August 9, 2023
Since 2019, 4 states have created new statewide business courts while other states have looked to expand their existing ones, suggesting increased interest in the need for such courts. Modern business courts were first created as specialized dockets in existing courts for complex cases starting in the 1990s in New York, Illinois, North Carolina, and New Jersey.
A key reason cited for the creation of these courts is the need for expediency and judicial expertise. Hamilton County (Indiana) Superior Court Judge Jon Brown said that the commercial court created in 2021 is helping to resolve disputes faster. There the focus is on cases involving breach of contract, trade secrets, non-compete agreements, indemnification issues, unfair competition, and insurance.
Similarly, when Georgia’s Court Reform Council released its final report in 2017, it recommended the creation of a statewide business court. The objective of the Georgia Business Court was to provide “specialized expertise for the adjudication of complex cases, ultimately enhancing litigation of complex matters by providing judicial resources specifically tailored to such cases.”
In the last 4 years, the 4 states that have created statewide business courts are:
- The Georgia State-wide Business Court (created by constitutional amendment in 2018; implementing legislation adopted in 2019);
- Wyoming Chancery Court (created by statute in 2019; effective date of December 1, 2021);
- Utah Business and Chancery Court (enacted 2023, the effective date/stand-up date is October 2024); and
- Texas Business Court (enacted in 2023, the effective date/stand-up date for the court is September 2024).
Delaware’s Court of Chancery, established in 1792 and often cited as the first business court in the U.S., does hear other case types. By 2020, 25 states had this type of specialized court.
Does your state have enough volume or require the expertise of a business court or specialty docket for complex commercial dockets? Share your information or ask a question via Knowledge@ncsc.org or call 800-616-6164. Follow the National Center for State Courts on Facebook, Twitter, LinkedIn, and Vimeo.