Overview of State Business, Technology and Complex
Courts/Programs
- Arizona
In 2002, Arizona established the Complex
Civil Litigation Pilot Program in Maricopa County (Phoenix).
Arizona's Pilot Program hears cases based upon their complexity,
and includes not only commercial and business cases, but cases
such as mass and toxic torts. In 2006, and administrative
court order extended the prilot program until December 31,
2008.
The Pilot Program's committee recommended
that the program continue but that statewise expansion be deferred
becuase the committee did not find it practical or necessary
at this time.
- California
In 2000, California created the Complex
Civil Litigation Pilot Program in which six of the largest
Superior Courts established separate departments for complex
civil litigation. Additionally, in 2006 San Mateo County introduced
its own Complex
Civil Litgation Program. The rules
of the court are available online. An article
notes that the program in San Mateo County makes sense becuase
of its proximity to Silicon Valley and major biotech research
companies that may produce complex cases.
The state decided on these programs in lieu of a dedicated
business court, finding that complex civil litigation programs
would be more beneficial to the state in general. The programs
include a separate calendaring of complex cases and assignment
to judges who have expertise in such cases. Program judges are
encouraged to use innovative management techniques to tailor
discovery, resolve deposition disputes, and assist in informal
dispute resolution. A final
evaluation of this program was completed in June of 2003.
A recent fact
sheet gives a brief overview of California's Complex Civil
Litigation Program.
- Colorado
Colorado does not currently have a separate docket or program
for complex civil litigation. In 2000, the Governor's task force
on Civil Justice Reform recommended in its final
report that the state of Colorado establish business courts
to adjudicate commercial cases. However, it was determined that
there were not enough commercial cases filed in Colorado to
justify the time and expense necessary to establish a separate
business court.
- Connecticut
Connecticut offers a specialized
court division dedicated to hearing complex litigation matters.
The State has designated this program as the Complex
Litigation Docket in the Superior Court, Civil Division.
Offered in five court locations (New Britain, Norwich, Stamford,
Tolland, and Waterbury), the specialized session of the Superior
Court handles cases involving multiple litigants, legally intricate
issues, lengthy trials or claims for large monetary damages
(potentially in the millions of dollars.
Parties may request that a case be placed on the Complex Litigation
Docket. To request a transfer of the case to the Complex Litigation
Docket, the parties making the request should file an Application
for Case Referral – Complex Litigation Docket, along
with a $250.00 filing fee. Interested parties may obtain the
application forms at any Judicial District Clerk's Office. Objecting
parties shall have 15 days in which to file an "Objection
to Transfer to the Complex Litigation Docket" once the
Chief Administrative Judge of the Civil Division grants the
request.
The Court will schedule a hearing for any objections to transfer.
The Chief Administrative Judge will decide whether a case initially
qualified as complex litigation should keep its designation.
On recommendation from the Chief Administrative Judge, the Chief
Court Administrator issues the final approval for adding the
case to the Complex Litigation Docket.
This Special Session of the Superior Court will employ the individual
calendar method of case management, where one judge will preside
over the litigation in its entirety. Moreover, cases on the
Complex Litigation Docket will comport with existing Connecticut
Practice Book rules. Such a system can serve several useful
purposes. For example, in terms of alternative dispute resolution
practices, judges may help facilitate the resolution of cases
before trial by serving as mediators within the special division.
See Lee Applebaum, Commerce Court ADR Procedure Suited
to Business Courts, THE LEGAL INTELLIGENCER, Feb. 7, 2006, at
5. Parties may view complex litigation judges as trustworthy
and credible mediators. Consequently, cases may be more likely
to settle outside of trial. Successful mediation would increase
the efficiency of the court system by reducing the each individual
judge's trial docket.
- Delaware
While Delaware does not have a court that solely hears business
and commercial matters, its Court
of Chancery is recognized as the nation's leading trial
court addressing issues of corporate law, and because of the
number of businesses incorporated in Delaware, its Superior
Court hears significant disputes addressing commercial and
corporate actions over money damages. The Superior Court does
provide for Summary
Proceedings, which allows for major commercial litigation
to be resolved expeditiously and cost-effectively. However,
a case must meet certain requirements to be eligible for a Summary
Proceeding. Under 10
Del. C. §§ 346, 347, since 2003, the Court of
Chancery has been empowered to mediate certain non-equity technology
and business disputes; and, in some circumstances, to entertain
original
(mediation only) jurisdiction over the full litigation of
solely monetary technology or business disputes. Delaware recently amended
the law regarding arbitration, authorizing the Court of Chancery to arbitrate disputes even where there is no underlying litigation pending before the Court.
