September 5, 2025

Houston Gears Up for Historic Business Court Jury Trial

News Summary

Houston prepares for a landmark jury trial in the newly formed Texas Business Court, focusing on a $36 million dispute over plumbing issues in a medical office building. This trial marks a significant shift in Texas’s approach to business litigation, traditionally dominated by Delaware. With juries now empowered to decide outcomes, stakeholders hope this move will make Texas a more attractive venue for corporate legal matters. As the court takes on high-profile cases, all eyes will be on the trial’s outcome and its implications for Texas’s legal landscape.

Texas is gearing up for its first jury trial in its newly established business court, which is set to take place on October 27 in Houston. This landmark case involves a $36 million dispute concerning plumbing issues in a medical office building, and it represents a significant shift from the traditional judge-only system used in Delaware’s renowned business court. The Texas Business Court, which officially launched in September 2023, aims to attract corporations by allowing juries to deliberate on complex business cases, a feature that contrasts with Delaware’s judicial practices.

The proceedings mark a notable occasion as they will be the first time Texas’ business court has allowed a jury trial since its inception. Participants are optimistic about the new jury trial option. According to legal representatives, this trial format offers entities the choice of having their case heard by a jury, reinforcing the role of community perspectives in legal matters. In this context, Judge Grant Dorfman highlighted the value of having a jury assess witness credibility while allowing judges to concentrate on legal determinations.

In the Texas Business Court, any case can automatically proceed to a jury trial if requested by either party, although bench trials remain an option. The court also witnessed a strong initial performance, opening 185 cases in its first year, with one-third reaching resolution, including some that did not meet the court’s jurisdictional criteria. Notably, the Houston division of the court recorded the highest number of filings, establishing dominance over other divisions located in Dallas, San Antonio, Austin, and Fort Worth.

The energy sector significantly influenced the caseload in the Texas Business Court, contributing to over 25% of the cases filed there, reflecting the continuing importance of the oil and gas industry within the state despite the emergence of the technology sector. Prominent corporations like Pilot Travel Centers, Reynolds & Reynolds, AT&T, and EssilorLuxottica, alongside major oil firms such as BP and Marathon Oil, have engaged with the Texas Business Court since its inception. Interestingly, despite the jury trial option, Marathon Oil will proceed with a separate $17.4 million dispute scheduled for trial in November, as it previously waived its right to a jury trial.

While the Texas Business Court initiative has garnered state support, there remains skepticism surrounding high-stakes jury trials. Experts caution that jury verdicts often lack the legal guidance that judicial rulings provide, which could influence future legal precedents. Approximately half of the states in the U.S. offer specialized business courts, but Texas is specifically focusing on attracting corporations that currently favor the Delaware system.

Governmental endorsement plays a critical role in this initiative. Texas Governor Greg Abbott, alongside the state legislature, advocates for the business court as a means to lure businesses away from Delaware, culminating in companies such as Chevron and Professional Bull Riders Inc. repositioning their headquarters in Texas in 2024. The recent trend was notably influenced by a Delaware judge’s ruling against a $56 billion compensation package for Tesla, which prompted Elon Musk to transfer some business operations to Texas.

In addition to attracting businesses, recent legislative measures have facilitated the establishment of connections with the Texas business court, including provisions allowing corporations to limit derivative actions. However, the court faces operational challenges, particularly regarding the balance between available judges and the rising case load. The appointments of judges to the Texas business court depend on decisions from Governor Abbott, adding an element of uncertainty about their permanence.

As demand increases, the Texas Legislature will reconvene in 2025 and may consider allocating additional resources to the business court, ensuring it can adapt to the growing number of cases. The ongoing evolution of the Texas Business Court could redefine the landscape of business litigation in the state, particularly as it endeavours to navigate both challenges and opportunities in its inaugural jury trial and beyond.

Deeper Dive: News & Info About This Topic

Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.