Bill > SF639

Introduced Session

This bill creates the business court of Iowa. The bill provides that the business court has jurisdiction over cases involving compensatory damages of $500,000 or more involving claims that arise from at least one of the following: technology licensing agreements; the internal affairs of business entities; breach of contract, fraud, misrepresentation, or statutory violations between businesses; shareholder derivative actions or commercial class actions; commercial bank transactions; trade secrets or noncompete agreements; commercial real estate disputes; antitrust or securities-related actions; or business tort claims. The bill sets forth provisions governing transfer, dismissal, retention, and removal of cases in the business court, and specifies that the procedure for appeals is the same as for proceedings in a district court. Removal of an action from the business court is not subject to rule of civil procedure 1.441 (time to move or plead). The bill requires the governor to appoint no fewer than two but not more than three judges to the business court from among nominees selected by the state judicial nominating commission and provides that if a vacancy occurs, the vacancy must also be filled following the same procedure. The bill allows the supreme court to appoint district court judges and senior judges as visiting judges of the business court and requires the state administrator or designee to assign one business court judge or visiting judge to preside over every action in the business court and a second judge to serve as settlement conference judge. The bill provides that a business court judge shall receive the same salary as a district court judge and further provides for the conditions of office of a business court judge. The bill creates directions for the jury practice and procedure in the business court, including venue of jury trials. The bill requires business court judges to produce written opinions to create a coherent body of law. A business court judge does not have to issue a written opinion if the court has a well-developed body of law on the issue, the court is applying precedent, or another opinion on the issue will not significantly contribute to the development of the body of law. The bill authorizes the court to appoint personnel necessary for operation of the court and creates a seal of the business court. The bill directs the supreme court to establish court rules as necessary for the operation of the business court. The bill takes effect September 1, 2025, and provides for the transfer of civil actions pending before that date to the business court by agreement of the parties.

AI Summary

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No sponsors listed

Other Sponsors (1)

Subcommittee recommends passage. (on 02/04/2026)

Official Document