Additionally two very good blogs that cover the Court of Chancery,
are the Delaware
Business Litigation Report and the Delaware
Corporate and Commercial Litigation Blog. For an in depth
discussion of the history and impact of of Delaware's courts
in business and commerical law, see "The
History Delaware's Business Courts," published in Business
Law Today.
- Florida
There are four business court programs in Florida,
located in Orlando, Miami, Tampa, and Broward County. The Ninth
Judicial Circuit Court's Complex
Business Litigation Court in Orlando has been in operation
since January of 2004. Available information includes a helpful
brochure and a video from Governor Jeb Bush speaking about the
business court.
In 2007, the Eleventh
Judicial Circuit Court, located in Miami, created its own
Complex Business Litigation Court. Likewise, the Thirteenth
Judicial Circuit's Complex Business Litigation Division,
located in Tampa, became operative not long thereafter.
In 2008, the Broward
County Circuit Court created the Complex Litigation Unit.
This three judge unit will hear cases with complex discovery,
numerous parties or extensive pre-trial motions. The Business
Law Section of the Florida Bar also has a helpful website
about business courts in Florida.
- Georgia
On June 6, 2007, the Fulton Superior Court in Georgia amended
the rules of its Business
Case Division. The amended
rules: (1) allow cases to transfer from the Fulton County
Superior Court to the Business Case Division upon a request
submitted by the Superior Court Judge currently assigned to
that case, or the motion of a party; (2) carve out cases involving
wrongful death, personal injury, discrimination and individual
consumer claims less than $1M from the Business Case Division,
unless consented to by all parties; and (3) provide a 20-day
briefing period for the parties to object to the proposed transfer
of the case. In addition, the Gwinnett Superior Court and the
Gwinnett State Court ended a six-month
business court pilot program, modelled after the Fulton
County Business Court, on June 31, 2008. Gwinnett Judges are
currently compiling a report documenting the cases assigned,
and the dispositions to determine if the Business Division should
be continued. Cases argued before the Division include large
contractual and business tort cases as well as other complex
commercial litigation. However, one problem with the Division
is that both parties must agree to move the case to the Business
Division, creating problems when one
side refuses.
- Illinois
The Circuit Court of Cook County has commercial
calendars. The commercial calendars hear cases that involve
a commercial relationship between the parties. This along with
the New York Commercial Division is the first post-Delaware
Court of Chancery specialized business court docket. The Docket
started in 1993. The Chancery
Division hears intracorporate business disputes.
General Order 2.1(b)(1) describes the proceeding
to be heard in the General Chancery Section.
- Maine
The Business
and Consumer Docket ("BCD") was established in
June 1, 2007 with the purpose of providing predictable judicial
action in selected cases involving business and/or consumer
disputes, avoiding unnecessary burdens on the court and the
litigants in such cases, keeping litigation costs reasonable,
and promoting an effective and efficient process for resolving
such disputes. Cases that may be considered for transfer
to the BCD are jury and non-jury civil actions and family matters
that do not involve children, in which the principal claim or
claims involve matters of significance to the transactions,
operations or governance of a business entity and/or the rights
of a consumer arising out of transactions or other dealings
with a business entity. Cases transferred to the BCD also require
specialized and differentiated judicial management. Any party
may submit an application to transfer their case to the BCD.
Trial judges and justices may also file a recommendation to
transfer a case to the BCD. It is solely to the discretion of
the BCD judge reviewing the transfer application to either accept
or reject a case transfer to the BCD. When determining whether
a case will get transferred the BCD judge may consider a number
of factors.
- Maryland
Maryland state courts have a Business
and Technology Case Management Program to adjudicate complex
or novel business and technology issues. Cases are assigned
to this program when they present "commercial or technological
issues of such a complex or novel nature that specialized treatment
is likely to improve the administration of justice." The
website makes opinions
issued by program judges available on-line. The Baltimore City
Circuit Court has established a helpful website for the Business
and Technology Case Management Program in its court.
