Business Court Overview and Key Information

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Business courts are specialized tribunals that handle complex commercial cases, often with a focus on speed and efficiency. They typically have a streamlined process to resolve disputes quickly.

Business courts usually have a dedicated team of judges and experts who are experienced in commercial law. This team is equipped to handle complex cases with multiple parties and technical issues.

Business courts often have a set of rules and procedures that are tailored to commercial cases, which can help to speed up the process and reduce costs. These rules may include specific requirements for pleadings, discovery, and trial procedures.

Business courts can be a good option for businesses that need to resolve complex commercial disputes quickly and efficiently.

Jurisdiction and Structure

Business courts have varying jurisdictional models to determine which cases they can hear. These models generally fall into two categories: courts that require cases to have an additional complexity component and courts that establish jurisdictional parameters through a defined list of case types and a specified minimum amount of damages in controversy.

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In New York, the trial level Supreme Court Commercial Division uses a case type and jurisdictional amount in controversy model, giving jurisdiction over 12 listed business and commercial case categories, with monetary thresholds ranging from $50,000 to $500,000 in Manhattan.

Some business courts have mixed models, combining mandatory case type categories with discretionary types that require an element of complexity. For instance, the Maryland Circuit Court's Business and Technology Case Management Program includes certain "presumptive" mandatory case types, while others require a judge's subjective determination of complexity.

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Jurisdictional Models

Business courts in the United States have various jurisdictional models, but most are limited to disputes related to business or commercial matters.

New York's trial level Supreme Court Commercial Division follows a case type and jurisdictional amount in controversy model, giving jurisdiction over 12 listed business and commercial case categories while setting out monetary thresholds ranging from $50,000 in some counties to $500,000 in Manhattan.

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In Massachusetts, the Superior Court's Business Litigation Session (BLS) includes a jurisdictional list of case types, but focuses on the complexity of the case and the need for substantial case management rather than monetary thresholds.

North Carolina's Business Court has a similar mixed model that makes jurisdiction mandatory if the listed commercial case type is over $5,000,000, but discretionary if under.

The Maryland Circuit Court's Business and Technology Case Management Program includes certain "presumptive" mandatory case types, while others categories require a judge to more subjectively determine if they are complex enough to include on the docket.

Business courts in the United States have various jurisdictional models, but most are limited to disputes related to business or commercial matters.

The jurisdictional models of business courts can be categorized into two main types: those that require an additional complexity component, and those that establish jurisdictional parameters through a defined list of case types combined with a specified minimum amount of damages in controversy.

Judges in the US Since 1993

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The US has had a total of 115 federal judges appointed since 1993, with the majority of them serving on the Court of Appeals.

In 1993, President Bill Clinton appointed 15 federal judges, setting the stage for a significant increase in judicial appointments over the next few years.

The number of federal judges appointed during the Clinton administration was a notable departure from previous years, with a total of 62 judges appointed during his two terms in office.

President George W. Bush appointed 32 federal judges during his two terms, bringing the total number of federal judges appointed since 1993 to 109.

President Barack Obama's judicial appointments were also significant, with a total of 55 federal judges appointed during his two terms.

The total number of federal judges appointed since 1993 is now 115, with the latest appointments made by President Donald Trump and President Joe Biden.

For more insights, see: Appointments Odoo

History and Development

The business court system has a long history dating back to the 19th century.

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In the United States, the first business court was established in New York in 1847, with the goal of providing a specialized forum for commercial disputes.

The business court system was designed to handle complex business cases more efficiently than traditional courts.

Business courts have evolved over time to keep pace with the changing needs of the business community.

They now often have specialized judges and staff who are familiar with business law and procedures.

In some states, business courts have been established as separate divisions within the existing court system.

This allows for more efficient handling of business cases and reduces the backlog of cases in traditional courts.

International and Technology

The International Commercial Court in Singapore has a Technology, Infrastructure, and Construction List, which shows that some courts are taking a proactive approach to handling technology disputes.

In Ireland, the Commercial Court within the High Court has an Intellectual Property and Technology division, further emphasizing the importance of technology in business litigation.

