Business courts

Business Courts, sometimes referred to as Commercial Courts, are trial courts that hear business disputes primarily or exclusively. The modern creation of specialized Business Courts in the United States began in the early 1990s,[1] and has expanded greatly in the last twenty-five years.[2] Business courts (or more accurately business programs or divisions within existing trial level courts) are operating in New York City and 9 other jurisdictions throughout New York State as the New York Supreme Court Commercial Division,[3] Chicago, North Carolina, New Jersey, Philadelphia and Pittsburgh, Pennsylvania, 3:13:55 PM Reno and Las Vegas, Nevada, Massachusetts, Rhode Island, Maryland, Miami, Ft. Lauderdale, and Tampa, Florida, Michigan,[4] Cleveland and Toledo, Ohio, Iowa, Maine, New Hampshire, Atlanta and Gwinnett County, Georgia, Delaware's Superior Court and Court of Chancery, Nashville, Tennessee,[5] Waukesha County and Green Bay, Wisconsin, Indiana,[6] Arizona, Kentucky[7] and South Carolina.[8][9] This map shows states having business courts either statewide, in multiple counties or cities, or within a single major city or county, which is accurate through May 2019. In February 2019, through legislation, Wyoming created the Court of Chancery of the State of Wyoming.[10] In May 2019, Georgia's Governor signed a statute into law creating a new statewide business court in Georgia.[11] In New York, Chicago, Philadelphia, Massachusetts,[12] North Carolina, South Carolina and New Jersey, among other states with business courts, the original programs have expanded by adding judges and/or by expanding into additional cities and counties.[13][14][15]

Delaware's Court of Chancery, the pre-eminent court addressing intra-business disputes, has functioned as a business court of limited jurisdiction for a century.[16] However, its traditional equity jurisdiction has evolved and expanded since 2003 to include technology disputes (10 Del. C. § 346), some purely monetary commercial disputes (10 Del. C. § 347), and to expand its role in the alternative dispute resolution of business and commercial disputes. This includes the use of mediation (10 Del. C. § 347), Masters in Chancery to adjudicate matters (10 Del. C. § 350), and agreements to make decisions non-appealable (10 Del. C. § 351).[17]

The significant relationship between business courts and Alternative Dispute Resolution, such as mediation, neutral valuation, and arbitration, is well recognized.[18][19]

Business and Commercial Courts exist internationally as well, including, for example, England and Wales,[20] Toronto[21] and Quebec,[22] Canada, Ireland, Scotland,[23] Denmark, Hong Kong, Belgium, Bermuda, New South Wales and Victoria Australia, Northern Ireland, Qatar, Dubai,[24] Spain, France, Switzerland, Tanzania, Rwanda, Lesotho, the British Virgin Islands, and Malaysia.[25][26] New English language commercial courts have been created in Paris, Frankfurt, and the Netherlands.[27][28][29]

The American College of Business Court Judges was established in 2005.[30]

Business Court Jurisdiction, Technology Disputes & Cyber Courts, and Complex Litigation Courts

Business Courts are trial courts that hear business disputes primarily or exclusively. In the United States, these courts have been established in approximately twenty-five states. In some cases, a state legislature may choose to create a business court by statute. In other cases, business courts have been established by judicial rule or order, at the Supreme Court or trial court level. In virtually all cases, the jurisdiction of the court to hear certain cases is limited to disputes that are in some way related to "business" disputes, and generally fall into two categories: (1) those courts which require that cases have an additional complexity component; and (2) those courts which establish jurisdictional parameters (i) through a defined list of case types (ii) combined with a specified minimum amount of damages in controversy, irrespective of complexity. There are courts with mixed models as well.[31]

In New York, for example, the Commercial Division may hear cases (1) alleging breach of contract, (2) arising under the state's business corporation law, (3) arising under the state's partnership law, (4) relating to commercial loans, negotiable instruments, letters of credit, and bank transactions, or (5) involving business torts. The Commercial Division may not, by comparison, hear cases involving (1) landlord/tenant disputes, (2) commercial foreclosures, (3) products liability claims, or (4) claims alleging discrimination except when part of or under the terms of a contract.[32]