- Massachusetts
The Business
Litigation Sessions (BLS) of the Superior Court was created
in 2000 and since 2003, has been available for cases initiated
in Suffolk, Essex, Middlesex, and Norfolk counties. On January
19, 2009 the Business Litigation Sessions of the Superior Court,
passed Administrative
Directive 09-1 which established the Business Litigation
Sessions as permanent sessions of the Superior Court located
in the Suffolk County Superior Court. The Suffolk County Civil
Clerk's Office is the clerk's office for the BLS. When a plaintiff
seeks to have a case accepted into the BLS, a plaintiff shall
file the Case in the Suffolk County Civil Clerk’s Office
and complete the BLS Civil Action Cover Sheet, stating reasons
why the case should be accepted into the BLS. The BLS complaint
and BLS Civil Action Cover Sheet shall be brought directly to
the clerk of the BLS Administrative Justice. The BLS Administrative
Justice determines whether or not to accept a case into the
BLS. Cases which fall under 17 categories may be accepted into
the BLS in the sound discretion of the BLS Administrative Justice.
The BLS Administrative Justice’s decision on cases which
fall into these categories shall be based principally on the
complexity of the case and the need for substantial case management.
- Michigan
In 2002, Michigan legislators passed a law to create a "Cyber
Court", an idea that was then revolutionary. The court
would have jurisdiction of commercial and technology cases exceeding
$25,000. More interestingly, the court would have specials perks,
such as electronic document filing, virtual courtrooms, and
the ability to serve parties through email. However, the Cyber
Court was never funded and did not become operational. At the
time the development was considered, the Business Court Ad Hoc
Committee answered some frequently
asked questions about establishing such a court.
- Mississippi
Mississippi is in the process of developing state business courts.
After seeing the advantages of such systems in other states,
Mississippi has created a "Business
Courts Study Group" to asess the viability
of a state business court system in Mississippi. The study
group has begun posting materials. In November 2008 the
Business Courts Study Group issued its recommendations
for the proposed pilot program. The program will be in the Circuit
Court and Chancery Court Districts in three regions (north,
central, south). The Chief Justice will appoint the three judges
from a list of recommended sitting or former judges made by
the Secretary of State. The study group’s recommendation
included a list of cases that would be assigned to the business
docket and cases that can be assigned to the business docket
upon mutual agreement. All cases pending at the time of the
establishment of the pilot program are transferable to the business
docket upon mutual agreement. A task force under the support
of the Supreme Court and the Secretary of State’s Office
shall be formed to collect, analyze, correlate and interpret
information and data concerning the Business Docket of each
Pilot Court in addition to detailed and specific data on the
volume of and types of all business cases pending and being
filed in the Mississippi court system.
- Nevada
Nevada's Supreme Court approved changes to local rules creating
business court programs in Nevada's 2nd (Reno) and 8th (Las
Vegas) Judicial Districts, and has subsequently amended
those rules. The 2nd District has created a Business Docket
that hears cases involving corporate governance issues, trademark
and trade secret claims, state securities law, deceptive practices
act claims and "any disputes among business entities if the
presiding judge of the business court docket determines that
the case would benefit from enhanced case management."
The 8th District created a Business Court that expressly oversees
the same categories of cases, as well as UCC actions, and has
heard cases involving trademark actions, shareholder disputes
and business litigation. Currently, lawmakers in Nevada are
considering a state constitutional amendment to create a new
business court statewide, modeled after Delaware Courts, to
help accommodate the growing number of companies that incorporate
in Nevada. An article
in the Las Vegas Review Journal explains more about the 2nd
District's Business Docket, the 8th District's Business Court,
and discusses what legislators are considering for the future.
Recently, a Legislative Subcommittee has been studying possible
revisions to the business courts in Nevada. The subcommittee
makes the minutes
of its meetings available to the public. A Las
Vegas Review-Journal notes that Nevada has decided not to
create a Chancery court, but rather will support having buisness
court judges publish their opinions. This will help to create
a body of case law for businesses and their attorneys to turn
to when evaluating business decisions. Additionally, in an effort
to encourage business to locate in Nevada, the Secretary of
State has created a website
detailing the benefits of their business court system.
- New
Hampshire
On June 3, 2008, the Governor signed into law a
bill that allows for the creation of a state business court.
