Complex Business Litigation Track Created

On Nov 13, 2014

New Jersey Supreme Court Chief Justice Stuart Rabner announces that the Judiciary will launch the “Complex Business Litigation Program” effective January 1, 2015.  The new program will provide a forum for the resolution of complex business, commercial and construction cases that meet the $200,000 threshold amount for damages.

Creation of a “Complex Business Litigation Track,” previously referred to as a “business court,” is an important victory for New Jersey businesses. It will provide business litigants with prompt resolution of disputes with minimum disruption to business operations.

The New Jersey Business & Industry Association’s advocacy on this issue began in the Legislature more than a decade ago with efforts to create a business court, a pro-business innovation adopted by nearly every other state in the region.

“The business litigation program will foster a more favorable environment for New Jersey businesses, by ensuring fair and expedient treatment in the courts, when disputes arise,” NJBIA President Michele Siekerka said.  “This program will ensure prompt resolution for New Jersey’s business litigants and help keep business disruptions to a minimum.”

Last year, Chief Justice Rabner formed the “Working Group on Business Litigation” which recommended the program. Support from Senator Peter Barnes and Assemblyman David Russo was critical. Both served on the working group which was chaired by Bergen Vicinage Assignment Judge Peter E. Doyne.

The New Jersey Business & Industry Association (NJBIA) expresses its appreciation for the service of all the members of the Working Group, and in particular we would like to recognize David Kott of McCarter & English, the current Chairman of NJBIA’s Legal Affairs Committee and Philip Kirschner, who retired last spring as NJBIA’s President.

Key Elements of the Complex Business Litigation Program

• The expansion of a pilot program operating in the Bergen and Essex vicinages in which a single judge with experience in complex civil litigation oversees the resolution of each commercial matter from beginning to end.
• That each eligible case be identified early on and that arbitration or mediation be encouraged, but not required, of the parties.
• A party can make a motion for the removal of the case if the party believes it does not meet the criteria. Although cases in the program are not part of the Judiciary’s mandatory civil mediation and arbitration programs, the designated Complex Business Litigation Program judge in each vicinage will encourage the parties to engage in mediation when appropriate.
• The judge assigned to the program in each vicinage will receive additional training in relevant areas of the law, such as the Uniform Commercial Code, securities, anti-racketeering, and business valuation. They also will receive additional training in effective case and trial management, e-discovery, and other relevant topics. The list of assigned judges is below.
• Each participating judge will be expected to issue at least two written opinions annually, which will be posted at njcourts.com. Together with the previously posted business-related decisions, the opinions will comprise a substantial legal resource for the business community.

NJBIA worked closely with the New Jersey Bar Association and a number of business trade associations, as well as Assemblyman Russo, Senator Sarlo and Senator Buono in advocating on the issue. Recently, Senator Barnes was a staunch ally and worked tirelessly to create the Complex Business Litigation Program.

NJBIA applauds the creation of the Complex Business Litigation Track. This program will foster a more favorable environment for New Jersey businesses by ensuring fair and expedient treatment in the courts when disputes arise. New Jersey’s court system is laden with complex commercial and corporate issues that warrant a specialized court to effectively manage and resolve time-consuming and costly disputes. Court decisions not only affect the immediate litigants but also have a direct impact on shareholders, employees, creditors, suppliers, customers and clients.

The Complex Business Litigation Track will establish a core of experienced, knowledgeable judges who can efficiently and effectively manage business litigation. A continued concentration in business cases will enable judges to quickly grasp complex case facts and examine them within the broader legal context.

This action has the potential to lower costs for companies engaged in expensive and time-consuming litigation by expediting a prompt resolution and settlement. Further, it frees up judicial resources through greater efficiencies in case management, since knowledgeable and experienced judges will be able to render decisions more rapidly, thus providing scarce resources to areas where they are in the greatest demand.

The Complex Business Litigation Track will establish a predictable body of law that can provide guidance to the business and legal communities. Establishing legal precedent will improve the quality and consistency in business and commercial litigation, and contribute to an efficient and experienced court.

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