What You Should Know About Arizona’s Commercial Court

Several U.S. states have established specialized business courts to resolve complex commercial disputes efficiently and cost-effectively. In Arizona, the state’s business court is a dedicated division of the Maricopa County Superior Court in Phoenix. The Commercial Court is designed to handle high-stakes disputes between businesses. It is staffed by three judges with backgrounds in commercial litigation.

Once a case is venued in Maricopa County, the Commercial Court has statewide jurisdiction. Venue can be based on several factors, such as where the defendant resides or conducts business; where the property at issue is located; or where events gave rise to the claim (e.g. contract negotiation or breach). Also, a contract’s forum-selection clause can provide for resolving disputes in Maricopa County. 

According to Arizona Rules of Civil Procedure 8.1, a case is assigned to the Commercial Court when a party designates the case as a “commercial case” at filing or the Superior Court’s civil-case administrator reviews the pleadings and determines that the case meets the definition of a commercial case.

A commercial case is one that satisfies any of the following criteria:

• At least one plaintiff and one defendant are business organizations.
• The primary issues to be decided center on a business organization.
• The primary factual and legal issues concern a business contract or transaction.

Rule 8.1 rule defines “business organization” broadly, covering corporations, limited liability companies (LLCs), partnerships and similar entities. This inclusive approach means that a significant variety of business litigants and disputes fall within the Commercial Court’s purview.

Cases assigned to the Commercial Court often involve specialized legal and factual issues that benefit from the court’s deep expertise. These are examples:

• Contract disputes between businesses
• Internal governance battles within companies
• Disputes over commercial real estate and financing
• Claims of business torts such as fraud or misrepresentation
• Cases involving complex commercial agreements and transactions

The Commercial Court exercises active judicial management, with ongoing oversight from start to finish. The judge assigned holds a scheduling conference to map out the litigation, identify the key issues and set deadlines. The judge issues a detailed case management order that covers discovery phases, motion practice, expert disclosures and status checks to minimize drift and delay. Regular status conferences are held so that any issues are addressed quickly and the court may encourage early mediation. If no settlement is reached, the case is tried before a judge or jury, depending on the claims.

Given the specialized nature of Commercial Court litigation, it’s wise for any business involved in such a dispute to consult with an experienced in Arizona business litigation attorney. Skilled counsel can comply with the Commercial Court’s procedures and maximize the opportunity for favorable outcome.

At the Law Offices of Donald W. Hudspeth P.C. in Phoenix, we have deep experience in business litigation, which enables us to control costs and resolve disputes in a timely manner. To schedule a consultation, call us at 866-696-2033 or contact us online.