Report Shows Growth and Trust in Iowa Business Specialty Court

The Iowa Business Specialty Court has seen a tremendous growth in cases in the last decade and a survey of participating attorneys found more than 95 percent reported that all parties were treated fairly, according to the first Iowa Business Specialty Court biannual review posted to the Iowa Judicial Branch website today. The report is available at https://www.iowacourts.gov/static/static/media/cms/Business_Court_Report_CY2223__FINAL_A822F47370611.pdf

“This report shows the business court is working as well or better than originally envisioned at its inception,” Iowa Supreme Court Justice Thomas Waterman said. “I was especially pleased to see that nearly all the participating attorneys surveyed said their business court judges treated parties fairly and with civility. These cases can be very difficult and, at times, contentious, so to have parties leave feeling the results were fair and they were treated with respect builds a strong foundation for the future of the program.”

Iowa’s business court connects parties with complex business cases with specially trained judges who have experience in handling complex business issues. The result is enhanced consistency, predictability, and accuracy of decisions with respect to complex business cases. The business court accepts a broad range of complex commercial cases with $200,000 or more in dispute. Any party may move for a case to be transferred to the business court. For each business court case, a primary business court judge is assigned to handle all litigation issues such as motions and the trial and a second business court judge is assigned to handle settlement negotiations.

In January 2022, the Iowa Supreme Court directed the state court administrator to conduct a biannual review to ensure that the business court continues to achieve its purpose and meet its goals. The report includes survey data for cases resolved in calendar year 2022 and 2023 and data collected during last half of calendar year 2021. Case data since the business court began is included in the report as well.

The business court began accepting qualifying cases in May 2013 as a pilot project to make Iowa’s civil justice system faster, less complicated, more affordable, and better equipped to handle complex disputes. Three years later, the business court became an ongoing part of the Iowa court system. Since its inception, the annual caseload has increased from eight cases in the first year to 47 in 2023. The number of business court judges has increased from three to eight with the increased caseload.

The supreme court selects business court judges based on their educational background, experience in the adjudication of complex commercial cases, and their desire to participate on the business court. Business court judges hear cases transferred to the business court in the counties where the cases are filed. While serving on the business court, the judges also retain their normal district court dockets.

The business court judges are: Judge Jeffrey D. Bert, Bettendorf; Judge Sarah E. Crane, Des Moines; Judge Rustin T. Davenport, Mason City; Judge Lawrence P. McLellan, Des Moines; Judge David W. Nelmark, Des Moines; Judge David P. Odekirk, Waterloo; Judge Michael J. Schilling, Burlington; and Judge John D. Telleen, LeClaire.

Business court cases must involve claims for compensatory damages totaling $200,000 or more or involve claims seeking primarily injunctive or declaratory relief. Business court cases must also include one of more of the following:

• Trade secrets, noncompete agreements, confidentiality agreements

• Anti-Trust or securities-related actions

• Internal business affairs

• Business tort claims

• Business transactions – e.g., breach of contract

• Shareholder derivative or commercial class actions

• Technology licensing agreements

• Commercial real property

• Commercial bank transactions

Additional information about the Iowa Business Specialty Court is on the Iowa Judicial Branch website at https://www.iowacourts.gov/iowa-courts/district-court/iowa-business-specialty-court/