Judge Rules Delaware Beach Town Can Continue Allowing Corporations to Vote in Municipal Elections

A Delaware judge has ruled that a small beach town may continue allowing corporations and other legal entities to vote in municipal elections, rejecting a constitutional challenge brought by the American Civil Liberties Union of Delaware over what the group described as “non-human artificial entities” participating in local government.

Delaware Superior Court Judge Craig Karsnitz ruled Tuesday that Fenwick Island’s voting system does not violate the state constitution’s requirement that elections remain “free and equal,” according to the court’s decision. The ruling allows corporations, trusts, partnerships, and limited liability companies that own property in the town to continue casting votes in local elections under the municipality’s charter.

The lawsuit focused on Fenwick Island, a small coastal town near the Maryland border that has allowed nonresident property owners to vote since its incorporation in 1953. Delaware lawmakers later amended the town’s charter in 2008 to expressly permit voting by certain legal entities formed in the state, including corporations and trusts that own property within the municipality.

The ACLU of Delaware argued the system improperly diluted the votes of human residents and violated the elections clause of the Delaware Constitution. Court filings state that artificial entities make up roughly 12% of registered voters in the town. The organization sought a court order blocking Fenwick Island from counting votes cast by corporations and other non-human entities in future elections.

Judge Karsnitz rejected those arguments, writing that Delaware courts historically interpreted the state constitution’s “free and equal” elections language as protecting elections from fraud or discriminatory practices. The ruling noted there were no allegations involving racial discrimination or unequal treatment among eligible voters.

Karsnitz also addressed concerns raised during the lawsuit about corporations exercising political influence in local government. In the opinion, the judge wrote that fears of “faceless large corporations” controlling a town may sound alarming but concluded the challengers failed to show the policy violated constitutional voting protections.

Fenwick Island officials have defended the system by arguing that property owners who pay taxes and comply with local ordinances should have some voice in municipal government, even if they do not permanently reside in the town. Mayor Natalie Magdeburger previously told Reuters that the town believes property ownership creates a legitimate connection to local governance.

Corporations are often treated as legal entities under American law, allowing them to own property, enter into contracts, file lawsuits, and be sued in court. Fenwick Island’s charter extends limited local voting rights to some of those entities when they own taxable property in the town, which became the center of the constitutional dispute.

Some local governments have historically allowed certain nonresident property owners to vote in limited municipal elections, particularly in smaller communities where property taxes help fund local operations.

The lawsuit also centered on the constitutional principle commonly known as “one person, one vote,” which generally requires election systems to give voters equal political weight. The ACLU of Delaware argued the town’s system improperly expanded voting power beyond individual residents by allowing corporations and other legal entities to participate in elections.

Judge Karsnitz concluded the challengers failed to show Fenwick Island’s charter violated that principle under Delaware law. The case drew attention beyond Fenwick Island because Delaware remains the legal home to most publicly traded U.S. companies due to its business-friendly corporate laws and specialized court system.

Several other Delaware towns reportedly allow corporations and other legal entities to vote in local elections if they own property within the municipality.