Iowa Business Specialty Court Becomes Permanent

Iowa officially launched its stand-alone Business Specialty Court on September 1st. The launch marks an exciting new chapter for the state’s specialized business litigation forum. Senate File 639 made the Business Court permanent. The court aims to resolve complex commercial and business disputes more quickly.

Primary Aims of the Iowa Business Court: Efficiency and Cost Savings

Above all, the Iowa Business Specialty Court aims to move complex commercial cases through the court system more quickly. Consequently, this approach lowers costs for litigants and the court system.

The court’s specific goals benefit several groups:

• For Businesses and Attorneys: First, judges with business litigation experience handle these cases. In turn, their expertise promotes greater consistency, predictability, and accuracy in complex business decisions.

• For the General Court System: Second, moving time-consuming, complex business cases off the general docket benefits nonbusiness case dockets. In addition, business court judges share their specialized expertise with district court judges statewide.

• For All Iowans: Finally, a more attractive and cost-effective forum benefits all Iowans. Moreover, the business court tests innovative practices that other courts may adopt.

Eligibility Requirements for the Iowa Business Specialty Court

Generally, eligible cases must seek at least $200,000 in compensatory damages. Alternatively, cases that primarily seek injunctive or declaratory relief may also qualify. In either instance, however, the case must satisfy at least one of the following criteria:

• For example, arise from a technology licensing agreement, including one involving software or biotechnology. Similarly, agreements licensing intellectual property rights, including patent rights, also qualify.

• Also, relate to a business’s internal affairs or the rights and obligations of its participants. Specifically, this includes liability or indemnity disputes involving participants, officers, directors, managers, trustees, or partners.

• Involve claims of breach of contract, fraud, misrepresentation, or statutory violations between businesses arising out of business transactions or relationships.

• Be a shareholder derivative or commercial class action.

• Arise from commercial bank transactions.

• Relate to trade secrets, noncompete, nonsolicitation, or confidentiality agreements.

• Involve commercial real property disputes other than residential landlord-tenant disputes and foreclosures.

• Be a trade secrets, antitrust, or securities-related action.

• Additionally, involve business tort claims between two or more businesses or individuals. In that case, the claims must concern their business or investment contracts, transactions, or relationships.

How to Transfer Complex Commercial Disputes to the Business Court