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The History of Business Courts in NC

Tuesday, August 4, 2009 by B. Joan Davis

The History of Business Courts in NC

Governor James B. Hunt established the North Carolina Commission on Business Laws and the Economy (also know as the “Commission”) in April 1994. The Commission was established to recommend any changes to existing laws, statutes, or regulations which affected the operation of businesses in the state of North Carolina. In addition, the Commission would also make recommendations regarding any new laws, rules, or regulations to create productive legal environment for businesses. By doing this, the state legislations hoped to create an environment for existing businesses to operate successfully and thrive as well as attract new businesses to the area.

In January 1995, the Commission issued a report with its recommendations which included a proposal that North Carolina establish a business court. While North Carolina had amended their business laws to be consistent with the Model Business Corporation Act, its court system was still not prepared to deal with any complex corporate issues.

In the fall of 1995, the legislature appropriated the funds needed to establish a North Carolina Business Court. As part of the new laws, the Chief Justice is allowed to designate a case as a complex business case. The Chief Justice is also allowed to designate these cases to Special Superior Court Judge for Complex Business Cases. In January 1996, Ben F. Tennille was appointed as the first Special Superior Court Judge for Complex Business Cases.

By creating a business court, the state of NC has recognized complex business litigation as specialized and judges with business litigation experience and knowledge should be the ones to hear those cases. The American Bar Association (ABA) has also recommended that all states adopt a business court or some form of it.

In today’s society, there are constant changes in the commercial environment as well as the technological business environment. A business court has almost become more of a necessity in order to quickly handle business litigation in our ever changing world.

This article has been provided by Raleigh business attorneys Howard, Stallings, From & Hutson, P.A., Raleigh, NC, 919-821-7700, www.howardstallings.com

Posted at 14:33 PM

Topic: Business Law