SB-0333, As Passed House, June 20, 2017

SB-0333, As Passed Senate, May 16, 2017

SUBSTITUTE FOR

SENATE BILL NO. 333

     A bill to amend 1961 PA 236, entitled

"Revised judicature act of 1961,"

by amending sections 8031 and 8035 (MCL 600.8031 and 600.8035), as

added by 2012 PA 333.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 8031. (1) As used in this section to section 8047:

     (a) "Business court" means a special docket as described and

organized under section 8033 and administered as provided in this

section to section 8047.

     (b) "Business enterprise" means a sole proprietorship,

partnership, limited partnership, joint venture, limited liability

company, limited liability partnership, for-profit or not-for-

profit corporation or professional corporation, business trust,

real estate investment trust, or any other entity in which a

business may lawfully be conducted in the jurisdiction in which the

business is being conducted. Business enterprise does not include

an ecclesiastical or religious organization.

     (c) "Business or commercial dispute" means any of the

following:

     (i) An action in which all of the parties are business

enterprises, unless the only claims asserted are expressly excluded

under subsection (3).

     (ii) An action in which 1 or more of the parties is a business

enterprise and the other parties are its or their present or former

owners, managers, shareholders, members of a limited liability

company or a similar business organization, directors, officers,

agents, employees, suppliers, guarantors of a commercial loan, or

competitors, and the claims arise out of those relationships.

     (iii) An action in which 1 of the parties is a nonprofit

organization, and the claims arise out of that party's

organizational structure, governance, or finances.

     (iv) An action involving the sale, merger, purchase,

combination, dissolution, liquidation, organizational structure,

governance, or finances of a business enterprise.

     (2) Business or commercial disputes include, but are not

limited to, the following types of actions:

     (a) Those involving the sale, merger, purchase, combination,

dissolution, liquidation, organizational structure, governance, or

finances of a business enterprise.

(b) (a) Those involving information technology, software, or

website development, maintenance, or hosting.

(c) (b) Those involving the internal organization of business

entities and the rights or obligations of shareholders, partners,

members, owners, officers, directors, or managers.

(d) (c) Those arising out of contractual agreements or other

business dealings, including licensing, trade secret, intellectual

property, antitrust, securities, noncompete, nonsolicitation, and

confidentiality agreements if all available administrative remedies

are completely exhausted, including, but not limited to,

alternative dispute resolution processes prescribed in the

agreements.

(e) (d) Those arising out of commercial transactions,

including commercial bank transactions.

(f) (e) Those arising out of business or commercial insurance

policies.

(g) (f) Those involving commercial real property.

     (3) Notwithstanding subsections (1) and (2), business or

commercial disputes expressly exclude the following types of

actions:

     (a) Personal injury actions including, but not limited to,

wrongful death and malpractice actions.

     (b) Product liability actions in which any claimant is an

individual.

     (c) Matters within the jurisdiction of the family division of

circuit court.

     (d) Proceedings under the probate code of 1939, 1939 PA 288,

MCL 710.21 to 712A.32.712B.41.

     (e) Proceedings under the estates and protected individuals

code, 1998 PA 386, MCL 700.1101 to 700.8206.

     (f) Criminal matters.

     (g) Condemnation matters.

     (h) Appeals from lower courts or any administrative agency.

     (i) Proceedings to enforce judgments of any kind, including

supplementary hearings.

     (j) Landlord-tenant matters involving only residential

property.

     (k) Land contract, or mortgage, construction, and condominium

lien foreclosure matters involving residential property.and actions

involving the enforcement of condominium and homeowners

associations governing documents.

     (l) Motor vehicle insurance coverage under the insurance code

of 1956, 1956 PA 218, MCL 500.100 to 500.8302. , except where 2 or

more parties to the action are insurers as that term is defined

under section 106 of the insurance code of 1956, 1956 PA 218, MCL

500.106.

     (m) Insurance coverage disputes in which an insured or an

alleged insured is an individual consumer.

     (n) Employment discrimination.

     (o) Civil rights including, but not limited to, an action

brought under any of the following:

     (i) The Elliott-Larsen civil rights act, 1976 PA 453, MCL

37.2101 to 37.2804.

     (ii) The persons with disabilities civil rights act, 1976 PA

220, MCL 37.1101 to 37.1607.

     (iii) Chapter XXI of the Michigan penal code, 1931 PA 328, MCL

750.146 to 750.148.

     (p) Wrongful discharge, except for actions involving corporate

officers or directors.

     (q) Worker's compensation claims under the worker's disability

compensation act, 1969 PA 317, MCL 418.101 to 418.941.

     Sec. 8035. (1) A business court has jurisdiction over business

and commercial disputes in which the amount in controversy exceeds

$25,000.00.equitable or declaratory relief is sought or in which

the matter otherwise meets circuit court jurisdictional

requirements.

     (2) Venue of a suit in the business court is as provided in

chapter 16.

     (3) An action shall must be assigned to a business court if

all or part of the action includes a business or commercial

dispute. An action that involves a business or commercial dispute

that is filed in a court with a business docket shall must be

maintained in a business court although it also involves claims

that are not business or commercial disputes, including excluded

claims under section 8031(3).

     (4) An action shall must be assigned to a business court judge

by blind draw, unless the jurisdiction and venue of the case lies

in a county described in section 8033(2).

     (5) An action assigned to a business court judge may be

reassigned by blind draw to another judge as prescribed by the plan

submitted under section 8033(1) or (2), as applicable, if the

action ceases to include a business or commercial dispute.

     (6) An action that does not initially include a business or

Senate Bill No. 333 as amended June 20, 2017

commercial dispute but that subsequently includes a business or

commercial dispute as a result of a cross-claim, counterclaim,

third-party complaint, amendment, or any other modification of the

action shall must be reassigned by blind draw to a business court

after the action is modified to include a business or commercial

dispute as prescribed by the plan submitted under section 8033(1)

or (2), as applicable.

     (7) Upon motion of a party, the chief judge of the judicial

circuit may review assignments under subsections (3), (5), and (6).

The ruling of the chief judge under this subsection is not an order

that may be appealed under section 308.

[Enacting section 1. This amendatory act takes effect 90 days after the date it is enacted into law.]

     Enacting section [2]. This amendatory act applies to actions

commenced on or after the effective date of this amendatory act.