Business court: what North Carolina companies need to know.

• Author: Buford, John
• Position: 2015 Law Journal

North Carolina was one of the first states to create a business court in order to make the court system more responsive to the demands of complex business litigation. The N.C. Business Court was designed with several goals in mind: to allow for the appointment of judges with expertise in substantive law and case management related to complex business issues; to further the development of a substantial body of written decisions on complex business issues to provide greater predictability for decision making; and to enhance the ability to act with speed and flexibility when dealing with complex legal issues.

In the fall of 1995, the North Carolina legislature appropriated the necessary funds and the Supreme Court of North Carolina amended and adopted the rules necessary to form the Business Court. In January 1996, Ben Tennille became the first special superior court judge for complex business cases, or Business Court judge. For approximately three years, Tennille and the Business Court operated without a permanent home or staff. In 1999, private foundations raised funds to lease space in downtown Greensboro, and the legislature approved an administrative assistant and a law clerk for the Business Court.

In 2006, the legislature acted to increase the influence of the Business Court, expanding into Raleigh and Charlotte and adding two new judges. The legislature also enacted an easier procedure permitting parties themselves to designate certain categories of cases directly to the Business Court, instead of seeking the recommendation of a local judge and the permission of the chief justice, as was previously required.

What's new in the Business Court?

In 2014, the legislature enacted the Business Court Modernization Act, which refined, clarified and expanded the types of actions that may be designated to the Business Court by any party. Qualifying cases involve a material issue in at least one of several categories:

* governance and other matters of corporate, partnership, or limited liability company law;

* securities law;

* antitrust law;

* trademark law;

* the ownership, use, licensing, lease, installation, or performance of intellectual property;

* trade secrets; or

* contract disputes where the amount in controversy is at least $1 million, at least one party on each side is a business, and all parties consent to the Business Court.

In addition to the categories above, there are now some lawsuits that must be designated to the Business...