee landlords, especially if they're not actually people?
      • Avicebron 28 minutes ago
        Seriously, there should be exceptions for the rare case it's an actual person who can't go for an actual reaaon
    • righthand 1 hour ago
      And when my plot of land is co-owned by my 100 shell corporations?
      • cwmma 13 minutes ago
        I don't think this is a good opinion or anything, but issues with vote dilution were expressly addressed in the opinion.
      • nh23423fefe 1 hour ago
        Why are you pretending this argument wasn't addressed in the opinion?
        • ceejayoz 1 hour ago
          But it wasn't, really.

          > Where a voter is entitled to vote by virtue of being both a resident and as an owner of real property, that voter shall be entitled to only one vote; where a voter is entitled to vote by ownership of two or more parcels of real property, that voter shall be entitled to only one vote.

          > Any legal entity other than a natural person entitled to vote, must cast its vote by a duly executed and notarized power of attorney from the legal entity granting the authority to cast its vote to its designated attorney-in-fact… The person casting the ballot for such entity shall be age 18 on or before the date of the election and a citizen of the United States.

          That just means I have to give 100 people POAs.

          • forgetfulness 53 minutes ago
            Also what constitutes ownership here? Couldn't some Enterprising Individuals open 100 shell companies, pool together resources and form the Legalize Asbestos Consortium, the Consortium buys a plot of land and then each stakeholder of the Consortium counts as an owner of the plot of land?
            • joshkel 41 minutes ago
              FWIW, it sounds like the judge may be open to ruling against such an action. From his decision at https://aboutblaw.com/blQg:

              > Even if Plaintiff had made a “vote dilution” or “one person/one vote” claim under the Equal Protection Clause, it fails. Plaintiff does not assert facts that would adequately support such a claim. Plaintiff does not allege... that natural person voters are a minority or are politically cohesive [or] that entity property owners vote sufficiently as a bloc to usually defeat the preferred candidates of natural persons.

              Although he also notes that the recent Callais case, severely weakening section 2 of the Voting Rights Act, may change this - and, of course, waiting until the Legalize Asbestos Consortium is doing its thing and trying to file a lawsuit is much more complex than preemptively saying "only natural persons can vote."

        • rithdmc 59 minutes ago
          I didn't see anything about this in the opinion.

          It does say that multiple owners of a single property can not have their voting rights apportioned by value, as this would be dilution or would not fit one person/one vote.

  • John7878781 1 hour ago
    This sounds completely absurd. What's stopping me from starting up a bunch of LLCs or Trusts to rig the vote?
    • nh23423fefe 1 hour ago
      Read the opinion.

      > I appreciate that Plaintiff may disagree with Delaware’s policy of authorizing certain municipalities to allow voting on behalf of entity property owners. Visions of faceless large corporations or even HAL, 55 controlling a small town are frightening and the stuff of science fiction. However, Plaintiff has not demonstrated that this policy violates the principle of one person/entity/one vote.

      • josefritzishere 50 minutes ago
        It fundamentally violates one person/entity/one vote. Corporations are not sentient. If you let them vote, a person gets to vote twice. There's no way around that conflict. I feel like this has to collapse on appeal or the nation is doomed.
        • nh23423fefe 33 minutes ago
          > a person gets to vote twice.

          how do they do that?

          • Refreeze5224 25 minutes ago
            The owner votes as themselves, and again as the corporate entity.
            • ceejayoz 15 minutes ago
              No. Per the ruling:

              > Where a voter is entitled to vote by virtue of being both a resident and as an owner of real property, that voter shall be entitled to only one vote; where a voter is entitled to vote by ownership of two or more parcels of real property, that voter shall be entitled to only one vote.

              However, that seems to get messy with multi-owner LLCs where you might give 1% of each LLC to a bunch of your buddies and have them each vote as POA for theirs.