Some jurisdictions, such as North Carolina's Business Court, are even using cutting-edge technologies in handling business litigation, becoming so-called "cyber courts".

Technology Disputes

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Technology disputes are being handled by specialized courts around the world, with some states in the United States leading the way.

In Maryland, a Business and Technology Case Management Program was established in 2003 through legislative effort and court rule. This program shows how technology disputes can be addressed within a business court.

Delaware expanded the Court of Chancery's jurisdiction to include technology disputes in May 2003. This move highlights the growing need for courts to handle complex technology-related cases.

West Virginia's Business Court Division Rules include technology issues, and Tennessee's Business Court Docket encompasses technology and biotechnology licensing. These examples demonstrate how technology disputes are becoming a significant part of business court jurisdictions.

North Carolina's Business Court jurisdiction includes computer software, information technology and systems, data and data system security, biotechnology and bioscience technology. This broad scope of jurisdiction is helping to establish North Carolina as a hub for technology disputes.

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Michigan's business court jurisdiction includes disputes involving information technology, software, or website development, maintenance, or hosting. This shows how technology disputes are being addressed in business courts across the country.

Wyoming Chancery Court Rules provide jurisdiction over disputes concerning registered digital assets. This highlights the growing importance of digital assets in business and technology disputes.

New York's Commercial Division Rule was amended in 2024 to expressly include technology transactions and/or commercial disputes involving or arising out of technology. This move is intended to make clear that New York is experienced in handling technology disputes.

Some international courts are also addressing technology disputes, such as Singapore's International Commercial Court, which includes a Technology, Infrastructure, and Construction List.

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International

Did you know that the internet is widely available in many parts of the world, with over 50% of the global population having access to it? This has bridged the gap between nations and cultures.

The World Wide Web has made it easier for people to communicate across borders, with over 4.6 billion internet users worldwide. This has enabled global connectivity and collaboration.

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In fact, the internet has become an essential tool for international business, with many companies using it to reach customers and partners worldwide. The global e-commerce market is projected to reach $6.5 trillion by 2023.

Globalization has also led to the growth of international education, with many students choosing to study abroad to gain a global perspective. According to the Institute of International Education, over 5 million students studied abroad in 2019.

The internet has also enabled international travel, with online booking platforms making it easier for people to plan and book trips worldwide. In 2019, over 1.4 billion international tourist arrivals were recorded worldwide.

Dispute Resolution

Dispute Resolution is a key aspect of business courts, and there are various methods used to resolve disputes. Business courts often use Alternative Dispute Resolution (ADR) methods such as mediation, arbitration, and neutral evaluation.

Some business courts, like New York's Commercial Division, allow for court-appointed mediators and neutral evaluators. In fact, New York Commercial Division Rule 3 specifically mentions this. Other courts, like Philadelphia's Commerce Case Management Program, use Judges Pro Tempore in mandated settlement conferences and discretionary referrals to private mediation.

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Business courts also use special masters or referees to expedite decision-making in some cases. For example, North Carolina, Kentucky, New York, Indiana, Orlando, Ft. Lauderdale, and Georgia all use special masters or referees in certain situations.

Here are some specific examples of business courts that use ADR and special masters or referees:

These are just a few examples of how business courts use dispute resolution methods to resolve cases efficiently and effectively.

Appellate

Appellate courts have a specialized role in dispute resolution, particularly in business and commercial cases.

In 2023, Texas passed a law creating the Fifteenth Court of Appeals, the first operational specialized appellate level business court in the United States.

This court became operational on September 1, 2024, and its constitutionality was upheld by the Texas Supreme Court on August 23, 2024.

The United States Court of Appeals for the Seventh Circuit has been described as a commercial court, not by design, but due to its actual case work.

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The New York Court of Appeals was once the nation's premier commercial court, according to retired Seventh Circuit Judge Richard Posner.

The United States Court of Appeals for the Second Circuit was also described as the country's leading commercial court during the 1940s and 1950s.

India's Commercial Courts law includes provisions for specialized commercial appellate divisions.

The Netherlands has a Commercial Court of Appeals and an Enterprise Chamber of the Amsterdam Court of Appeals.

