Michigan House Bill HB4840

Michigan 2025-2026 Regular Session

• Introduced: 9/4/25
• Refer: 9/4/25

Caption

Courts: business court; types of cases heard by the business court; revise. Amends sec. 8031 of 1961 PA 236 (MCL 600.8031).

Impact

This bill directly impacts the way business disputes are adjudicated within the state, possibly reducing the backlog in courts by funneling business cases to a specialized court. It has the potential to expedite resolution times and reduce the costs associated with lengthy trials typical in general courts. By specifying the various types of disputes that fall under the remit of the business court, this bill encourages business owners and professionals to resolve their legal issues through a more appropriate venue that is tailored to their needs.

Summary

House Bill 4840 amends the Revised Judicature Act of 1961, specifically section 8031, to redefine and clarify the types of cases that the newly established business court will handle. The bill establishes a special court docket dedicated to resolving business-related disputes efficiently. This is seen as a significant move to improve the legal environment for business enterprises, including for-profit and non-profit entities. By delineating what constitutes a business or commercial dispute, the bill aims to streamline proceedings and ensure that business matters are addressed in a focused and specialized judicial setting.

Conclusion

Overall, HB4840 represents an effort to modernize the state’s judiciary in relation to business disputes. While it aims to provide clarity and efficiency, the discussions surrounding its implementation will be important to ensure that it serves all stakeholders in the business ecosystem equitably.

Contention

Despite the perceived benefits, there are points of contention regarding HB4840. Critics may argue that creating a separate business court could lead to preferential treatment for corporations over individual claimants, particularly in cases that involve consumer protection or employment matters. Additionally, whether these specialized procedures will adequately cover the diverse range of disputes that can arise in business contexts remains a concern. Ensuring that the court's scope does not undermine access to justice for smaller enterprises and individual litigants is crucial for maintaining equitable legal standards.