The Business Court was formed in 1995.  Judge Ben F. Tennille was the first Judge of the Court, appointed by the Chief Justice of the North Carolina Supreme Court in 1996.  That appointment was pursuant to Rule 2.2 of the North Carolina General Rules of Practice, which provides that the Chief Justice may "designate one or more superior court judges as special judges to hear and decide complex business cases. . . ."  

Rule 2.2 contains commentary on the reasons behind the formation of the Business Court, which was a recommendation of the North Carolina Commission on Business Laws and the Economy.  The Commision noted the lead of Delaware’s Chancery Court in the area of specialized courts hearing matters involving corporate law:

many national corporations incorporate in the state of Delaware because of that state’s Chancery Court which provides a high level of judicial expertise on corporate law issues. It also observed the desirability of a state having a substantial body of corporate law that provides predictability for business decision making. Also, it is essential that corporations litigating complex business issues receive timely and well reasoned written decisions from an expert judge.

Over the last 12 years, the Business Court has issued nearly 150 "published" opinions (those given an official "NCBC" citation) and numerous unpublished decisions on significant legal issues affecting consumers, shareholders, and businesses operating in North Carolina.

If you are interested in the history of the Court, this article published in the Journal of the North Carolina Banking Institute is excellent.  And if you are delving into that subject, it is worthwhile to read the Report issued by the North Carolina Chief Justice’s Commission on the Future of the North Carolina Business Court.  The Commission recommended an expansion of the Court, which led to the addition of Judge Albert Diaz and Judge John Jolly to the Court.  An article about the recent expansion of the Court written by Ben Norman, a Brooks Pierce lawyer who clerked for Judge Tennille, is here.

Judge Tennille reported to the North Carolina Legislature on the first several years of the Court, from 1996-2000, in a detailed report.  Another report, for 2000-2001 is here.  The most recent report, for 2006-2008 is here. Continue Reading History Of The North Carolina Business Court

A case cannot be filed directly in the Business Court. It must be designated to the Court either by the Plaintiff, at the time of the filing of the Complaint, or by the Defendant, within 30 days of the receipt of the Complaint. Such a motion will be denied if it is untimely, as happened in this case.  The procedure is similar to removal to federal court based on diversity jurisdiction, and is set out in Section 7A-45.4 of the North Carolina General Statutes.

That statutue, as recently amended, describes seven categories of cases that qualify to be designated as “mandatory complex business cases.”  They are:

(1) The law governing corporations, except charitable and religious organizations qualified under G.S. 55A-1-40(4) on the grounds of religious purpose, partnerships, limited liability companies, and limited liability partnerships, including issues concerning governance, involuntary dissolution of a corporation, mergers and acquisitions, breach of duty of directors, election or removal of directors, enforcement or interpretation of shareholder agreements, and derivative actions.

(2) Securities law, including proxy disputes and tender offer disputes.

(3) Antitrust law, except claims based solely on unfair competition under G.S. 75-1.1.

(4) State trademark or unfair competition law, except claims based solely on unfair competition under G.S. 75-1.1.

(5) Intellectual property law, including software licensing disputes.

(6) The Internet, electronic commerce, and biotechnology.

(7) Tax law, when the dispute has been the subject of a contested tax case for which judicial review is requested under G.S. 105-241.16 or the dispute is a civil action under G.S. 105-241.17.

Continue Reading Jurisdiction Of The Business Court

Judge Ben F. Tennille, the Chief Judge of the Court, sits in Greensboro, North Carolina, in chambers located inside the Elon University Law School.  A bio and a profile of Judge Tennille are here.  This is an article written by Judge Tennille about the use of mediation in the Business Court. 

Judge Albert Diaz sits…