OKPOLICY.ORG
It didn’t take long for a challenge to Gov. Kevin Stitt’s new business courts to be filed in the Oklahoma Supreme Court. The lawsuit, filed last week, asked the court to declare the law — which is scheduled to go into effect September 1 — unconstitutional on several grounds.
Senate Bill 632, authored by President Pro Tempore Lonnie Paxton and House Speaker Kyle Hilbert, creates two specialized courts with specific jurisdiction over business issues. These courts are to be divisions of the District Courts in Oklahoma and Tulsa Counties, though their jurisdiction would extend to cases arising in all 77 counties.
The creation of a new District Court with limited jurisdiction as outlined in SB 632 would seem to be in direct contravention of Article 7 Section 7 of the Oklahoma Constitution, which provides that “The District Court shall have unlimited original jurisdiction of all justiciable matters…”
Jurisdiction of the new business court is limited to cases involving various business statutes, but also certain breach of contract, fraud, and misrepresentation cases. It will also have jurisdiction over so-called “complex cases” such as ownership or control of a business, insurance coverage claims, construction defect claims, product liability claims, or mass tort claims. The bill excludes individual consumer claims involving a retail consumer of goods or services under certain circumstances.
SB 632’s judge selection provisions likely conflict with Article 7 Section 9 of the Oklahoma Constitution, which states “District Judges and Associate District Judges shall be elected by voters of the several respective districts or counties at a non-partisan election in the manner provided by statute.” However, SB 632 provides for the appointment of business court judges by the governor with the advice and consent of the Senate from a list of three nominees by the Speaker of the House.
According to news reports, the lawsuit challenging the business courts also alleges that SB 632 is a prohibited special law. Article 5 Section 59 of the Oklahoma Constitution provides that “Laws of a general nature shall have a uniform operation throughout the State, and where a general law can be made applicable, no special law shall be enacted.” Article 5 Section 46 prohibits certain kinds of special laws, including laws that provide for change of venue.
Finally, the lawsuit challenges the $1500 filing fee on the grounds that it serves as a barrier to access to the courts. Filing fees in other district court cases are about $200. Article 2 Section 6 of the Oklahoma Constitution states that “The courts of justice of the State shall be open to every person, and speedy and certain remedy afforded for every wrong and for every injury to person, property, or reputation…”
The lawsuit asks the Supreme Court to declare the new law unconstitutional and issue an injunction prohibiting appointment of the judges.
