These days, more legal tussles in North Carolina are ending up in its burgeoning Business Court, according to Wilmington attorney W. Cory Reiss, who practices with the firm of Shipman & Wright LLP.

Reiss, who has a lawsuit that’s making its way through Business Court, said that everything about the Business Court is expanding: its case load, its number of judges and the distinct body of law that the special court is creating through the judges’ decisions.

Founded in 1996 in Greensboro with one judge, the N.C. Business Court now has locations in Charlotte and Raleigh, each with its own judge. Although New Hanover County does not host a Business Court, the county has the fourth-largest number of such cases, Reiss said.

Earlier this year, Gov. Pat McCrory nominated Mike Robinson, an attorney in Forsyth County, to serve as a fourth Business Court judge. Robinson, who must still be confirmed by the General Assembly, will likely be assigned to one of the existing court locations, observers say.

There are several reasons for the growth of Business Court, said Wilmington attorney Justin Humphries, a partner in the firm of Humphries & King. One is that the General Assembly, in passing Senate Bill 853 last summer, changed the jurisdictional statutes to require that certain types of cases be brought before the Business Court and expanded the definition of “complex case” to allow the court’s hearing of a number of other disputes, such as those involving trade secrets and contracts. The state budget also allows for the addition of that fourth – and potentially a fifth – Business Court judge.

Another driver of growth stems from the nature of the court itself, Humphries said.

“Many lawyers prefer practicing before the business courts because they ensure that one judge with specialized business experience will be assigned to their case,” he said. “Our Superior Court system provides for rotating judges, which does not always provide for the same level of consistency. The Business Court also has a convenient electronic filing system similar to what is used in federal court.”

Superior Court is not always the best place to try a business case, Reiss said.

“Judges cycle through; there’s no dedicated judge,” he said, explaining that means that each time a case comes back up in Superior Court, a different judge might preside. “Business Court was created to handle complex business cases, and you could designate and send a case to [it], and the same judge would follow the case except in unusual circumstances.”

North Carolina’s Business Court judges are appointed, and they preside over the development of what Reiss calls a “different track” in the legal system. For one thing, he noted, they are required to issue a written opinion on every case they hear, unlike Superior Court judges, who simply report their opinion.

“Business Court is generating a growing body of law on its own. Business Court judges can look at each others’ opinions although they are not bound by them,” Reiss said. “This creates a parallel body of law. And a Business Court decision can be appealed directly to [the] N.C.  Supreme Court, bypassing the Court of Appeals.”

In an article published in Elon University School of Law’s 2013 annual report, Reid Phillips, a commercial litigation attorney with Brooks, Pierce, McLendon, Humphrey & Leonard LLP, cited several advantages of trying cases in Business Court.

“Through its experienced judges and staff, the Business Court manages complicated business disputes more efficiently and delivers more consistent results than would be possible under the traditional North Carolina system of rotating Superior Court judges who must adjudicate all types of civil and criminal matters and who work without law clerks,” he wrote. “Because the Business Court has written opinions on all matters of substance since it was founded … North Carolina now has an expanded body of case law on business issues. This is quite valuable to lawyers when advising their business clients.”

Reiss, too, has been impressed with its efficiency and consistency. 

“It’s nice to walk into court and [see that] the judge has read the brief,” he said. “The cases I’ve had in Charlotte and Raleigh have been made fairly quickly. Sometimes in Superior Court they can take a couple of months. A lot of things can be done electronically without a hearing too.”

With the new legislation allowing or requiring more cases in Business Court, will the court be able to maintain its crisp pace, and will judges continue to become thoroughly knowledgeable about the matters that come before them?

Tom Molony, a professor at Elon University School of Law, said he is cautiously optimistic.

“I would expect it will create a greater burden on the court, and there is also the written opinion requirement,” which slows things down, he said.

But he pointed out that because the same judge follows a case from start to finish in Business Court, the judge doesn’t have to get up to speed on cases on the docket every time he or she rotates onto the bench, as in Superior Court.

“My impression is that the Business Court is working more quickly of late,” he said.

Molony sees North Carolina’s growing body of business case law as an important factor in economic development, noting that many businesses incorporate in Delaware because of that state’s clear body of business law. North Carolina could do the same, he said.

“Hopefully, that direct line from Business Court to the [N.C.] Supreme Court, allowing them to weigh in on these issues, will establish clear laws and encourage people to form their businesses here,” he said.

On April 3, following the news of Robinson’s nomination to the Business Court bench, Molony posted an opinion piece on the Elon law school website.

“With Governor Pat McCrory’s nomination last week of Mike Robinson to serve as the State’s fourth Business Court judge, North Carolina has taken another important step toward making the State a more attractive place for business formation,” he wrote.

Referring to the actions of the General Assembly in authorizing more judges, widening the court’s jurisdiction and providing a Supreme Court fast track for appeals, he said “all of these measures should facilitate the creation of a robust body of case law that will offer outcome predictability, which is an important factor in deciding where to form a business.

“The nomination of a fourth Business Court judge is promising news for this process, and if the State soon can find room in its budget for a fifth judge,” Molony said, “it will demonstrate a real commitment to being business-friendly.”