I would like to thank Utah State Senator Kirk Cullimore and Utah State Representative Brady Brammer for drafting the legislation that made the new Business and Chancery Court possible. As you may have seen, applications are now being accepted for the first judgeship of the Utah Business and Chancery Court. Applications are due on April 29, 2024.
The Business and Chancery Court legislation was a model of how legislation that impacts the courts should be drafted. Senator Cullimore and Representative Brammer put together a knowledgeable working group of business lawyers, representatives from the Utah State Bar, representatives of the courts, and a retired jurist (former Utah Supreme Court Justice Deno Himonas).
Over the course of a year, the working group studied legislation in other states like Delaware and Arizona, put together drafts of legislation, and talked about what Utah needed to serve the citizens of Utah. The Utah Bar Commission voted to support the legislation, which passed unanimously and was signed into law. Representative Brammer presented on the legislation at the Utah Bar’s Fall Forum. The result is a model that Utah can and should be proud of as a leader in protecting the interests of Utah businesses and their interests in the speedy and just resolution of complex business disputes.
Business and Chancery Court cases must have a minimum amount in controversy of $300,000 or seek equitable relief such as injunctive relief. The Court’s jurisdiction includes claims arising from contracts, fiduciary duty claims, internal business governance disputes, mergers and acquisitions, dissolution, asset sales, receiverships, indemnification of officers and directors, tortious interference claims, commercial insurance coverage disputes, the Uniform Commercial code, the Uniform Trade Secrets Act, misappropriation of trade secrets, non-competition litigation, non-solicitation litigation, franchise disputes, securities litigation, blockchain, antitrust and many other specified disputes. The statute also expressly excludes certain categories of cases.
The Business and Chancery Court must publish all final decisions and orders and must make all final decisions and orders public on the Utah Courts’ website. Representative Brammer explained in a House Judiciary Committee hearing that “[w]hen you publish orders, you gain consistency in predictability with how courts will handle things . . . [so] our businesses will be better able to . . . analyze risk.”
Business and Chancery Court cases will be tried before a single judge, both on the law and the facts. If a party wants a jury, the case must be transferred to a district court. The business and Chancery Court has statewide jurisdiction and will be located in Salt Lake City. The Court, however, “may perform any of the Business and Chancery Court’s functions in any location within the state.” The Business and Chancery Court also must provide the parties with a proposed ruling on each of their motions 48 hours before the day on which oral argument is held on the motions.
I look forward to practicing before the new Business and Chancery Court and encourage you to apply for the new judgeship. Application forms and instructions can be found here.
