Indiana Commercial Court Pilot Project And Interim Rules

Yesterday, the Indiana Supreme Court issued interim rules related to Indiana's effort to form specialty commercial courts, about which I mentioned here in June and August of last year.  This program and these rules would apply to commercial foreclosures.   Click here for the rules.

One of our Firm's summer associates, Jedidiah Bressman, prepared a summary of the rules.  Thanks to Jedidiah for his contribution to my blog.

General Notes

There are six commercial courts handling specialized dockets of business cases.  The pilot project establishes these courts for business disputes in which parties agree to have their cases resolved:

• Allen Superior Civil Division Judge Craig Bobay;
• Elkhart Superior 2 Judge Stephen Bowers;
• Vanderburgh Superior Judge Richard D’Amour;
• Floyd Superior 3 Judge Maria Granger;
• Lake Superior Judge John Sedia; and
• Marion Superior Civil Division 1 Judge Heather Welch.

Commercial Courts employ and encourage electronic information technologies, such as e-filing, e-discovery, telephone/video conferencing, and employ early alternative dispute resolution interventions, as consistent with Indiana law.

Cases Eligible For Commercial Court Docket (CCD)

Any civil case, including any jury, non-jury case, TRO, injunction, restraining order, class action, declaratory judgment, or derivative action, shall be eligible for assignment into the CCD if the case relates to:

1. The formation, governance, dissolution, or liquidation of a business entity
2. Rights, obligations, liabilities, or indemnities of owners, shareholders, etc.
3. Agreements involving a business entity and an employee, member of the business entity, etc.
4.  Disputes between or among two or more business entities or individuals as to their business activities relating to contracts, transactions, or relationships between or among them, including without limited to:

a. Any transactions governed by the UCC, except for Consumer claims against business entities or insurers of business entities and Consumer Debts.
b. Cases relating or arising under antitrust laws.
c. Cases relating to securities or relating to or arising under securities laws.
d. Commercial insurance contracts, including coverage disputes.
e. Environmental claims arising from breach of contract or legal obligations or indemnities between business entities.
f. Cases with a gravamen substantially similar to the previous and not otherwise disallowed by Commercial Court Rule 3.
g. Subject to the acceptance of jurisdiction over the matter by the Commercial Court Judge, cases otherwise falling within the general intended purpose of the Commercial Court Docket wherein the parties agree to submit to the Commercial Court Docket.

Cases Not Eligible For CCD

1. Personal Injury;
2. Consumer Claims;
3. Matters involving only wages or hours, occupational health or safety, workers’ comp, or unemployment;
4. Any environmental claims not already established;
5. Eminent domain;
6. Any employment law cases not already established;
7. Discrimination cases based on federal or state constitutions;
8. Administrative agency, tax, zoning, and other appeals;
9. Petition Actions; strategizing;
10. Individual residential real estate disputes;
11. Any matter subject to the domestic relations, juvenile, or probate division of a court;
12. Any matter subject to the exclusive jurisdiction of a city court, a town court, or the small claims division of a court;
13. Any matter required by law to be heard in some other court or division of a court;
14. Any criminal matter, other than criminal contempt in connection with a matter pending on the Commercial Court Docket;
15. Consumer debts.

Steps To Get Into The CCD

1. If case is eligible and a party seeks to have the case assigned to the CCD, the attorney representing that party shall identify the case as a “CCD case” by filing with the clerk of the court a “Notice Identifying CCD Case” (“Identifying Notice”).
2. If a party does not consent a “Notice of Refusal to Consent to Commercial Court Docket: (“Refusal Notice”) must be filed within 30 days after service of the Identifying Notice; or 30 days after the date the non-consenting party first appears in the case.
3. If Identifying Notice is filed: (a) the clerk of court shall assign the case to the CCD, which assignment is deemed a provisional assignment; (b) if no Refusal Notice is timely filed by any party that has appeared in the case, the assignment of the case is deemed permanent; and (c) if a Refusal Notice is timely filed, the clerk shall transfer and assign the case to a non-CCD in accordance with applicable Rule.
4. If new trial is granted; or after remand is granted, the steps of getting into the CCD start over again.
5. The CCD judge has final say over whether a case is deemed appropriate for the CCD and can send a case back to a non-CCD in accordance with applicable rule. The judge’s determination shall not be subject to appeal.

General Notes About Getting Into CCD

1. This can be done at any time. (Of course, all parties must agree.)
2. This includes if a case becomes eligible for the CCD after a cross-claim, etc.
3. The Commercial Court Rules are limited to cases filed after June 1, 2016.  Cases already pending cannot be transferred.
4. Rule 4(C)(2) is the same as used in Trial Rule 3.1(B).