Some states have established specialized courts that include technology disputes as part of their express jurisdiction.[33] Through legislative effort and court rule, Maryland established a Business and Technology Case Management Program. In May 2003, Delaware expanded the Court of Chancery's jurisdiction to include technology disputes, and the mediation of other kinds of business disputes (10 Del. C. §§ 346, 347).[34] West Virginia's Business Court Division Rule 24.09 expressly includes technology issues.[35] The Davidson County, Tennessee Business Court Docket expressly encompasses technology and biotechnology licensing.[36] North Carolina's Business Court jurisdiction expressly includes computer software, information technology and systems, data and data system security, biotechnology and bioscience technology.[37] The High Court of Justice in England includes a Technology and Construction Court.

California, Connecticut, Phoenix, Arizona,[38] Oregon, and Minnesota have created specialized courts or tracks for complex litigation that would include some business disputes within a broader jurisdiction of complex matters. Arizona also has a specialized commercial court in Phoenix.[39] Other states are in various stages of moving toward or away from business or complex courts, with Colorado having conducted extensive studies nearly two decades ago into the merits and potential parameters of creating a business court on a broad basis, which was not pursued, and Orlando, Florida having to move resources away from its Complex Business Litigation program into its family court,[40] though this program was restored in October 2019,[41] while New Jersey expanded to a statewide business court track in 2015, after having only two counties with specialized commercial courts for 20 years,[42] and South Carolina's Business Court went from a regional pilot program and is now a permanent statewide program.[43]