Singapore's International Commercial Court is designated to hear appeals from Bahrain's International Commercial Court.

Excluded Cases

In the Business Court, not all cases are created equal. Personal-injury actions, including wrongful death and medical malpractice, are excluded from the Business Court.

These types of cases are typically handled by other divisions of the Circuit Court. Matters within jurisdiction of the Family Division of the Circuit Court are also excluded.

Proceedings under the Probate Code of 1939 and the Estates and Protected Individuals Code are not assigned to the Business Court either. Criminal matters, condemnation matters, and appeals from lower courts or administrative agencies are also excluded.

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Proceedings to enforce judgments of any kind are not part of the Business Court's jurisdiction. Landlord-tenant matters involving only residential property and land contract or mortgage foreclosure matters involving residential property are also excluded.

Motor-vehicle insurance-coverage cases under the Insurance Code of 1959, except where 2 or more parties to the action are insurers, are not assigned to the Business Court. Insurance-coverage disputes in which an insured is an individual consumer are also excluded.

Employment-discrimination cases, civil-rights cases, including claims brought under specific acts, and wrongful-discharge cases, except actions involving corporate officers or directors, are not handled by the Business Court.

Here's a list of excluded cases:

  1. Personal-injury actions
  2. Product-liability actions in which any claimant is an individual
  3. Matters within jurisdiction of the Family Division of the Circuit Court
  4. Proceedings under the Probate Code of 1939
  5. Proceedings under the Estates and Protected Individuals Code
  6. Criminal matters
  7. Condemnation matters
  8. Appeals from lower courts or administrative agencies
  9. Proceedings to enforce judgments of any kind
  10. Landlord-tenant matters involving only residential property
  11. Land contract or mortgage foreclosure matters involving residential property
  12. Motor-vehicle insurance-coverage cases under the Insurance Code of 1959
  13. Insurance-coverage disputes in which an insured is an individual consumer
  14. Employment-discrimination cases
  15. Civil-rights cases
  16. Wrongful-discharge cases (except actions involving corporate officers or directors)
  17. Worker's-compensations claims

Court

The Business Court handles complex business cases, such as antitrust suits, intellectual property cases, and unfair competition cases. This specialized court aims to handle business litigation matters in an effective and efficient manner.

The Business Court has standardized procedures, which leads to a higher degree of consistency of rulings on recurring issues. This is a major benefit of having a dedicated business court.

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Businesses are drawn to areas where courts understand the complexity of business litigation. This is why the community has given tremendous support to the concept of a Business Court.

The Business Court is not limited to one county, it has expanded to Osceola County, becoming the 5th County in Florida to have a formal Business Court. Jury Trials will be held at the Osceola County Historical Courthouse in Kissimmee.

A Judge from the Circuit Civil division is assigned to handle cases that are suitable for adjudication in Business Court. This ensures that cases will move more effectively through the system.

To access the Business Court, you can visit the Webex Video Conference Link: https://ninthcircuit.webex.com/join/BusinessCourt. You can also call (800) 297-5377, available Monday-Friday, 8 a.m. to 8 p.m.

Some of the types of cases considered for transfer to the Business Court include:

  • Jury and nonjury civil actions, including but not limited to appeals under Rules 80B and 80C, business dissolutions, class actions, and family matters cases that require distribution of business assets that do not involve children.
  • New filings and cases currently pending in the Superior and District Courts.

Resources

If you're navigating the business court system, you'll want to have access to the right resources.

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The Business Court User Guide is a valuable resource that can help you understand the process and procedures of the business court.

For opinions and decisions, you can refer to the Opinions section.

If you need to request case assignment to the Business Court, you can download the Request Case Assignment to Business Court document in PDF format.

To exclude a case from the Business Court, you can download the Order Excluding Case from Business Court document in PDF format.

Here are some key resources to keep in mind:

  • User Guide
  • Opinions
  • Request Case Assignment to Business Court (PDF)
  • Order Excluding Case from Business Court (PDF)

Transfer and Alternative

If you're considering a transfer for your business, there are specific types of cases that can be considered.

Jury and nonjury civil actions, including appeals under Rules 80B and 80C, business dissolutions, class actions, and family matters cases that require distribution of business assets without involving children, are all eligible for transfer.

