Nevada Business Courts

Nevada is one of fifteen states, including Delaware, that have specialized courts for business and complex litigation. The number of judges hearing business matters in Nevada is growing, which will allow the business courts to handle more cases. One of the benefits of business courts is that they can contribute to the development of a body of case law on business issues. Over time, the existence of a body of case law tends to contribute to increased predictability and consistency. However, to achieve these benefits, the body of case law must be accessible to business decision-makers and the lawyers who advise them. At present, as I will discuss in a future post, researching Nevada business cases is still an arduous and time consuming process compared to the ease of researching business cases in states with a longer history of business courts such as Delaware. Nevada has taken important steps in developing specialty business courts but there is still room for improvement when it comes to the ease of researching and access to case records and documents.



Southern Nevada
There are currently three business judges on the Eighth Judicial District Court, Judge Mark R. Denton (Dept. 13), Judge Elizabeth Gonzalez (Dept. 11), and Judge Kathleen Delaney (Dept. 25). Pursuant to Rule 1.61(c)(1) of the Eighth Judicial District's Rules of Practice, business court judges are designated by the Chief Judge. Business matters are randomly assigned to one of the business court judges. The business docket may include matters relating to Title 7 of the Nevada Revised Statutes (excluding Ch. 77) and matters where the amount in controversy exceeds $500,000 and relates to the Uniform Commercial Code, business torts, business franchises, or sale and purchase of businesses. (Rule 1.61(a))

The Eighth Judicial District Court is handling an increasing number of business cases. According to the Eighth Judicial District Annual Activity Reports:

Year....... Business Cases Filed .....% of All Civil Cases Filed
2008...................609.......................................2.2
2007...................404.......................................1.7
2006...................281........................................1.3
2005...................173........................................0.8
2004...................155........................................0.7
2003...................203........................................1.0
2002...................152........................................0.8
2001...................165........................................0.9

Northern Nevada
There are currently two business court judges on the Second Judicial District Court, Judge Brent Adams (Dept. 6) and Judge Patrick Flanagan (Dept. 7). Pursuant to Rule 2.1.5 of the Second Judicial District's Rules of Practice, business court judges are appointed for two-year terms by the Chief Judge and must have experience in business matters. If Judge Adams or Judge Flanagan is unable to preside over a matter for some reason, then the case may be assigned to one of the other business court judges on the Second Judicial District Court, Judge Steven P. Elliott (Dept. 10) or Judge Robert H. Perry (Dept. 9). Business matters are randomly assigned to one of the business court judges. The business docket may include corporate governance, trademark, and securities issues; shareholder suits, and disputes among business entities. (Rule 2.1.1)

I have not included statistics for Northern Nevada because the statistics section of the Second Judicial District Court's website, which includes the Annual Report of the Nevada Judiciary, is currently under construction.


Hat tip to:

• Michael Sommermeyer, the Court Information Officer for the Clark County Courts, for confirming the appointment of the newest business court judge in the Eighth Judicial District, Judge Kathleen Delaney, and
• Cindy Fladagar in the technology department of the Second Judicial District for clarifying the process for assigning cases to the business court judges.