Wyoming Creates a New Chancery Court Which Will Hear Trust Cases

by Carol Warnick

Wyoming has created a chancery court which will be authorized to hear cases in fifteen (15) specific areas, including cases alleging breach of fiduciary duty and transactions governed by the Wyoming Uniform Trust Code, in addition to hearing business disputes.  This represents a significant change in the way many trust disputes, as well as business disputes, will be handled in Wyoming. 

Effective March 15, 2019, the special court of limited jurisdiction, called the Chancery Court of the State of Wyoming, was authorized to assist in the expeditious resolution of disputes involving commercial, business, trust and similar matters.  It is directed “to employ nonjury trials, alternative dispute resolution methods and limited motions practice and shall have broad authority to shape and expedite discovery as provided in the rules adopted by the supreme court to govern chancery courts.”  WYO. STAT § 5-13-115 (a). 

This new court will have jurisdiction to hear and decide actions where the amount in controversy exceeds fifty thousand dollars ($50,000) and fits within the fifteen specific areas specifically authorized by the act.  The enabling legislation authorizes the appointment of three chancery court judges who will have concurrent jurisdiction with all district court judges throughout the state of Wyoming, but only with regard to the types of disputes enumerated in the statute. 

The act requires the Wyoming Supreme Court to promulgate the rules of procedure for the new court.  For the initial start-up and until 2022, the act authorizes the Wyoming Supreme Court to assign active or retired district court judges or retired justices to sit as chancery court judges. After 2022, the Governor of Wyoming will appoint the chancery court judges after the judicial nominating commission provides three nominations for each position.  The locations of chambers and assignment of cases shall be prescribed by rules to be promulgated by the Wyoming Supreme Court. 

Qualifications for judges for the court require that they be experienced or knowledgeable in the subject matter jurisdiction of the chancery court.  This fact alone will give a totally different flavor to trust and business disputes in Wyoming.  Many district court judges come from a litigation, rather than a transactional, legal background and having judges who practiced in the transactional arena should make a significant difference to the effectiveness of the process and the ultimate outcome of the cases.