Each February, the North Carolina Administrative Office of the Courts publishes its Report on North Carolina Business Court. The Report includes data on case types, number of cases, pending motions, and average age, with comparisons to prior years. Here’s a quick recap of stats I found interesting:
New cases are up. New cases are up significantly with 138 new cases in 2024 compared to 101 in 2023. This means the number of pending cases is also up (206 vs. 189). Surprisingly few practitioners realize that Business Court Judges can be designated as 2.1 Judges too. Interestingly, 32 of the 206 active cases are “2.1 cases” designated to the Business Court by the Chief Justice. Overall, the upward trend reflects continued and well-placed trust in this forum, its structure, and its Judges.
Most cases involve closely held company disputes. More than a third of new Business Court cases involve questions of corporate and LLC law. (55 of 138). The next closest category is trade secrets (32). This is similar to prior years. In 2023, 42 of 101 new cases involved closely held companies, followed by trade secrets (17). This trend has led to a growing body of law on corporate and trade secret issues, adding certainty to these bitterest of business disputes.
88 Opinions and 75 Orders of Significance. These numbers are similar to 2023 (92 Opinions, 69 Orders of Significance). These rulings often involve issues of first impression and are discussed on this blog and others. Each of these rulings clarifies some issue, again adding to a growing body of law to guide future North Carolina litigants.
Five, then six Judges. At the beginning of 2024, there were five active Business Court Judges: Chief Judge Louis Bledsoe (Mecklenburg); Judge Michael L. Robinson (Wake); Judge Adam M. Conrad (Mecklenburg); Judge Julianna Theall Earp (Elon); and Judge Mark A. Davis (Wake). On December 20, 2024, Judge A Todd Brown (Mecklenburg) was sworn in, making six.
Then five, when Chief Judge Bledsoe retired. As our Ashley Barton Chandler previously blogged, Chief Judge Bledsoe retired effective January 1, 2025. As many have remarked on Judge Bledsoe’s LinkedIn page, we are all grateful for his service and the standard he maintained as Chief.
A new Chief Judge: Hon. Michael Robinson. Chief Justice Newby appointed Judge Robinson as the new Chief Judge, effective January 1, 2025.
Now six again, as Judge Matthew T. Houston joins the business court. On February 17, 2025, Chief Justice Newby appointed special superior court judge, Judge Matthew T. Houston as a Business Court Judge (Raleigh). Before joining the Business Court, Judge Houston has served as a special superior court judge in Wake County. Judge Houston makes six Business Court Judges again.
More about special superior court judgeships and designations as Business Court Judges. Judge Bledsoe’s retirement and the two recent additions caused me to take a closer look at exactly how judges are designated to the Business Court. I thought Business Court Judges were appointed by the Governor. That’s not exactly right. Here is what I learned.
Business Court Judges are designated by the Chief Justice from the pool of existing special superior court judges. G.S. § 7A-45.1(a11); G.S. § 7A-45.3. And with some recent legislation, this pool of special superior court judges got deeper. Prior to 2023, only the Governor had the power to nominate special superior court judges (with confirmation by the General Assembly). Since the Chief Justice can only designate Business Court Judges from the pool of special superior court judges and since the Governor populated the pool (again, with confirmation by the General Assembly), the Governor had the de facto power to appoint Business Court Judges. The number of Governor-appointed special superior court judges has gone up and down over the years and currently sits at 10.
In 2023, things changed. The General Assembly enacted SL 2023-134 (over Governor Cooper’s veto) giving the General Assembly power to also appoint 10 special superior court judges. In 2024, the General Assembly enacted SL 2024-57 giving it the power to appoint an additional two special superior court judges. Judge Houston was among the first SL 2023-134 General Assembly-appointed special superior court judges, taking the bench in Wake County on January 1, 2024. This recent legislation deepened the pool of special superior court judges from which the Chief Justice may designate Business Court Judges. This pool now includes appointees from both the Governor and the General Assembly. And, not that it matters for any reason other than trivia, I believe Judge Houston is the first legislature-appointed special superior court judge to be designated as a Business Court Judge. Civics.