Business Courts in the United States and Around the World

The Netherlands

The Dutch Companies and Business Court in the Netherlands function as a separate section of the general court of appeal in Amsterdam. The bench consists of five people, three of whom are specialist judges with legal training; the remaining two are lay experts. It is important to note that a business court exists in the Netherlands because it is a civil law system, which indicates the varied forms of governance that business courts can adapt to.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Ireland

The Commercial List of the High Court of Ireland was established in 2004. The court is presided over by one judge, with expertise in business law. To be eligible for the commercial list, the claim must be a business dispute, and must be for at least 1,000,000 Euros. There is no entitlement to the use of the court; it is solely left to the judge’s discretion if the statutory cap is met.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Hong Kong

Hong Kong has established a business court as a division of the High Court of Hong Kong by way of a Commercial List establishing standards and issues that fall under the business court’s jurisdiction. Under the Rules of the High Court, the Chief Justice has power to make special provision for particular types of proceedings allowing certain business before the Court of First Instance is dealt with by specialist judges applying the Commercial List. This division of the High Court also seeks to provide expeditious and competent results in complex commercial cases.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Australia

Sydney, Australia has maintained a commercial court for over 100 years. It was established in 1903 under the Commercial Causes Act as a division of the state Supreme Court. The Court operates under the guide of a Commercial List setting the types of cases and issues that it may hear. The Commercial List also contains a function mandating summary and informal pleadings and a flexible approach to discovery and other interlocutory issues with a view to expedition and saving costs. Six judges are assigned to this Court, 3 under the Corporations List and 3 under the Commercial List. The Commercial Court has been very effective and generally praised as a tool for those involved in complex business litigation.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

England and Wales

England and Wales contain both a Commercial Court and Admiralty Court reflecting the fact that the same judges sit in the two courts with a shared administration and common practice. The jurisdiction of the Commercial Court extends to any claim relating to the transactions of trade and commerce (including commercial agreements, carriage of goods by seas, import and export, arbitration and competition matters). The Admiralty Court has exclusive jurisdiction over certain maritime claims (including the arrest of ships, collisions and salvage). It has co-extensive jurisdiction to that of the Commercial Court in respect to many claims under bills of lading or under charter parties.

This system of co-extensive jurisdiction will be coming to a halt in 2010 with the arrival of the “Business Court” which will incorporate portions of the work of the Chancery Division, the Commercial Courts, and the Technology and Construction Court. Trademark issues, patent disputes, and international contract issues will also be included in the court’s jurisdiction. By having specialist judges hear business-related cases in a single building designed for that specific purpose and built to make effective use of information technology, the two goals of expertise and efficiency should be served.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Business Courts from Around the Globe (A Brief Prospective)

The following section of this Blog will provide brief case studies of international business courts from around the globe. The list of examples is certainly not exhaustive, but it does provide a nice backdrop for illustrating the varied forms a business court can take. Moreover, as explained below, no two countries’ business courts are identical in every fashion, suggestive of the varied approaches tailored to fit the needs of a given jurisdiction.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

The Delaware Model

The Delaware Court of Chancery, created in 1792, was the first business court established in the United States. The Court of Chancery has broad jurisdiction over disputes involving the internal affairs of Delaware business entities, disputes arising in corporate matters, trusts, estates, and other fiduciary matters, disputes involving the purchase and sale of land, questions of title to real estate, and commercial and contractual matters in general. It also tackles technology disputes arising out of agreements involving at least one Delaware business entity. Once a case has been filed and it concerns a business matter there is a presumption that the case belongs in the Court of Chancery at the time of filing; however the Chancellor/Vice Chancellor has discretionary authority to transfer the case to Superior Court.

The Court of Chancery has been a model for other business courts to follow and apply their own specific adaptations to meet the growing needs of commercial litigants. Recently, in order to become more responsive to the needs of the large number of businesses which have organized in the state, the Delaware Court of Chancery has expanded its jurisdiction to hear and mediate technology-related disputes over $1 million upon mutual agreement of the parties, provided at least one of the parties is a Delaware business entity. It is also appropriate that Delaware would be the birthplace of such a court considering the unparralled amount of business that takes place in the State.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

The Benefits of Business Court and Case Management Enhancements in Nevada

There are multiple case management enhancements that Business Court provides to potential litigants. These include: (1) a requirement that cases appear for periodic status conferences with joint status reports to promote effective case management; (2) judges being available for hearings on short notice due to the designated conflict/back-up judges that are able to hear the matter in cases of emergency; (3) the designation of a case as complex thus removing discovery issues from the purview of the Discovery Commissioner; and (4) the encouragement of parties to consolidate a trial on the merits with preliminary injunction evidentiary hearings.

