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Public: Recent News

(Source: N.C. Business Court under cover letter from Judge Ben Tennille, Chief Special Superior Court Judge For Complex Business Cases)

The North Carolina Business Court is expanding to the east and the west. On Aug. 24, 2005, the General Assembly passed House Bill 650, which modified the way in which cases are assigned to the Court. At the same time the legislature appropriated money for a new business court location in the Mecklenburg County Courthouse currently under construction.

Responding to the legislation, Chief Justice I. Beverly Lake Jr. designated Judge John Jolly of Raleigh and Judge Albert Diaz of Charlotte to serve as Special Superior Court Judges for Complex Business Cases.

Judge Ben Tennille, who has served as Business Court Judge since the court’s inception, was designated as Chief Special Superior Court Judge for Complex Business Cases.

Funding has been allocated for a law clerk and facilities for the western expansion, which coincides with the construction of a new courthouse facility in Mecklenburg County. The new Mecklenburg courthouse is scheduled to open in December 2006. As yet, there has been no allocation of funds for the eastern expansion.

A Superior Court Judge since November 2001, Judge Diaz practiced law with Hunton & Williams from August 1995 to October 2001, handling general commercial litigation.

Before that, he served on active duty as a Marine Corps judge advocate, handling criminal cases at trial and at all levels of appeal, including the U.S. Supreme Court. Judge Diaz has remained in the Marine Corps reserves, serving for five years as a military trial judge and most recently as an appellate judge on the U.S. Navy-Marine Corps Court of Criminal Appeals.

He received his J.D. from New York University School of Law, his M.S. in business administration from Boston University, and his B.S. in economics from the University of Pennsylvania’s Wharton School.

Judge Jolly has been a Special Superior Court Judge since January 2001. Previously, he served in the same capacity from August 1979 to February 1982. He received his undergraduate degree from UNC-Chapel Hill in 1964 and his J.D. from the UNC School of Law in 1967. Since being admitted to the bar in 1967, except for his time on the bench, Judge Jolly practiced with Poyner & Spruill, with a focus on general civil and commercial litigation in both state and federal courts.

In addition to enlarging the number of judges sitting on the Court, the legislation retooled the manner in which cases are assigned to the Business Court.

Certain cases are now by definition designated mandatory complex business cases—those involving a material issue related to the law of corporations, securities law, antitrust law, state trademark and unfair competition law, and intellectual property law, and certain cases involving technology. There are no dollar limitations, and no waiver of jury trial is required.

One significant change brought about by the legislation is the process by which cases are assigned to the Business Court. After Jan. 1, 2006, any party to a new mandatory complex business case may have the case removed to the Business Court by filing a Notice of Designation.

The Notice of Designation must be filed in the Superior Court in which the action was filed. The Notice shall also be served on the opposing party or counsel and the Chief Special Superior Court Judge for Complex Business Cases simultaneously.

In addition, the Notice shall be sent to the Chief Justice of the Supreme Court by email or facsimile for preliminary approval. For presently pending cases, the old procedure of application for designation filed with the Senior Resident Superior Court Judge still applies.

The Notice of Designation must specify the basis of the designation and include a certificate on behalf of the party seeking removal that the case satisfies the criteria for a mandatory complex business case. If the removing party is the plaintiff or a third-party plaintiff, the Notice must be filed contemporaneously with the filing of complaint. Where an intervening party seeks removal, the Notice shall be filed at the time the motion for permission to intervene is filed.

Any other party seeking to remove the case must file a Notice of Designation within 30 days of receipt of service of the pleading seeking relief against that party.

Any party may oppose the removal by filing an opposition with the North Carolina Business Court within 30 days of being served with the Notice of Designation. It is the responsibility of the Chief Business Court Judge to determine that the case should not be designated a mandatory complex business case. That decision may be appealed to the Chief Justice of the Supreme Court.

Once a case is removed, it is sent to Judge Tennille for assignment to one of the three Business Court judges. From that point, all proceedings in that action will be before the Business Court Judge to whom the case has been assigned. Business Court judges will continue to try the cases in the county in which they are filed.

In the case of complex business or commercial litigation that does not fall within one of the mandatory categories, the old procedure for application to the Senior Resident Superior Court Judge will still apply. In all cases assigned, the present local rules for the Business Court will apply. Those rules are posted on the Business Court Web site.

The Local Rules Committee will review the Local Rules following implementation of the new procedures in January and make recommendations for changes in the rules to the judges. Any suggested changes in the Local Rules should be sent to Jim Fox, the Chairman of the Committee.

The new legislation also added an additional removal fee of two hundred dollars ($200) to be paid on filing the removal petition. The removal fee is non-refundable. The law, which was signed by Gov. Mike Easley on Sept. 22, becomes effective on Jan. 1, 2006, and applies to cases filed after that date.

Judges Diaz and Jolly are currently being assigned Business Court cases.

In August of 2006, Judge Tennille’s chambers will move to a new location in Greensboro in a building adjacent to the new Elon University School of Law. For more information about the North Carolina Business Court and its expansion or to view the final version of House Bill 650, visit the N.C. Business Court Web site.