          • kjkjadksj 26 minutes ago
            Whoever dictates the company vote then votes for themselves.
      • pessimizer 55 minutes ago
        The answer to the question asked is not here. Accusing somebody of seeing "visions" is not an answer, it is an evasion.
    • cwmma 1 hour ago
      It sounds like you it's only corporations that own property in the town that get to vote. So that's probably whats preventing you.
      • ceejayoz 1 hour ago
        Wonder how long it is before there's a vote to allow the sale of inch-square lots.
        • NDlurker 53 minutes ago
          Exactly. Same thing as offices set up to register out of state businesses.
        • mindslight 1 hour ago
          IANAA. It would seemed to be recorded, not registered, land. Which means I wouldn't think approval would be required in the first place (the lot isn't going to be buildable though, of course]
      • SkyPuncher 48 minutes ago
        Owning property through a corporation is trivial. 3 of my nearby neighbors are owned via an LLC (rentals).

        * Start an LLC/C-corp for a trivial amount of money.

        * Purchase land, but instead of paying with it via a personal check, you need a touch of foresight so you can "capitalize" the corporation you just started. Write the check from the corporation, instead of your personal checkbook.

        • cwmma 9 minutes ago
          yeah so it sounds like if you did this IN THIS TOWN and didn't also live in the town you'd get a vote. I'm not sure if you'd get a vote if you owned the land directly but for all I know you might.
      • SoftTalker 1 hour ago
        I own property in a nearby town but it's an investment; I don't live there. I'm unable to vote in their local elections. I have not heard of property ownership being a qualification to vote since the 1800s.
        • Hugsbox 47 minutes ago
          Which makes sense... why should anyone get a say in the local matters of a place they don't even live in?
          • SoftTalker 29 minutes ago
            I own property there, I pay property taxes there (at the highest "non-owner-occupied" rate), in my case I'm actively operating a business not (just) a passive investor. Why should I have zero say in how those taxes are spent, or other local governance? I'm not a disinterested bystander.
          • rayiner 28 minutes ago
            That’s a fair point, but the ACLU didn’t challenge that aspect of the municipal charter.
    • dfxm12 1 hour ago
      A quick Google search suggests Fenwick Island has ~400 residents. The only thing stopping you would be someone else with more resources.
    • tekla 1 hour ago
      Should start a bunch of unions to rig the vote.
  • MattCruikshank 40 minutes ago
    I was daydreaming about, picture if a corporation buys an entire state.

    Say, Wyoming or West Virginia. Gemini guesses $180 billion to $250 billion.

    With that investment, they'd get to control who lives in the state.

    So, then the corporation gets to control who the Governor is. And the two Senators, and the seat in the Congress.

    Forgive me if I'm wrong, but doesn't a single Senator have just a tremendous amount of power to block basically any legislation? With pocket vetoes, or silent filibusters?

    Granted, actually buying a Senator is probably cheaper by a few orders of magnitude.

    • ceejayoz 37 minutes ago
      Senators can't veto, and filibusters require 40 other Senators to play ball.

      The Constitution also overrides any attempt to prevent interstate migration.

      • bwestergard 30 minutes ago
        "The Constitution also overrides any attempt to prevent interstate migration."

        Sure, but if there is no where you can legally stay, because the sole landowner prohibits it, how do you migrate?

        • ceejayoz 27 minutes ago
          Sure, if we ignore how we get to "the sole landowner" scenario, which is a big hole in the thought experiment.
    • kjkjadksj 27 minutes ago
      Look up Vernon CA history. It is pretty much this where there are a couple city owned residential properties, rest of city is nearly purely industrial, and tenancy of these tightly controlled to shape local election outcomes.
    • dfxm12 33 minutes ago
      FWIW, you have a risk of losing your senator every 6 years, and senators don't have power in local matters.

      Plus, the way things are going with conservatives pushing hard for federalism, owning local matters could become more important, anyway. You might be onto something...

  • rayiner 1 hour ago
    I don’t understand why people have so much trouble understanding that a “corporation” is just a proxy for the humans that own and control the corporation. In this case, non-residents who own a house on the island can vote according to the charter. The charter just says that this doesn’t change because you move ownership of the house into a legal entity that some human then owns and controls.

    The actual grievance seems to be unrelated to the corporation itself. People just associate “corporations” with rich people, and they won’t want rich people to vote.