The benefits of Nevada’s Business Court are as follows: (1) selection of judges is based on their specialized experience in business litigation; (2) reduced civil caseload allows Business Court judges to give greater attention to their business court matters, and to manage those cases aggressively; (3) speedy resolution of cases; (4) Business Court Settlement Conference Programs (the goals of these conferences include: (a) expediting the case; (b) streamlining issues for discovery; and (c) determining whether the parties are willing to attend an early settlement conference. Even if settlement is not being considered, this conference should kick-off and expedite the litigation process); and (5) Electronic Filing Order which facilitates efficient and organized case management in complex cases where multiple parties and claims have been joined and saves law firms and their clients significant costs associated with preparing multiple copies of large pleadings. For more information on the benefits of Business Court in Nevada see http://whynevada.com/businesscourts/furtherbenefits.asp.

The current Nevada Business Court Judges are Judge Brent Adams (2nd Judicial District Court), Judge Mark Denton (8th Judicial District Court), and Judge Elizabeth Gonzalez (8th Judicial District Court).

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Nevada Business Courts

In Nevada, the Business Court dockets were created on the model of business courts located within Delaware, Maryland, Pennsylvania, and North Carolina. As such, the creation of the Business Court is an embodiment of Nevada’s efforts to attract corporations and other business entities to locate in Nevada. Nevada business lawyers have noted that the main goals of the Business Court are to provide comprehensive case management to avoid business interruption during pending litigation, provide close management of factually and/or legally complex commercial litigation, and provide consistency of decisions to enable business planning. Moreover, Nevada wants to ensure that any legal disputes will be handled efficiently, competently, predictably, and that they will be able to continue business activities with minimal interruption. For more information see http://whynevada.com/businesscourts/.

Obtaining jurisdiction in Nevada Business Courts is within the sole discretion of the Business Court judge who receives a transfer request by one of the litigating parties. The judge’s decision to accept or decline jurisdiction of the case is final. There are no appeals to this jurisdictional question, allowing for an expedient resolution in commercial litigation.

Within Nevada’s Business Court, these types of cases may be filed under Eighth Judicial District Court Rules (EDCR) Rule 1.61 concerning the “Assignment of Business Matters.” These matters involve: (1) disputes concerning the validity, control, operation, or governance of entities created under Nevada Revised Statutes Chapters 78-88, including shareholder derivative suits; (2) disputes concerning trademarks asserted under Nevada law, causes of action asserted pursuant to the Nevada Trade Secrets Act, the Nevada Securities Act, involving investment securities described in Article 8 of the Nevada UCC, or commodities described in NRS Chapter 90; (3) disputes between two business entities where the court determines that the case would benefit from enhanced case management (business entities on both sides of the “v”, and the case involves complex facts and or legal issues – this catchall provision provides that it is left to the discretion of the Business Court Judges to determine whether the case is appropriate for Business Court).

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Obtaining Jurisdiction in Business Courts

Some business courts have concurrent jurisdiction over selected types of business cases. There are several methods for obtaining jurisdiction in these courts: (1) either party can file a motion to have the case transferred to the business court/docket; (2) a plaintiff can file an initial designation to have the case placed in the business court/docket at the beginning of the proceedings. The Chief Administrative Judge of the district or circuit where the court is located usually decides if the case belongs in the business court/docket; (3) the Chief Justice of the Supreme Court of the state where the business court is located decides which cases are appropriate for the business court; (4) a group of judges decide together what cases will be assigned to the business court; (5) the business court judge who receives the application for transfer makes the sole and final decision of whether the case is appropriate for the business court; and/or (6) a civil court judge can also file for transfer of a case that has been assigned to him/her from civil court to business court.

In other jurisdictions business courts have mandatory jurisdiction. Maine has optional jurisdiction allowing any superior court judge, district court judge, party, or attorney to recommend a case for transfer to the business court leaving the ultimate decision to the business court judge. Philadelphia has mandatory jurisdiction over a case if both parties are located in the jurisdiction and the case involves a commercial dispute; otherwise, jurisdiction is optional and at the judge’s discretion.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Creating Business Courts

In general, the creation of a business court consists of two steps: (1) the removal of cases from general dockets to the business court docket and, (2) the appointment of judges to the business court. The addition of business court judges usually requires no extra expense to the state or jurisdiction because such judges are reassigned to the business court from other courts and no new judges are hired. Thus, no new funds are needed. Additionally, most jurisdictions reallocate existing appropriated funds from their existing court to the business court. Global business lawyers have lauded the advancements business courts have made in expediting complex business litigation.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.

Business Courts in the United States and Around the World

Introduction

Business courts across the United States handle matters concerning complex commercial litigation. Most courts retain specialized judges with years of experience handling complex business related cases. Business courts have been widely successful and are present in 18 states and counties. Many states that have yet to implement a business court structure are looking into establishing the same. This major shift to specialization has helped foster more expeditious and competent results in extremely complex corporate and commercial law cases. In many jurisdictions across the United States business courts have simply created a specialized docket within an existing court either for business case designations or for complex litigation cases. This Blog will provide examples of business courts across the globe, along with a cursory review of specific business courts in the United States.

Disclaimer: This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. If you have questions or need specific advice relating to the matters contained herein, please contact Lovaas & Lehtinen, P.C.