The History of Business Courts

The history of business courts varies greatly from state to state. Not all states have business courts and many have their own business courts history.

Proposed reason for business courts in California
The Ad Hoc Committee of the California Bar beginning in 1990 piloted a study to determine whether to implement business courts in California. The idea of establishing business courts was for the purpose of handling complex business cases with greater efficiency and less time consuming efforts resulting in faster resolution of complex commercial cases. This study culminated in 1997 based on a recommendation from the Business Court Study Task Force advising against the use business courts. The reason given was a lack of viable support for business courts to succeed. More specifically, in 1993, the California State Board Bar of Governors passed a resolution to block legislation establishing specialized courts for business cases, reasoning that such courts would unjustly favor business interests and draw the best judges and resources away from other types of cases. The Business Lawyer Vol. 60, November 2004.

Complex Civil Litigation Pilot Program
However, efforts continued to devise ways to improve management of California complex business cases. The Bar Judicial Counsel in 2000 established complex case management programs in six California Superior Courts which focused on improving the quality of judicial management so complex cases could be resolved more quickly, costs kept down, and effective decision making could occur.

Out of this program emerged legal clarification that defined complex business cases. Guidelines to determine whether or not a case is complex include:

• The number of pretrial motions
• Number of witnesses
• Separately represented parties
• Coordination necessary between courts in other counties, states, or countries
• Degree of post judgment judicial supervision required

Provisionally complex cases based on the inherent nature of the case, include:

• Antitrust/trade regulation claims
• Construction defect claims
• Securities/investment losses involving many parties
• Environmental/toxic torts involving many parties
• Mass tort claims
• Class actions
• Insurance claims arising out of the above

California Court Rule 1800 determined that, in general, complex cases required exceptional judicial management to avoid placing unnecessary burdens on the courts or litigants.
For more information about how complex business cases are handled in California, speak with an Orange County business lawyer.

Litigating a Business Dispute

Business Litigation
If you are in business, at some point you are bound to become involved in a dispute. Whether you are a small or large business, you need to be ready to deal with the inevitable frictions and disputes that arise out of your everyday transaction. When things become difficult and you are unable to resolve issues on your own, your best bet is to seek the advice and representation of a skilled Atlanta business attorney.

Small businesses in particular need to avoid becoming tied up in hostile commercial dealings that take the time of an owner and can rob you of your reputation. Do not risk losing your business. Contact an attorney with the experience, intelligence, and resolve to represent you should it become necessary to take your matter to trial.

Arbitration
Arbitration is a form of alternative dispute resolution that differs from both litigation and mediation. However, in certain ways arbitration is similar to both.

Arbitration employs impartial and knowledgeable arbitrators to settle a dispute outside of the court system. It is more private than litigation which goes to court and is public, and serves as an excellent forum for business dispute resolution.

In certain contracts such as in client brokerage agreements, arbitration may be required and it is often used to settle securities disputes between investors and stockbrokers. This approach provides quick and confidential business dispute judgment. An arbitration award is usually final and is difficult to appeal.

Mediation
The most common types of mediated business disputes include the following:

Negotiation of partnership contracts
Negotiation of facts of business formations
General conflict resolution

Mediation does not require both parties to hire representation and the process typically allows a business relationship to continue after the process is finalized.

There are several solutions available to resolve business disputes. An attorney experienced in business law can evaluate your situation and explain the route that should be best for your business. Whether it is mediation, arbitration, or litigation, an Atlanta business law firm of can see you through the process.