    • klaff 1 hour ago
      Is this rich person also voting in the place where they actually live? I'm not against a rich person voting, I just don't want them to get more than one vote. I haven't read the opinion to see if that's addressed.
      • rayiner 44 minutes ago
        The town charter allows double voting in municipal elections because it allows non-residents to vote.
    • craftkiller 53 minutes ago
      > they won’t want rich people to vote.

      I don't think anyone would object to a rich person casting a single vote and maybe putting a bumper sticker on their car or a sign in their yard. The issue people take with the rich and politics is the outsized influence they wield in elections. The whole "one person one vote" thing falls apart when the rich can throw millions at advertisements and millions at the "charities" run by the politicians they bought.

    • abejfehr 59 minutes ago
      > ... they won’t want rich people to vote.

      I think it might be more than that

    • esikich 52 minutes ago
      Does a corporation need healthcare? Can a corporation be jailed? Does a corporation have a finite life in which they can pursue happiness? Does a corporation have offspring it's trying to raise? Does a corporation have hopes and dreams? Does a corporation wish to visit a park or visit with their neighbors? Are you for real?
      • Gormo 11 minutes ago
        Replace "corporation" in each of your questions above with "organizational model employed by people as a mechanism for coordinating complex activities", and the answers should all become clear.

        Much of the discourse on this topic involves muddled, contradictory thinking that simultaneously argues "corporations aren't people" and "corporations are exercising autonomous agency as singular entities distinct from the people who constitute them". These two premises cannot both be true.

      • rayiner 27 minutes ago
        No, but the people who own and control the corporation all do.
    • SkyPuncher 44 minutes ago
      The problem is voting has historically been limited to, real, living things. This has inherently limited the total amount of votes cast and where.

      Corporations are an artificial entity that literally anyone can make. Even things like property ownership are somewhat artificial. Lots can generally be split and joined through a process.

      This allowance of artificial entities voting seems to open a rabbit hole of secondary issues.

    • trinsic2 54 minutes ago
      The problem is corporations mostly don't have the same interests in communities as people and they are motivated by other concerns that can run counter to the good of society. So yea.
    • wat10000 54 minutes ago
      If the corporation is just a proxy for the owners then why is this in court? Why aren't the humans just voting directly? It's well established that it's OK for humans to vote.
      • rayiner 51 minutes ago
        Because the municipal charter in question confers to vote on the property owner. Which might technically be a corporation.
        • wat10000 43 minutes ago
          The question is, why did they bother to take it to court instead of just transferring ownership directly to their persons and then voting as humans? If corporations are just proxies then why bother with the lawyers and the court fees and the time?
          • rayiner 18 minutes ago
            Because they want the other benefits of the corporate form. Why should they have to choose between the benefits of the corporate structure and exercising the rights the municipality has given property owners?
            • ceejayoz 8 minutes ago
              > Why should they have to choose between the benefits of the corporate structure and exercising the rights the municipality has given property owners?

              Why shouldn't they?

              They're trading one benefit for another.

              The individual house owners don't get all the benefits of an LLC for similar reasons.

      • tiahura 51 minutes ago
        because the city of Fenwick Island decided it wanted to set things up a different way, the ACLU challenged, and the judge said the city can it up how they want to.
        • wat10000 48 minutes ago
          The question is not what the law says (the headline is sufficient to understand that), but why people are doing this at all. If corporations are just proxies for their owners, then owners who want a vote could just own the property in their own name rather than their corporation's and problem solved. There is some reason they don't do this. I want rayiner to spell it out for me, because that "a corporation is just a proxy" line is 100% horseshit.
          • rayiner 31 minutes ago
            > If corporations are just proxies for their owners, then owners who want a vote could just own the property in their own name rather than their corporation's and problem solved

            Exactly! They could do that, so the law shouldn’t treat the two situations differently. You just proved my point, not yours.

            > There is some reason they don't do this

            I’m sure they have many reasons. But that doesn’t change the fact that the corporation is a proxy for people.

            Your real argument seems to be that you think people should have to choose between exercising their rights and having the protections of the corporate form.

