HB-5128, As Passed House, September 27, 2012HB-5128, As Passed Senate, September 20, 2012

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5128

     A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending section 308 (MCL 600.308), as amended by 1994 PA 375,

by amending the heading for chapter 80, and by adding sections

8031, 8033, 8035, 8037, 8039, 8041, 8043, 8045, and 8047; and to

repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 308. (1) The court of appeals has jurisdiction on appeals

from the following orders and judgments which shall be appealable

as a matter of right:

     (a) All final judgments from the circuit court, court of

claims, and recorder's court, except judgments on ordinance

violations in the traffic and ordinance division of recorder's

court and final judgments and orders described in subsection (2).

subsections (2) and (3).

     (b) Those orders of the probate court from which an appeal as

of right may be taken under section 861.

     (2) The court of appeals has jurisdiction on appeal from the

following orders and judgments which shall be reviewable only upon

application for leave to appeal granted by the court of appeals:

     (a) A final judgment or order made by the circuit court under

any of the following circumstances:

     (i) In an appeal from an order, sentence, or judgment of the

probate court under section 863(1) and (2).

     (ii) In an appeal from a final judgment or order of the

district court appealed to the circuit court under section 8342.

     (iii) An appeal from a final judgment or order of a municipal

court.

     (iv) In an appeal from an ordinance violation conviction in the

traffic and ordinance division of recorder's court of the city of

Detroit if the conviction occurred before September 1, 1981.

     (b) An order, sentence, or judgment of the probate court if

the probate court certifies the issue or issues under section

863(3).

     (c) A final judgment or order made by the recorder's court of

the city of Detroit in an appeal from the district court in the

thirty-sixth district pursuant to under section 8342(2).

     (d) A final order or judgment from the circuit court or

recorder's court for the city of Detroit based upon a defendant's

plea of guilty or nolo contendere.

     (e) Any other judgment or interlocutory order as determined by

court rule.

     (3) An order concerning the assignment of a case to the

business court under chapter 80 shall not be appealed to the court

of appeals.

CHAPTER 80

THE CYBER BUSINESS COURT

     Sec. 8031. (1) As used in this section to section 8047:

     (a) "Business court" means a special docket as described and

organized under section 8033 and administered as provided in this

section to section 8047.

     (b) "Business enterprise" means a sole proprietorship,

partnership, limited partnership, joint venture, limited liability

company, limited liability partnership, for-profit or not-for-

profit corporation or professional corporation, business trust,

real estate investment trust, or any other entity in which a

business may lawfully be conducted in the jurisdiction in which the

business is being conducted. Business enterprise does not include

an ecclesiastical or religious organization.

     (c) "Business or commercial dispute" means any of the

following:

     (i) An action in which all of the parties are business

enterprises.

     (ii) An action in which 1 or more of the parties is a business

enterprise and the other parties are its or their present or former

owners, managers, shareholders, members, directors, officers,

agents, employees, suppliers, or competitors, and the claims arise

out of those relationships.

     (iii) An action in which 1 of the parties is a nonprofit

organization, and the claims arise out of that party's

organizational structure, governance, or finances.

     (iv) An action involving the sale, merger, purchase,

combination, dissolution, liquidation, organizational structure,

governance, or finances of a business enterprise.

     (2) Business or commercial disputes include, but are not

limited to, the following types of actions:

     (a) Those involving information technology, software, or

website development, maintenance, or hosting.

     (b) Those involving the internal organization of business

entities and the rights or obligations of shareholders, partners,

members, owners, officers, directors, or managers.

     (c) Those arising out of contractual agreements or other

business dealings, including licensing, trade secret, intellectual

property, antitrust, securities, noncompete, nonsolicitation, and

confidentiality agreements if all available administrative remedies

are completely exhausted, including, but not limited to,

alternative dispute resolution processes prescribed in the

agreements.

     (d) Those arising out of commercial transactions, including

commercial bank transactions.

     (e) Those arising out of business or commercial insurance

policies.

     (f) Those involving commercial real property.

     (3) Notwithstanding subsections (1) and (2), business or

commercial disputes expressly exclude the following types of

actions:

     (a) Personal injury actions including, but not limited to,

wrongful death and malpractice actions.

     (b) Product liability actions in which any claimant is an

individual.

     (c) Matters within the jurisdiction of the family division of

circuit court.

     (d) Proceedings under the probate code of 1939, 1939 PA 288,

MCL 710.21 to 712A.32.

     (e) Proceedings under the estates and protected individuals

code, 1998 PA 386, MCL 700.1101 to 700.8206.

     (f) Criminal matters.

     (g) Condemnation matters.

     (h) Appeals from lower courts or any administrative agency.

     (i) Proceedings to enforce judgments of any kind.

     (j) Landlord-tenant matters involving only residential

property.

     (k) Land contract or mortgage foreclosure matters involving

residential property.

     (l) Motor vehicle insurance coverage under the insurance code

of 1956, 1956 PA 218, MCL 500.100 to 500.8302, except where 2 or

more parties to the action are insurers as that term is defined

under section 106 of the insurance code of 1956, 1956 PA 218, MCL

500.106.

     (m) Insurance coverage disputes in which an insured or an

alleged insured is an individual consumer.

     (n) Employment discrimination.

     (o) Civil rights including, but not limited to, an action

brought under any of the following:

     (i) The Elliott-Larsen civil rights act, 1976 PA 453, MCL

37.2101 to 37.2804.

     (ii) The persons with disabilities civil rights act, 1976 PA

220, MCL 37.1101 to 37.1607.

     (iii) Chapter XXI of the Michigan penal code, 1931 PA 328, MCL

750.146 to 750.148.

