Business Court Update – Supplemental Business Court Jurisdiction Over Individuals

As the use of Business Court expands, the issue of their jurisdiction continues to play out between those courts and practitioners. In a previous blog update, we discussed how Business Courts were taking supplemental jurisdiction over claims that were not, standing alone, Business Court claims. We are now seeing business courts doing the same with claims and parties that are not, standing alone, Business Court claims.
Under MCL 600.8305(3) claims that normally would not be within the Business Court’s jurisdiction will nevertheless be litigated in the Business Court if they are part of a lawsuit that involves a business or commercial dispute. For example, if a plaintiff brings a fraud action arising out of a business transaction between two business enterprises, that claim, standing alone, belongs in the Business Court as a business dispute between two business enterprises. But if the action also includes claims against the individual who made the false statements, that claim, standing alone, because it is a dispute between a business enterprise and an individual (not involving the internal operation of the business) would not be a claim subject to Business Court jurisdiction.
Our recent practice has demonstrated that Business Courts are asserting jurisdiction over these supplemental claims involving individuals. Thus, even where an action is filed naming an individual, if the claims also involve business claims between business enterprises, Business Courts are taking jurisdiction over the entire action.
To learn more, contact Leif Anderson directly at [email protected].