An article
expresses excitement of over the authorization to create the
court. Currently New Hampshire, despite budget problems,
is pushing ahead to form the business court. An article in the
New
Hampshire Business Review reports that if the Govenor's
budget is approved the state will be appointing the first business
court judge. The state is emphasizing that the business court
judge will help to alleviate congestion in the courts and speed
up the court system's capacity to handle both the general and
specialized docket.
- New
Jersey
New Jersey has had a Complex Commercial Pilot Programs in
Bergen (Hackensack) and Essex (Newark) Counties — its
two largest counties — since 1996. In 2004, New Jersey
started a complex commercial case pilot
program in Burlington, Hudson, Mercer, and Ocean Counties.
Recent efforts at creating a commercial and technology part
within New Jersey's Law Division proved unsuccessful. An earlier
report created in connection with a similar effort disscussed
factors the state considered when determining whether to create
such a division.
- New
York
As part of the Supreme Court of New York State, the Commercial
Division handles complicated commercial cases with a monetary
threshold between $25,000 to $100,000 depending on the county.
The Commercial Division enforces strict discovery deadlines,
allows all participants in the program to use electronic filing,
and may refer cases to mediation before "neutrals"
- experienced lawyers who have volunteered their services to
the court - at any time. In 2006, the Commercial Division adopted
statewide
uniform rules governing jurisdiction and procedures of the
court. A recent law
review article by Ari Davis discusses the Commercial Division's
use of ADR. Additionally, the New
York Business Divorce blog offers interesting commentary
on many New York business cases.
A 2006
Focus Group Report has analyzed the success of the commercial
division and identifies features of the commercial division
that could be helpful to other courts. The New York Commercial
Division has received numerous accolades, including the 2006
Stanley
F. Fuld award presented by the New York State Bar Association
of Commercial and Federal Litigation.
- North
Carolina
The Business
Court, established in 1995 within North Carolina's
Superior Court, hears specially designated complex commercial,
business and technology disputes. Under current rules, certain
categories of cases are presumptively within the Business Court's
jurisdiction, while other cases remain subject to discretionary
assignment by the Chief Justice of North Carolina Supreme Court.
The Business Court has three judges, hearing cases state-wide,
with a single Judge handling each case from beginning to end.
The Business court publishes its opinions. Recently a
private practitioner has created a blog
to comment on such opinions. Another practioner has commented
extensively on the history of the court and the reasons for
having such a court in North Carolina.
- Ohio
The Ohio court system currently has a pilot
program for commercial litigation. The pilot program initially
started in four counties (Hamilton, Franklin, Lucas, and Cuyohoga)
in January 2009. A FAQ
is available regarding logistics of the Commercial Docket. More
information about the Ohio pilot program is available here.
- Oregon
Oregon's Second Judicial District (Eugene, Lane County Circuit
Court) has implemented the Commercial
Court Program, wherein appropriate cases are assigned to
a single judge. The Presiding Judge is the gatekeeper on accepting
cases into the Commercial Court, but has been given guidance
through an Operating Statement, on a wide range of business
and commercial disputes that may be appropriate for the Program,
as well as products liability, mass tort actions, environmental
litigation and class actions. The Commercial Program's website,
publishes the Court's opinions.
- Pennsylvania
The First Judicial District of Pennsylvania (Philadelphia)
has a specialized Commerce
Program. Cases must meet certain criteria
before being assigned to the Commerce Program. Opinions
of the Commerce Program are available online. The Business
Litigation Committee of the Philadelphia Bar Association
has a helpful website for litigators appearing before the Commerce
Court. A brief
history of the Commerce Court was recently published.
The Court of Common Pleas of Allegheny County (Pittsburgh)
has instituted the Commerce
and Complex Litigation Center "to enhance the disposition
of commerce and complex litigation in Allegheny County."
The Commerce and Complex Litigation Center has a specialized
docket and procedures.
- Rhode
Island
The Superior
Court of Rhode Island has a Business Calendar which serves
as an efficient alternative for complex business cases. The
Business Calendar was created by administrative
order. It hears cases such as breach of contract, business
tort, U.C.C. transactions, shareholders derivatives suits, and
other complicated commercial disputes.
- South
Carolina
By administrative
order the Chief Justice of South Carolina's Supreme Court
has created a Business Court Pilot Program. The Business Court
will handle complex business, corporate and commercial matters.
The Pilot Program will begin with three Circuit Court Judges
located in Charleston County, Greenville County and Richland
County.
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