            • wat10000 25 minutes ago
              "Protections of the corporate form"? You mean they aren't just proxies?
              • rayiner 15 minutes ago
                The fact that the corporate form has other benefits doesn’t mean that the corporations aren’t proxies for the purposes relevant here.
              • malcolmgreaves 9 minutes ago
                Got ‘em!
    • tiahura 54 minutes ago
      When I hear people grouse about the concept corporate rights, I always ask them why they hate New York Times _Co._ v. Sullivan.
      • ceejayoz 49 minutes ago
        And they scratch your head and say "but... that ruling applies to regular people, like NYT staff and you and me."

        It simply sets a high standard for proving defamation claims by public figures.

        • rayiner 48 minutes ago
          “NYT” staff don’t publish the paper, the corporation does.
          • ceejayoz 42 minutes ago
            Irrelevant.

            New York Times Co. v. Sullivan - and the First Amendment it draws upon - applies to everyone, regardless of what corporation they may or may not work for. An unemployed person is protected from defamation claims by public figures under it just fine.

            It does not establish any special corporate rights.

            • rayiner 20 minutes ago
              Sullivan absolutely establishes corporate rights. Otherwise, Trump could enact a ban on “fake news” and say it applies only to the corporation itself, not the staff. The staff can write whatever they want, but the corporation can’t use its printing presses, etc., to disseminate what the government considers fake news.
              • ceejayoz 13 minutes ago
                > Otherwise, Trump could enact a ban on “fake news” and say it applies only to the corporation itself, not the staff.

                That's some really tortured logic.

                Such an act would simply be a violation of the First Amendment (and Article I, for that matter). The corporate nature of its target is, again, entirely irrelevant.

                Sullivan sets a high standard for defamation claims by public figures. That's it. They protect you saying defamatory things about Hillary Clinton as long as you don't write down "I know this is false and I'm defaming her because I hate her guts" explicitly somewhere.

    • Hizonner 39 minutes ago
      ... and if they own 50 houses, each through a separate LLC, they can vote 50 times, even if they do not in fact even live in the area.

      ... and you can probably come up with a legal way to permanently bind a corporation to vote according to specific rules.

      ... and larger corporations have totally inhuman internal decision making processes that frequently arrive at conclusions no human would reach.

    • condis 51 minutes ago
      [flagged]
  • swampthing 47 minutes ago
    To save everyone some trouble, "some Delaware elections" refers to elections in a town that amended its charter to explicitly allow legal entities to vote.
    • rayiner 46 minutes ago
      More accurately: the town charter allows non-residents to vote if they own property on the island, even if the property is owned through a corporation.
  • davidw 58 minutes ago
    Having corporations be distinct entities whose investors have limited liability is a pretty fundamental to a lot of things. But voting? That is way too far.
    • SoftTalker 38 minutes ago
      If a corporation owns property somewhere but none of its owners actually live there, the corporation itself still obviously has an interest in local governance. It sounds like this locality has decided that property ownership qualfies the owner to a vote. Not all the investors in that corporation get to vote, rather the corporate entity, as a singular thing, gets one vote.

      One can imagine all kinds of abusive scenarios with shell corporations created just to get votes, but sounds like the judge thought that these imaginary scenarios were not demonstrated to be actually happening. Courts typically rule only on demonstrated harm or other actual evidence, not "what if" conjectures.

  • DarkNova6 1 hour ago
    Corporate representation in UNO when?
  • recursivecaveat 1 hour ago
    > Karsnitz dismissed the lawsuit from Delaware’s Superior Court, citing “the principle of one person/entity/one vote.”

    What? The principle is "one person, one vote". I'd like to cite the principle of "one person, one vote, unless they're named recursivecaveat in which case 1 trillion votes" to assert my rights in the Fenwick island elections please.

  • bluefirebrand 1 hour ago
    I hope we can agree that allowing corporations to vote in any kind of political process is taking corporate personhood too far
    • rayiner 1 hour ago
      In this case, I don’t agree. The municipal charter here allows non-residents who own property on the island to vote. Why should it be different whether I own the property in my own name, or I own a corporation that in turn owns the property?

