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LEGAL NEWSLINE

Tuesday, November 5, 2024

Growth observed in Iowa Business Specialty Court over past decade

State Supreme Court
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Justice Dana Oxley | Iowa Judicial Branch Website

The Iowa Business Specialty Court has experienced significant growth in cases over the last decade, with a survey indicating that more than 95 percent of participating attorneys felt all parties were treated fairly. This finding is part of the first biannual review posted on the Iowa Judicial Branch website today. The report can be accessed at https://www.iowacourts.gov/static/static/media/cms/Business_Court_Report_CY2223__FINAL_A822F47370611.pdf.

“This report shows the business court is working as well or better than originally envisioned at its inception,” said Iowa Supreme Court Justice Thomas Waterman. “I was especially pleased to see that nearly all the participating attorneys surveyed said their business court judges treated parties fairly and with civility. These cases can be very difficult and, at times, contentious, so to have parties leave feeling the results were fair and they were treated with respect builds a strong foundation for the future of the program.”

Iowa’s business court connects parties involved in complex business cases with specially trained judges experienced in handling such issues. This system aims to enhance consistency, predictability, and accuracy in decisions related to complex business matters. The court accepts a broad range of commercial cases involving disputes of $200,000 or more. Any party can request a case transfer to this specialized court. For each case, a primary judge handles litigation issues like motions and trials while a secondary judge oversees settlement negotiations.

In January 2022, the Iowa Supreme Court mandated a biannual review by the state court administrator to ensure that the business court meets its objectives. The recent report includes survey data from cases resolved in 2022 and 2023 and data from late 2021. Historical case data since the inception of the business court are also included.

Launched as a pilot project in May 2013 to streamline Iowa's civil justice system, making it faster, less complicated, more affordable, and better equipped for complex disputes, the business court became permanent three years later. Its annual caseload has grown from eight cases initially to 47 in 2023; concurrently, the number of judges increased from three to eight.

Business court judges are selected based on their educational background, experience with complex commercial cases, and willingness to participate in this specialized division. They hear transferred cases within their respective counties while maintaining regular district court duties.

Current business court judges include: Judge Jeffrey D. Bert (Bettendorf), Judge Sarah E. Crane (Des Moines), Judge Rustin T. Davenport (Mason City), Judge Lawrence P. McLellan (Des Moines), Judge David W. Nelmark (Des Moines), Judge David P. Odekirk (Waterloo), Judge Michael J. Schilling (Burlington), and Judge John D. Telleen (LeClaire).

Eligible business court cases must involve claims for compensatory damages totaling $200,000 or more or primarily seek injunctive or declaratory relief and include one or more specific areas such as trade secrets or noncompete agreements; antitrust or securities-related actions; internal business affairs; business tort claims; breaches of contract; shareholder derivative actions; technology licensing agreements; commercial real property issues; or commercial bank transactions.

Further information about the Iowa Business Specialty Court is available on the Iowa Judicial Branch website at https://www.iowacourts.gov/iowa-courts/district-court/iowa-business-specialty-court/.

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