You can also transfer new filings and cases currently pending in the Superior and District Courts.

For more information on the transfer process, you can call (800) 297-5377, available Monday-Friday, 8 a.m. to 8 p.m.

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Alternative Dispute Resolution

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Alternative Dispute Resolution is a key component in resolving business disputes. Business courts and alternative dispute resolution (ADR) have a significant relationship, with many courts using ADR as a complementary adjunct to the litigation process.

In the US, courts like New York's Commercial Division and Florida's Ninth Judicial Circuit Business Court require mandatory ADR. The North Carolina Business Court Rules also address mandatory mediation. Delaware's Court of Chancery uses magistrates, who can potentially be final decision makers.

International examples of ADR in business courts include Ireland's Commercial List, which gives judges power to adjourn proceedings for mediation or arbitration, and the ADGM Courts' court-annexed mediation. The Commercial Court of England and Wales' docket involves a substantial part of arbitration appeals.

Business courts often encourage the use of special masters or referees in expediting decision making. For example, the New York Commercial Division and the Metro Atlanta Business Case Division can hear disputes concerning international arbitration proceedings.

Cases are generally sent to ADR at a time when the court believes the parties have sufficient information to make settlement discussions meaningful.

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Objecting to BCD Transfer

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If you're objecting to a transfer to the BCD, you'll need to file a written objection within 14 days of the transferring court's application. This objection should be no more than two pages in length and clearly state the specific reasons for your objection.

To avoid waiving your objection, make sure to file it with the transferring court on time. If the application is filed with the initial complaint, your written objection must be filed no later than your answer or response to the complaint, or the deadline for filing that answer, whichever comes first.

Decisions about transfer are final and not subject to review or appeal, so it's essential to get it right the first time.

Private Entities

Private entities have played a significant role in implementing and refining business courts in the United States. They have carried out studies and reports to help courts improve their operations.

The Institute for the Advancement of the American Legal System, for example, conducted studies and reports for Colorado's pilot business courts, known as the Civil Access Pilot Project. This project aimed to improve the efficiency of business courts.

A group of professionals engaged in a business meeting inside a modern office boardroom.
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Private consulting firms have also been involved in creating business courts. A firm conducted a study to create a business court in Atlanta, specifically for the Fulton County Superior Court. This study helped inform the development of the business court.

The National Center for State Courts (NCSC) has worked with courts to develop curricula and guides for creating business courts. They collaborated with the Tennessee Administrative Office of the Courts to develop a curriculum and faculty guide for creating business courts.

Key Information

Business courts are specialized courts that handle commercial disputes and business-related cases. They are designed to provide a more efficient and effective way to resolve business disputes.

In the United States, business courts are often established by state law and are typically composed of experienced judges and lawyers who are knowledgeable about business law and procedures. The judges in these courts are often chosen for their expertise in business law and their ability to handle complex commercial cases.

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Business courts can provide a more streamlined and efficient way to resolve business disputes, often with faster trial dates and more flexible rules of evidence. This can be especially helpful for businesses that need to resolve disputes quickly in order to stay competitive.

The rules of evidence in business courts are often more relaxed than in regular courts, which can help to speed up the trial process. This means that businesses may be able to present more evidence and arguments in a shorter amount of time.

Business courts can also provide a more private and confidential way to resolve disputes, which can be especially helpful for businesses that are sensitive about their financial or other information.

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Frequently Asked Questions

Which states have business courts?

Business courts exist in 23 states, including Arizona, Delaware, and Florida, providing specialized dispute resolution for business-related cases. To learn more about these courts and their jurisdictions, click here.

What is NC Business Court?

The North Carolina Business Court is a specialized court that handles complex business and commercial law cases. It's a division of the superior court system, designed to efficiently resolve significant business disputes.

Ramiro Senger

Lead Writer

Ramiro Senger is a seasoned writer with a passion for delivering informative and engaging content to readers. With a keen interest in the world of finance, he has established himself as a trusted voice in the realm of mortgage loans and related topics. Ramiro's expertise spans a range of article categories, including mortgage loans and bad credit mortgage options.

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