      To the extent there’s a problem here, the problem is the municipal charter essentially allows “property to vote.” That seems to be the real problem.

      • soco 50 minutes ago
        Then it wouldn't be a big deal to change that charter, right? Right? Right? Of course, if the actual locals are bothered by it - not us on the internet with exactly zero dogs in that fight.
        • rayiner 14 minutes ago
          The charter in question has allowed non-resident voting since the 1950s.
    • klaff 55 minutes ago
      I absolutely agree. They shouldn't be able to vote and they shouldn't have free speech rights. Corporations are a legal structure - a way to allow risk sharing to encourage investment that would otherwise maybe not happen if one had to risk everything in order to invest. But when we choose to allow that, and it is a choice, we should not give those entities the rights of people. It is simply absurd.
  • Hizonner 36 minutes ago
    I think I'm just gonna repost this recent link here... https://www.antipope.org/charlie/blog-static/fiction/acceler...
  • jauntywundrkind 1 hour ago
    You can register a corporation in Delaware for $109.

    The Town of Fenwick Island mentioned here has a population of 400.

    It's high noon for this matter, & about time to start repealing corporate rights. The undoing of this travesty should be a federal project. But hopefully Delaware can course correct themselves, and reverse the mega-threat to humanity they have been unleashing. At least states like Hawaii are heading in the opposite direction already, saying corporations are not people and denying them human speech rights. Potentially immortal easy to spawn companies should indeed not be granted full human rights. https://inequality.org/article/hawaii-targets-citizens-unite...

    • chuckadams 59 minutes ago
      The state of Hawaii was the most recent to be expropriated from its natives at the behest of corporate landlords, so they're probably a bit raw about it.
    • mindslight 1 hour ago
      Doing this at scale might be even cheaper than that. A Delaware Series LLC is $300/year, which then lets you make an unlimited number of independent legal entities. You don't even have to file paperwork with the state to create these new entities, just your own internal bookkeeping. Although presumably you'd have to file paperwork to transfer them a tiny sliver of real estate ($$), register to vote (free), and to actually vote (free).
      • NDlurker 49 minutes ago
        So I buy one parcel of land and then split off ownership to each of the 400 entities I created? Crazy
        • king_geedorah 28 minutes ago
          The original complaint cites no minimum land ownership requirement and the judgement does not seem to make specific disagreement with this fact as best I can tell, so that is my understanding as well.
      • chuckadams 1 hour ago
        I have to imagine that's an OpenClaw workflow by now.
  • condis 1 hour ago
    So can I just create a boatload of shell companies to vote for me?
    • 8cvor6j844qw_d6 1 hour ago
      Same question. So someone rich can spin up shell companies to steer elections hmm...

      Or several companies with the same interest in mind voted for something good for the companies, bad for individuals.

    • SoftTalker 33 minutes ago
      Do you care enough about the local governance of the Town of Fenwick Island to do this?
  • black6 1 hour ago
    If I own property in multiple municipalities/states, then I should be able to vote in all of them on local issues.
    • samwiseg 1 hour ago
      Absolutely not. If you don’t live there, then your vote shouldn’t matter as much as someone who does live there.
    • postflopclarity 1 hour ago
      that's a different legal question than the one here.
      • toast0 54 minutes ago
        This case is specifically about allowing voting for non-resident property owners when the ownership is held by a corporation rather than a natural person.
    • yesfitz 1 hour ago
      Why?
  • tiahura 58 minutes ago
    all corporations ultimately resolve down to individuals. either the shareholders or the board.
    • ceejayoz 4 minutes ago
      The point of an limited liability company is to limit that aspect substantially.
  • ryeights 1 hour ago
    This reads like satire from a Slate commentary piece on Citizens United. I suppose we’re just waiting around until the majority of corporations in the US are formed and operated by AI agents. And then…
  • josefritzishere 59 minutes ago
    "All animals are equal, but some animals are more equal than others".
  • booleanbetrayal 56 minutes ago
    [dead]
  • bitbytebane 1 hour ago
    [dead]
  • yieldcrv 1 hour ago
    > Visions of faceless large corporations or even HAL controlling a small town are frightening and the stuff of science fiction

    The City of London and Hong Kong have half of the voting power held by corporations and City of London is older than any US state, and colony. And so are some of the guilds

    Universal suffrage at all, and exclusive to natural persons, is more science fiction than corporations voting

    • tialaramex 53 minutes ago
      One of the interesting patterns for suffrage has been that it doesn't matter.

