Daily Oklahoman (Oklahoma City, OK) | By Chad Kile | October 4, 2003
Companies want to conduct business in a stable and strong environment, which has prompted an Oklahoma legislator to propose the creation of a specialized court to handle complex business litigation.
Rep. Lance Cargill, R-Harrah, said the creation of a specialized court would help lure and nurture economic growth in the state.
"So much of what we do is about perception," he said. "If Oklahoma could get on the leading edge of this business court, we would look progressive - pro-business." Complicated business cases include intellectual property disputes, shareholder rights, or other issues not yet addressed by Oklahoma courts pertaining to business, Cargill said. Consumer safety and employee discrimination cases would remain in the general court system.
The House Republican Caucus met late last month and discussed adding the issue to the final agenda for the next legislative session, which begins in February, Cargill said. Interest is widespread within the party, with little opposition being voiced, Cargill said.
Cargill's initial proposal calls for pilot programs in Oklahoma and Tulsa counties, with expansion relying on success in the state's two most commerce-intense cities, Cargill said.
About a dozen business courts are already in existence across the country, primarily in the Northeast. Since Colorado is only examining the issue, Oklahoma would lead the region, Cargill said.
Few limitations on cases are planned, with judges most likely to be the sole determining figure in the outcome of cases, Cargill said. As business judges become more familiar with the nature of commerce disputes, decisions can be written as opinions to help guide future litigation - ultimately improving the courts' efficiency, said Ryan Wilson, a business attorney for Hartzog, Conger, Cason and Neville, an Oklahoma City law firm.
"When you have judges that are able to specialize in certain areas of the law, it leads to better and more consistent service," he said.
Wilson said a business court could ease the burden on civil court budgets, much like other specialized courts that handle family and drug cases.
Lee Applebaum, a commercial lawyer in Philadelphia, said improved productivity in states where business courts are already in place is evident. Before the mid-1990s creation of New York County's business court contract disposition took about 650 days, Applebaum said. The average time today is half that, taking only one year.
Having judges posses a strong mastery of complicated business concepts is crucial in developing a business court, said Eugene Kiser, a general contractor in Charlotte, N.C., whose case brought on by his former employer was among the first tried in North Carolina's business court.
Although Kiser lost in his dispute over sell-back provisions in stock purchases with a construction company, Kiser said business courts work, but officials must commit to the system for them to flourish.
"The idea is good if the state will fund it adequately and not leave them out to dry," he said.
Cargill said startup funding for an Oklahoma program would be an issue, but an overall better use of judicial funds could be seen in at least two years.
Proponents for a business court include The State Chamber, which considers the creation of the specialized plan part of the business and industry lobbying group's multifaceted, five-year economic growth strategy, said Richard Rush, president and chief executive officer of the association.
Reliable laws in Oklahoma will market the state to potential businesses unlike any other factor, Rush said.
"Oklahoma must compete in the global marketplace," he said. "If our laws in Oklahoma are not dependable, than businesses won't come to Oklahoma and will grow jobs. They'll go somewhere else."Daily Oklahoman (Oklahoma City, OK):