     (p) Wrongful discharge, except for actions involving corporate

officers or directors.

     (q) Worker's compensation claims under the worker's disability

compensation act, 1969 PA 317, MCL 418.101 to 418.941.

     Sec. 8033. (1) Every circuit with not fewer than 3 circuit

judges shall have a business court and shall submit a plan for the

operation of the business court to the state court administrative

office and the supreme court for approval.

     (2) A circuit other than a circuit described in subsection (1)

may submit an administrative order for the operation of a business

court to the state court administrative office and the supreme

court for review as part of a concurrent jurisdiction plan.

     (3) The purpose of a business court is to do all of the

following:

     (a) Establish judicial structures that will help all court

users by improving the efficiency of the courts.

     (b) Allow business or commercial disputes to be resolved with

the expertise, technology, and efficiency required by the

information age economy.

     (c) Enhance the accuracy, consistency, and predictability of

decisions in business and commercial cases.

     Sec. 8035. (1) A business court has jurisdiction over business

and commercial disputes in which the amount in controversy exceeds

$25,000.00.

     (2) Venue of a suit in the business court is as provided in

chapter 16.

     (3) An action shall be assigned to a business court if all or

part of the action includes a business or commercial dispute. An

action that involves a business or commercial dispute that is filed

in a court with a business docket shall be maintained in a business

court although it also involves claims that are not business or

commercial disputes, including excluded claims under section

8031(3).

     (4) An action shall be assigned to a business court judge by

blind draw, unless the jurisdiction and venue of the case lies in a

county described in section 8033(2).

     (5) An action assigned to a business court judge may be

reassigned by blind draw to another judge as prescribed by the plan

submitted under section 8033(1) or (2), as applicable, if the

action ceases to include a business or commercial dispute.

     (6) An action that does not initially include a business or

commercial dispute but that subsequently includes a business or

commercial dispute as a result of a cross-claim, counterclaim,

third-party complaint, amendment, or any other modification of the

action shall be reassigned by blind draw to a business court after

the action is modified to include a business or commercial dispute

as prescribed by the plan submitted under section 8033(1) or (2),

as applicable.

     (7) Upon motion of a party, the chief judge of the judicial

circuit may review assignments under subsections (3), (5), and (6).

The ruling of the chief judge under this subsection is not an order

that may be appealed under section 308.

     Sec. 8037. (1) Except as provided in subsection (7), a

business court consists of sitting circuit judges assigned by the

supreme court in a number reasonably reflecting the caseload of the

business court. While sitting as a judge of a business court, a

circuit judge may exercise the jurisdiction of the business court

as provided by law.

     (2) A circuit judge assigned as a judge of a business court is

assigned for a term of 6 years and may be reassigned at the

expiration of the judge's term.

     (3) The term of a judge of a business court expires on April

1, 2019, and on April 1 of every sixth year after that.

     (4) If a circuit judge acting as a business court judge before

whom a case has been tried or a motion heard is disabled or absent

from the place where court is held, another circuit judge

designated to sit as the judge of a business court may continue to

hear, determine, and sign all matters that his or her predecessor

could have heard, determined, and signed.

     (5) If a circuit judge designated to sit as a judge of the

business court leaves office for any reason before signing a

judgment and after a finding of fact or rendering an opinion upon

proof submitted and argument of counsel disposing of all or part of

the issues in the case involved, a successor as judge of the

business court may proceed with that action in a manner consistent

with the finding of fact or opinion. The successor judge has the

same powers as if the finding of fact had been made or the opinion

had been rendered by the successor judge.

     (6) If a circuit judge leaves office while sitting as a judge

of a business court, the supreme court may assign a circuit judge

to serve for the remainder of the judge's term on the business

court.

     (7) A concurrent jurisdiction plan adopted under chapter 4 and

approved by the supreme court may provide that 1 or more probate

judges or district judges within the circuit may exercise the power

and jurisdiction of the business court.

     Sec. 8039. (1) Whenever possible, an action commenced in a

business court shall be filed by electronic communications.

     (2) A business court shall meet minimum standards as

determined by the state court administrative office, which may

include electronic filing, telephone or video conferencing, and

early alternative dispute resolution intervention.

     (3) All written opinions in business court cases shall be made

available on an indexed website.

     (4) The practice and procedure of a business court not

otherwise governed by the provisions of sections 8031 to 8047 shall

be governed by practices and procedures prescribed for the circuit

court. The supreme court may adopt rules governing practice and

procedure in the business court.

     Sec. 8041. (1) An appeal from a business court shall be to the

court of appeals, as prescribed by supreme court rules.

     (2) The time within which an appeal as of right from a

business court may be taken shall be governed by supreme court

rules concerning appeals from the circuit court.

     Sec. 8043. The Michigan judicial institute shall provide

appropriate training for all circuit judges serving as business

court judges.

     Sec. 8045. The fees payable in civil actions in circuit court

apply to cases in a business court, unless otherwise provided by

law.

     Sec. 8047. Any case that is pending on a pilot business court

docket on January 1, 2013 shall remain on that pilot business court

docket and assigned to the judge who was initially assigned to that

case until its completion.

     Enacting section 1. Sections 8001, 8003, 8005, 8007, 8009,

8011, 8013, 8015, 8017, 8019, 8021, 8023, 8025, and 8027 of the

revised judicature act of 1961, 1961 PA 236, MCL 600.8001,

600.8003, 600.8005, 600.8007, 600.8009, 600.8011, 600.8013,

600.8015, 600.8017, 600.8019, 600.8021, 600.8023, 600.8025, and

600.8027, are repealed.

     Enacting section 2. This amendatory act takes effect January

1, 2013.