      Before Great Reform the vast majority of British people can't vote, after it all the moderately wealthy men can now vote. So did that result in massive political change, reflecting the newly enfranchised people's preferences? Nope. Subsequent tinkering expanded suffrage slightly but again, the results were the same. Then last century they did several things in quick succession (often portrayed as "universal suffrage" but as we'll see that's just what people always call any expansion, the "universe" of one's imagination grows). First they gave all men (including poor men), and older women suffrage. This made no appreciable difference except that, having now entertained the idea that women should vote (it wasn't technically illegal before Great Reform it just didn't happen enough to matter) the women realised hey, maybe women should be politicians and that did cause some modest changes. Then they equalised voting age for men and women, so now a 21 year old can vote regardless of gender.

      Later in that century the UK gave almost† all 18 year olds the vote too, and again the worry was maybe a 19 year old will vote differently? Nope. More or less the same results.

      So, maybe giving corporations the vote changes nothing, but I'm less hopeful than I was for giving Sarah, an 18 year living with her parents on benefits the vote knowing that for some insane reason she's not actually much more likely to vote against a "Fuck Sarah, take her money away" policy than everybody else is because apparently all people are morons so giving more of them suffrage changed nothing. I think corporations are psychopaths not morons...

      † Although most crooks in the UK aren't magically stopped from voting, they can't vote in prison and in practice it's very hard to vote from prison even if it would be legal for you because you're held there prior to a trial or whatever. So that's not ideal. It is controversial whether specific electoral interference crimes should result in withdrawal of suffrage, as is the practice today or whether that's just petty and ultimately futile.

      [[ I still support universal suffrage, but because now it's everybody's fault. You're not going to get a good government, but now the terrible government is your fault too. ]]

    • josefritzishere 20 minutes ago
      This seems disingenuous. The City of London and Hong Kong being "corporations". They're still nations. It's like Pennsylvania arguing that it's a Commonwealth and not a state. When people do not have equal representation under the law the people are not free. We call it authoritarianism.
  • bitwize 1 hour ago
    Republicans have just lost the right to whinge about illegal immigrants being able to vote. Even if it were true... let them vote. Their say in what happens to them in this country matters more than that of any corporation.
    • rayiner 1 hour ago
      What do “Republicans” have to do with this? This is Delaware. Everyone in this story is a Democrat.
      • ceejayoz 1 hour ago
        41% of Delaware voters picked Trump in 2024.

        Per https://commons.wikimedia.org/wiki/File:2024_United_States_P..., Fenwick Island itself went red (the absolute bottom-right-most spot).

        • rayiner 56 minutes ago
          Someone does something you don’t like in a state that overwhelmingly voted for Harris, where Democrats control every level of government and appoint all the judges. But somehow it’s still Trump’s fault lol.
          • ceejayoz 47 minutes ago
            You asserted "Everyone in this story is a Democrat".

            That seems unlikely, given the town is a red precinct.

            No one said anything about Trump's fault, just that there are clearly people and entire regions in Delaware who vote Republican. Look how red that map is - plenty of Republicans in local government.

      • mindslight 1 hour ago
        It's a low effort partisan comment, but "Republicans" generally represent the naked corporate agenda (bad cop) while the "Democrats" at least try to hide it and throw the People some concessions (good cop).
        • rayiner 49 minutes ago
          Except we’re talking about Delaware, which is totally controlled by Democrats who also cater to corporations.
          • mindslight 40 minutes ago
            Don't play coy. We are obviously talking about the overall national political landscape, extrapolating from this one development to its part in a larger trend. The specific politics of Delaware (which team is the incumbent and how the state is openly corporate friendly) don't change that.
            • rayiner 12 minutes ago
              My point is that the example you’ve chosen to highlight is a major counter example that undermines your broader narrative.