Business Litigation in Kentucky: Courts, Deadlines and LLC Disputes
A Kentucky business dispute turns on three early questions: which court, how long you have, and whether the claim belongs to you or to the company. In Louisville there is a fourth, because the Supreme Court of Kentucky authorized a Business Court Docket in Jefferson Circuit Court.
William J. Brown, our Managing Partner, is admitted in Kentucky and before the U.S. District Court for the Eastern District of Kentucky.
The Jefferson Business Court Docket, LLC claims and limitations periods
Commercial cases belong in Circuit Court, the court of general jurisdiction (KRS 23A.010); District Court's exclusive jurisdiction ends at $5,000 (KRS 24A.120). In Jefferson County, Supreme Court Order 2023-15 sets the rules for the Business Court Docket, which that order still calls a pilot project. Eligible disputes include contract claims involving a business entity, business torts, owner and fiduciary disputes, non-compete and trade secret cases, and commercial real estate; individual consumer and residential matters are excluded (BCR 2.1, 2.2). The plaintiff designates the case in the caption, and a defendant gets a five-page objection that does not stay the response deadline (BCR 3.1).
LLC disputes follow KRS chapter 275. A member sues directly only if the member can prevail without showing injury to the company. A derivative claim requires a demand on the other members or managers, or futility, pleaded with particularity, in the Circuit Court for the county of the registered office. A court can make a plaintiff who sued without reasonable cause pay the defendants' fees (KRS 275.337). Dissolution requires showing the business cannot reasonably be carried on under the operating agreement (KRS 275.290).
Contract deadlines turn on when and how the contract was made. A written contract executed after July 15, 2014 carries 10 years (KRS 413.160); earlier written contracts carry 15 (KRS 413.090). Oral contracts and fraud claims carry 5 (KRS 413.120). Punitive damages are barred for breach of contract and elsewhere require clear and convincing proof of oppression, fraud or malice (KRS 411.184).
Contract Disputes
Written and oral contract claims, with the correct limitation period fixed before filing.
LLC Member Disputes
Direct and derivative claims under KRS 275.337, and judicial dissolution.
Business Court Docket Strategy
Whether a Jefferson County case fits BCR 2.1, and whether to designate or oppose assignment.
Forum and Pre-Suit Review
Choosing between Circuit Court and federal court, and demand letters with the limitations clock in view.
Does Kentucky have a business court?
In Jefferson County, yes. The Supreme Court of Kentucky authorized a Business Court Docket in Jefferson Circuit Court under rules in Order 2023-15, which still describes it as a pilot project. It covers only matters with proper venue there.
How long do I have to sue for breach of contract in Kentucky?
10 years on a written contract executed after July 15, 2014 (KRS 413.160), 15 on an earlier one (KRS 413.090), and 5 on an oral contract or fraud claim (KRS 413.120). Check the execution date first.
Can an LLC member sue another member in Kentucky?
Yes, directly if the member can prevail without proving harm to the company, or derivatively after a demand or a showing of futility, in the Circuit Court for the county of the registered office (KRS 275.337).
Can I recover punitive damages in a Kentucky contract case?
No. Kentucky bars them for breach of contract (KRS 411.184(4)). In business torts they require clear and convincing proof of oppression, fraud or malice.
Facing a business dispute in Kentucky?
The first consultation is confidential, and we respond within one business day.