Oct. 8, 2024 – A 7-year pilot project that established circuit court dockets solely for large claim business and commercial cases in numerous counties will phase out,
under an order the Wisconsin Supreme Court issued Oct. 7, with three justices dissenting.
In 2017, under then-Chief Justice Patience Roggensack, the Wisconsin Supreme Court initially established the “commercial court docket,” or business court, as a temporary 3-year pilot project rolled out in eight counties – Brown, Door, Kewaunee, Marinette, Oconto, Outagamie, Waupaca and Waukesha.
The goals of the commercial docket were to: 1) improve the quality and predictability of justice in connection with business disputes; 2) improve parties’ access to justice; 3) make repeat disputes less likely to occur due to guidance provided by ongoing decisions; and 4) make Wisconsin a desirable forum for resolving business disputes.1
In 2020, the Supreme Court extended the pilot project another two years and expanded it to include Dane County, as well as the
14 northwestern counties within District Ten and the three counties within District Two (Walworth, Racine, and Kenosha).
In 2022, the Supreme Court extended the duration of the pilot project until July 30, 2024. Earlier this year, the Business Court Advisory Committee filed a petition (16-05E), asking the Supreme Court to extend the pilot project again until July 1, 2026.
The Wisconsin Supreme Court temporarily extended the pilot project beyond July 1, 2024, pending disposition of the Business Court Advisory Committee’s petition.
The Wisconsin Supreme Court solicited comments on petition 16-05E and held a public hearing Sept. 24, 2024. The court received numerous written comments from lawyers, judges, and organizations. Some supported extending the pilot project; but some opposed it, including seven judges (two retired).
Following the public hearing in September, the court held an open administrative conference and voted 4-3 to deny the petition and terminate the Business Court pilot project. The majority also barred the assignment of any future cases to the commercial docket pending a final order from the court.
Under the Supreme Court’s most recent order, no additional cases can be assigned to the commercial court docket, effective yesterday (Oct. 7). However, pending commercial court cases can continue until final disposition.
Three justices dissented from the order: Chief Justice Annette Ziegler, Justice Rebecca Bradley, and Justice Brian Hagedorn.
The Types of Cases that were Assigned to the Commercial Court Docket
Some commercial cases were required to be assigned to the commercial docket in counties participating in the Commercial Court Pilot Project. Those included:
Class Code 35001 – Internal Business Organizational Claims. Cases involving the governance or internal affairs of business organizations, including claims between or among owners or constituents of a business organization; claims against officers, directors, or managers of a business organization; claims involving the indemnity of owners, officers, directors, or managers of a business organization; claims involving the interpretation of the rights and obligations under the law governing the business organization, such as Wis. Stat. chapters 178, 179, 180, 181,183, 185, 214, 215, 221, 222, and 223 (or any similar statute or law from another jurisdiction); claims involving the interpretation of the rights and obligations under the agreements governing the business organization, such as the articles of incorporation, articles of organization, bylaws, operating agreements, membership agreement, or partnership agreement of the business organization;
Class Code 35002 – Prohibited Business Activity. Cases involving tortious or statutorily prohibited business activity, unfair competition, or antitrust, including claims under Wis. Stat. chapter 133; claims under Wis. Stat. section 100.30(5m) & (5r); claims under Wis. Stat. section 134.01; claims of tortious interference related to a business organization; claims involving restrictive covenants and agreements not to compete or solicit; claims involving confidentiality agreements;
Class Code 35003 – Business Sale/Consolidation/Merger. Cases involving the sale, consolidation, or merger of a business organization, conversion, share exchange, or the sale of substantially all of the assets of a business organization;
Class Code 35004 – Sale of Securities. Cases involving the sale of securities, including claims for securities fraud under Wis. Stat. chapter 551 or any similar statute or law from another jurisdiction;
Class Code 35005 – Intellectual Property Rights. Cases involving intellectual property rights, including claims to determine the use, ownership, or status of trademarks, trade secrets, or copyrights; claims under
Wis. Stat. section 134.90; claims involving any agreement relating to the licensing of any intellectual property right, including patent rights;
Class Code 35006 – Franchisor/Franchisee Claim. Cases involving the relationship between a franchisor and franchisee or similar distribution relationship, including claims arising from Wis. Stat. chapter 135 or any similar statute from another jurisdiction; claims arising from
Wis. Stat. section 134.93 or any similar statute or law from another jurisdiction; claims arising from Wis. Stat. chapter 553 or any similar statute from another jurisdiction; and
Class Code 35007 – UCC Claims Greater Than $100,000. Cases involving claims or disputes under Wis. Stat. chapters 402, 403, 404, 405 and 409 (or any similar statute or law from another jurisdiction, that is, the Uniform Commercial Code) when the amount in controversy exceeds $100,000 in damages, exclusive of interest, costs and attorney fees.
Class Code 35008 – Receiverships Greater Than $250,000. Cases involving receiverships in excess of $250,000.
Class Code 35009 – Arbitration award–confirm/compel/enforce. Cases involving confirmation of arbitration awards and compelling/enforcing arbitration awards.
Class Code 35010 – Commercial Real Estate Construction Greater Than $250,000. Cases involving commercial real estate construction disputes over $250,000.
Endnote
1 Hon. Michael Aprahamian, "The Need for Speed: Commercial Court Open for Business," Wis. Lawyer (Jan. 2018).
