Navigating the New Landscape: A Short Guide to the Texas Business Courts

Texas has officially opened its doors to a new specialized judicial system: the Texas Business Courts. Designed to handle complex commercial disputes, these courts aim to offer a more efficient, predictable, and expert forum for businesses navigating legal challenges in the Lone Star State.

The journey to specialized business courts in Texas culminated with the 88th Texas Legislature passing House Bill 19 (HB 19) in 2023. This landmark legislation was signed into law by Governor Greg Abbott on June 9, 2023, officially creating the Texas Business Courts.

While the law established eleven divisions across the state, the courts began accepting cases on September 1, 2024. This phased rollout allowed time for the appointment and confirmation of judges, and for the Supreme Court of Texas to adopt procedural rules. Currently, five divisions are operational:

• Dallas (First Business Court Division)
• Austin (Third Business Court Division)
• San Antonio (Fourth Business Court Division)
• Fort Worth (Eighth Business Court Division)
• Houston (Eleventh Business Court Division)

A statewide Business Court Clerk’s office is located in Austin and handles all filings. The remaining six divisions are slated to commence operations on September 1, 2026, contingent on future legislative action and funding.

A key feature of the Texas Business Courts is the appointment of judges with specific expertise in commercial law. Governor Greg Abbott appointed the inaugural judges to these five divisions, each serving two-year terms:

• First Business Court Division (Dallas): Judges Andrea Bouressa and William “Bill” Whitehill
• Third Business Court Division (Austin): Judges Melissa Andrews and Patrick K. Sweeten
• Fourth Business Court Division (San Antonio): Judges Marialyn Barnard and Stacy Sharp
• Eighth Business Court Division (Fort Worth): Judges Jerry Bullard and Brian Stagner
• Eleventh Business Court Division (Houston): Judges Sofia Adrogué and Grant Dorfman

These judges are required to have at least ten years of experience in complex civil business litigation, business transaction law, or as a civil court judge. Appeals from the Business Courts are heard by the newly created Fifteenth Court of Appeals, which also began operations on September 1, 2024, with Chief Justice Scott A. Brister, Justice Scott K. Field, and Justice April L. Farris appointed to its bench.

The Business Courts have concurrent jurisdiction with district courts over certain commercial disputes, generally those involving a high amount in controversy. Key areas of jurisdiction include:

• Corporate governance and derivative proceedings
• Breach of fiduciary duty actions
• Certain state and federal securities-related actions
• Actions arising out of the Business Organizations Code

Generally, a case must meet a $5 million amount-in-controversy threshold. However, this threshold is waived if one of the parties is a publicly traded company. The courts also have jurisdiction over certain “qualified transactions” (like contractual disputes) if the amount in controversy exceeds $10 million (or $5 million starting September 1, 2025, due to recent legislative changes).

It’s important to note that the Business Courts do not have jurisdiction over certain types of claims, such as personal injury, family law, or insurance contract disputes. They can, however, exercise supplemental jurisdiction over related claims if all parties and the judge agree.

• Written Opinions: Judges must issue written opinions for dispositive rulings and for issues important to Texas jurisprudence, contributing to a developing body of business law.
• Jury Trials: The right to a jury trial is preserved, though the venue for the trial may differ depending on whether the case was originally filed in or removed to the Business Court.
• Removal: Cases originally filed in Texas district or county courts may be removed to the Business Courts if they meet the jurisdictional criteria.

The Texas Business Courts represent a significant development in the state’s legal landscape. For businesses operating in Texas, understanding their jurisdiction, procedures, and strategic advantages is crucial for navigating complex commercial litigation effectively.