Texas Creates New Business Court: A Game-Changer for Commercial Litigation in the Lone Star State

Texas Creates New Business Court to Streamline Commercial Disputes

In a move to address criticisms of its slow, unpredictable, and costly legal system, Texas has enacted House Bill 19 (HB 19) to create a specialized business trial court known as the Texas Business Court (TBC). This new court aims to provide a faster, more efficient, and more cost-effective dispute resolution mechanism for businesses, changing the landscape of commercial litigation in the state.

The TBC will handle complex commercial disputes, streamlining the litigation process and providing a more specialized and tailored approach to handling business cases. With jurisdiction over matters involving corporate governance disputes, contract transactions, and injunctive relief actions exceeding $5 million in some cases, the TBC will offer a more efficient and effective forum for resolving commercial disputes.

Unlike traditional state trial judges, TBC judges will be appointed by the governor and required to have expertise in business law and commercial litigation. They will issue written opinions in cases, ensuring a stable body of precedent for Texas business law and providing businesses with more certainty and predictability in their legal proceedings.

The establishment of the TBC is expected to increase the number of commercial lawsuits filed in Texas, as businesses gain confidence in the revamped judicial system. By offering specialization, efficiency, and predictability, the TBC may attract more businesses to choose Texas as the preferred jurisdiction for their disputes, leading to a potential increase in lawsuits filed in the state.

Overall, the TBC represents a significant change in Texas law that will impact businesses and litigants for years to come, offering a more streamlined and effective approach to resolving complex commercial disputes in the state.