On September 1, 2024, Texas officially implemented its Business Court, joining approximately half of U.S. states that have established specialized business court systems.
The Texas Business Court is a statewide, specialized trial court designed to resolve complex business disputes. The court was created through House Bill 19, passed during the 88th Legislature, and supported by pro-business advocates. Its primary purpose is to alleviate congestion in the general court system while ensuring that business cases are heard by judges with the expertise necessary to handle intricate commercial disputes. By streamlining litigation processes, the court aims to save companies both time and money.
The Texas Association of Business has voiced strong support for the Business Court, emphasizing its potential to provide greater legal certainty for major corporations and Fortune 500 companies. Proponents argue that this development will enhance Texas’ appeal as a business-friendly state, increasing competition with jurisdictions like Delaware, which has long been a preferred venue for corporate legal matters.
Structure and Operations
The Texas Business Court is divided into 11 geographical divisions, five of which are currently operational. The remaining six divisions will be eliminated unless reauthorized and funded by the Texas Legislature during the 2025 legislative session. Each division is overseen by two judges appointed by the governor. Unlike Texas district courts, Business Court judges will issue written opinions, helping to establish a body of legal precedent for business disputes.
During the swearing-in of the Business Court justices, Texas Governor Greg Abbott, a former Texas Supreme Court justice, underscored the court’s importance, stating:
“We have to have a legal process system that will be able to address the inevitable challenges that will arise in such a massive context. It doesn’t mean it’s predetermined about who may win or who may lose.
“It’s just predetermined that you’ve got well-qualified judges who will make sure that cases will get the attention and the knowledge they deserve.”
Governor Abbott further reinforced the necessity of the Business Court by highlighting Texas’ economic prominence, noting that the state’s economy has surpassed those of several major countries, including Brazil, Italy, Russia, and Canada.
Jurisdiction and Case Removal
Any business-related action filed in a Texas district or county court after September 1, 2024, that falls within the jurisdiction of the Business Court may be removed to this specialized venue.
Current Operational Business Court Divisions
The following five divisions are currently active:
- First Business Court Division – Dallas
- Third Business Court Division – Austin
- Fourth Business Court Division – San Antonio
- Eighth Business Court Division – Fort Worth
- Eleventh Business Court Division – Houston
As Texas continues to refine its business litigation framework, the success of the Business Court will be closely monitored. If proven effective, the court could serve as a model for further expansion and refinement of commercial litigation practices in the state.