HOUSE BILL No. 5128

 

October 26, 2011, Introduced by Reps. Walsh and Heise and referred to the Committee on Judiciary.

 

     A bill to amend 1961 PA 236, entitled

 

"Revised judicature act of 1961,"

 

(MCL 600.101 to 600.9947) by adding chapter 10B

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

                             CHAPTER 10B

 

                           BUSINESS COURTS

 

     Sec. 1085. (1) As used in this chapter:

 

     (a) "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.


 

     (b) "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, customers, 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, noncompete,

 

nonsolicitation, and confidentiality 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 wrongful death and

 

malpractice actions against any health care provider.

 

     (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.

 

     Sec. 1086. (1) The business court is created as a division of

 

circuit court and is organized as prescribed under this chapter.

 

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

 

following:

 

     (a) Establish judicial structures that will help to strengthen


 

and revitalize the economy of this state.

 

     (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.

 

     (d) Encourage commerce by providing effective and low-cost

 

means of resolving disputes between businesses.

 

     Sec. 1087. (1) The business court has jurisdiction over

 

business or commercial disputes in which the amount in controversy

 

exceeds $25,000.00.

 

     (2) An action that involves a business or commercial dispute

 

may be maintained in the business court although it also involves

 

claims that are not business or commercial disputes.

 

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

 

chapter 16.

 

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

 

whose seat is located within the region to which the action is

 

assigned by blind draw, unless the jurisdiction and venue of the

 

case lies in a county described in section 1088(2).

 

     Sec. 1088. (1) Except as provided in subsection (2), the

 

business court is divided into 4 regions. The regions are

 

constituted and numbered as follows:

 

     (a) Region 1 consists of the counties of Calhoun, Hillsdale,

 

Lenawee, Monroe, and Wayne.

 

     (b) Region 2 consists of the counties of Genesee, Macomb,

 

Oakland, and Shiawassee.


 

     (c) Region 3 consists of the counties of Allegan, Barry,

 

Berrien, Branch, Cass, Eaton, Ionia, Jackson, Kalamazoo, Kent,

 

Muskegon, Newaygo, Ottawa, St. Joseph, Van Buren, and Washtenaw.

 

     (d) Region 4 consists of the counties of Alcona, Alger,

 

Alpena, Antrim, Arenac, Baraga, Bay, Benzie, Charlevoix, Cheboygan,

 

Chippewa, Clare, Clinton, Crawford, Delta, Dickinson, Emmet,

 

Gladwin, Gogebic, Grand Traverse, Gratiot, Houghton, Huron, Ingham,

 

Iosco, Iron, Isabella, Kalkaska, Keweenaw, Lake, Lapeer, Leelanau,

 

Livingston, Luce, Mackinac, Manistee, Marquette, Mason, Mecosta,

 

Menominee, Midland, Missaukee, Montcalm, Montmorency, Oceana,

 

Ogemaw, Ontonagon, Osceola, Oscoda, Otsego, Presque Isle,

 

Roscommon, Saginaw, Sanilac, Schoolcraft, St. Clair, Tuscola, and

 

Wexford.

 

     (2) If a circuit court, individually or in concert with 1 or

 

more other circuit courts, implements a special docket dedicated to

 

business or commercial disputes with the approval of the supreme

 

court, counties within that circuit or circuits are not part of a

 

region under subsection (1) so long as the special docket is in

 

operation in the circuit or circuits within the county.

 

     Sec. 1089. (1) The business court consists of circuit judges

 

assigned by the supreme court in a number reasonably reflecting the

 

caseload of the business court. While sitting as a judge of the

 

business court, a circuit judge may exercise the jurisdiction of

 

the business court as provided by law.

 

     (2) 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 under this chapter, another


 

circuit judge designated to sit as the judge of the business court

 

may continue to hear, determine, and sign all matters that his or

 

her predecessor could have heard, determined, and signed.

 

     (3) 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.

 

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

 

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

 

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

 

court.

 

     (5) A circuit judge assigned as a judge of the business court

 

is assigned for a term of 2 years and may be reassigned at the

 

expiration of the judge's term.

 

     (6) The term of a judge of the business court expires on May 1

 

of each odd-numbered year.

 

     (7) The supreme court may select a chief judge of the business

 

court from among the circuit judges assigned to the business court.

 

     Sec. 1090. (1) A majority of circuit judges while sitting as

 

judges of the business court shall appoint or remove the clerk of

 

the business court.

 

     (2) For making copies of records, proceedings, and testimony


 

and furnishing the same at the request of the claimant or any other

 

person, the clerk of the business court or any reporter or recorder

 

serving in the business court shall be entitled, in addition to

 

salary, to the same fees as are by law provided for court reporters

 

or recorders in the circuit court. No charge shall be made against

 

the state for services rendered for furnishing copies of records,

 

proceedings, or testimony or other papers to the attorney general.

 

     (3) Process issued by the court may be served by any member of

 

the Michigan state police as well as any other officer or person

 

authorized to serve process issued out of the circuit court.

 

     Sec. 1091. (1) The business court shall sit in the judicial

 

circuit where a circuit judge assigned to the business court sits,

 

unless otherwise determined by the state court administrator. The

 

state shall reimburse counties for the reasonable and actual costs

 

incurred for implementing jurisdictional duties in the business

 

court imposed on that county by this chapter.

 

     (2) Counties shall submit quarterly their itemized costs as

 

described in this section to the state court administrative office.

 

After determination by the state court administrator of the

 

reasonableness of the amount to be paid, payment shall be made

 

under the accounting laws of this state. Determination of

 

reasonableness by the state court administrator shall be

 

conclusive.

 

     (3) The clerk of the business court and its full-time

 

employees are employees of the circuit court in which the business

 

court clerk appointed under this chapter is employed.

 

     Sec. 1092. (1) An action commenced in the business court shall


 

be filed by electronic communications on the website described in

 

this section.

 

     (2) The supreme court shall establish a website to facilitate

 

all business court filings. All pleadings and motions shall be

 

filed in the business court by means of electronic communication.

 

The website shall do all of the following:

 

     (a) Permit the commencement of a suit in a region of the

 

business court described in section 1088.

 

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

 

the expertise, technology, and efficiency required by the

 

information age economy.

 

     (c) Establish a technology-rich system to serve the needs of a

 

judicial system operating in a global economy.

 

     (d) Maintain the integrity of the judicial system.

 

     (3) The practice and procedure of the business court not

 

otherwise governed by the provisions of this chapter 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. 1093. (1) An appeal from the business court shall be to

 

the court of appeals, as prescribed by supreme court rules.

 

     (2) The clerk of the business court shall immediately furnish

 

the parties to every action an electronic notice of entry of any

 

final order or judgment. The time within which an appeal as of

 

right may be taken shall be governed by supreme court rules

 

concerning appeals from the circuit court.

 

     Sec. 1094. The Michigan judicial institute shall provide


 

appropriate training for all circuit judges who are serving as

 

business court judges.

 

     Sec. 1095. The fees payable in civil actions in circuit court

 

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

 

law.

 

     Enacting section 1. This amendatory act takes effect January

 

1, 2013.