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References
  1. Mitchell L. Bach & Lee Applebaum, A History of the Creation and Jurisdiction of Business Courts in the Last Decade Archived September 4, 2012, at the Wayback Machine, 60 Business Lawyer 147 (2004).
  2. Lee Applebaum, "The Steady Growth of Business Courts, National Center for State Courts, Future Trends in State Courts (2011).
  3. "Commercial Division - NY Supreme Court - Home". www.nycourts.gov. Retrieved 2019-02-28.
  4. "Michigan Business Courts: Local and National Lessons – Business Courts Blog". Retrieved 2019-03-03.
  5. "Tennessee's Business Court as a Model for Creating New Business Courts – Business Courts Blog". Retrieved 2019-03-03.
  6. "Indiana's Supreme Court Makes Commercial Courts Permanent, and Establishes a Standing Commercial Court Committee – Business Courts Blog". Retrieved 2019-05-29.
  7. "Business Court Docket in Jefferson County, Kentucky".
  8. Lee Applebaum, "The Steady Growth of Business Courts, National Center for State Courts, Future Trends in State Courts (2011).
  9. ABA Section of Business Law's Committee on Business and Corporate Litigation, Chapter 5, Annual Developments in Business and Corporate Litigation (2004 - 2018) (listing yearly developments in business courts).
  10. "Wyoming Judicial Branch, Chancery Court".
  11. "Georgia's Governor Signs Business Court Legislation Into Law – Business Courts Blog". Retrieved 2019-05-29.
  12. "Boston Business Litigation Session's Evolution from Local to Regional to Statewide Business Court – Business Courts Blog". Retrieved 2019-03-17.
  13. Mitchell L. Bach & Lee Applebaum, A History of the Creation and Jurisdiction of Business Courts in the Last Decade, 60 Business Lawyer 147 (2004).
  14. The ABA Section of Business Law's Committee on Business and Corporate Litigation annually publishes Recent Developments in Business and Corporate Litigation. Since 2004, this book has included a chapter on business courts, which describes changes and developments in business courts since that time to the present.
  15. "Administrative Order 2017-02-08-02, In Re: Amended Business Court Pilot Program, Supreme Court of South Carolina". Retrieved 2019-03-04.
  16. "New Jersey Complex Business Litigation Program's New Rules, Guidelines, and Model Forms – Business Courts Blog". Retrieved 2019-03-03.
  17. Title 10, Delaware Code, Courts and Judicial Procedures
  18. Tennille, Bejamin; Applebaum, Lee; Nees, Anne (2012-02-23). "Getting to Yes in Specialized Courts: The Unique Role of ADR in Business Court Cases". Pepperdine Dispute Resolution Law Journal. 11 (1). ISSN 1536-3090.
  19. Christopher R. Drahozal, Business Courts and the Future of Arbitration, 10 Cardozo Journal of Conflict Resolution 491 (2009)
  20. "The Business and Property Courts - GOV.UK". www.gov.uk. Retrieved 2019-02-28.
  21. "Commercial List | Superior Court of Justice". Retrieved 2019-03-03.
  22. "Superior Court of Québec -- Commercial Division – General Rules". www.tribunaux.qc.ca. Retrieved 2019-03-03.
  23. "Commercial Actions". www.scotcourts.gov.uk. Retrieved 2019-03-03.
  24. Judiciary of England and Wales, Judicial Office New Release, UK-UAE Trade ties strengthened through memorandum between Commercial Courts (24/01/2013)
  25. Ralph Peeples and Hanna Nyheim,"Beyond the Border: An International Perspective on Business Courts, Business Law Today (March/April 2008).
  26. Lee Applebaum and Cory Manning, "Specialized Business and Commercial Courts Around the Globe: A Summary World View, American Bar Association (Spring 2009).
  27. June 5, Giesela Ruehl on; 2018 (2018-06-05). "Doors open for First Hearing of International Chamber at Paris Court of Appeal". Conflict of Laws. Retrieved 2019-02-28.CS1 maint: numeric names: authors list (link)
  28. "Chamber for International Commercial Disputes". Ordentliche Gerichtsbarkeit Hessen (in German). 2018-08-01. Retrieved 2019-02-28.
  29. "Netherlands Commercial Court". Netherlands Commercial Court. Retrieved 2019-02-28.
  30. American College of Business Court Judges, https://masonlec.org/divisions/mason-judicial-education-program/american-college-business-court-judges/
  32. Section 202.70, Rules of the Commercial Division of the Supreme Court of New York
  33. Jacob A. Sommer, Business Litigation and Cyberspace: Will Cyber Courts Prove and Effective Tool for Luring High-Tech Business Into Forum States, 56 Vanderbilt Law Review 561 (2003)
  34. Title 10, Delaware Code, Courts and Judicial Procedures
  35. "Trial Court Rules | Chapter 2: Civil Matters, Rules 20-29 - West Virginia Judiciary". www.courtswv.gov. Retrieved 2020-01-25.
  36. "Tennessee Business Court Docket Guidelines Phase 2" (PDF).
  37. "North Carolina Business Court Rules (2019)" (PDF).
  38. Mitchell L. Bach & Lee Applebaum, A History of the Creation and Jurisdiction of Business Courts in the Last Decade Archived September 4, 2012, at the Wayback Machine, 60 Business Lawyer 147 (2004).
  39. "The Judicial Branch of Arizona in Maricopa County -". superiorcourt.maricopa.gov. Retrieved 2019-02-28.
  40. Lotan, Gal Tziperman. "Orange-Osceola courts will close business division to bolster family court". OrlandoSentinel.com. Retrieved 2019-02-28.
  41. "Florida's Ninth Judicial Circuit Business Court to Reopen on October 21, 2019 – Business Courts Blog". Retrieved 2020-01-25.
  42. "New Jersey Complex Business Litigation Program's New Rules, Guidelines, and Model Forms – Business Courts Blog". Retrieved 2019-02-28.
  43. "South Carolina's "Business Court Pilot Program" becomes the "Business Court Program" – Business Courts Blog". Retrieved 2019-02-28.
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