August 9, 2025

New Changes in Texas Business Court

News Summary

The Texas Business Court has undergone significant changes, with the amount-in-controversy threshold lowered to $5 million, expanded jurisdiction for business disputes, and enhanced protections for corporate officers. These reforms aim to streamline processes, attract more businesses to Texas, and improve the overall legal landscape for companies operating in the state. The court’s focus on specialized judges and quick resolutions is expected to bolster Texas’s reputation as a business-friendly environment.

AUSTIN, Texas – The Texas Legislature has updated the jurisdiction and operations of the Texas Business Court to enhance commercial dispute resolution efforts. These amendments were signed into law by Governor Abbott on June 21, 2025, introducing significant changes aimed at making the court more accessible and efficient for businesses engaged in complex disputes.

The most notable adjustment includes a reduction of the amount-in-controversy threshold for claiming jurisdiction in the Texas Business Court from $10 million to $5 million for most cases. This change is expected to increase the number of business disputes eligible for resolution by this specialized court. Additionally, businesses are now permitted to aggregate claims in order to meet this $5 million threshold, simplifying the filing process for companies with related transactions or multiple claims.

Furthermore, the Texas Business Court has significantly broadened its jurisdiction, now encompassing a wider array of business disputes including issues related to intellectual property such as patents, trade secrets, software, and biotechnology. Claims arising from commercial contracts, investment transactions, and violations of the Texas Finance Code or the Business & Commerce Code by organizations or their officers are also now included, as long as the monetary threshold is satisfied.

In a move to streamline case management, the Texas Business Court is now equipped to handle disputes surrounding the enforcement of arbitration agreements, appointing arbitrators, and reviewing arbitral awards linked to matters under the court’s jurisdiction. This aims to provide companies with a more predictable legal environment in which to resolve their disputes.

Developments in the Texas Business Court system date back to September 1, 2024, when five of the eleven planned divisions opened for case filings in major cities, including Dallas, Austin, San Antonio, Fort Worth, and Houston. The structure is designed to separate high-stakes commercial litigation from general district court cases, thus enabling judges to focus better on complex business issues and enhancing overall efficiency.

The court’s filing requirements involve establishing jurisdiction based on a general monetary threshold ranging from $5 million to $10 million, depending on the nature of the case. Judges serving in the Texas Business Court possess expertise in complex business litigation, thereby improving the quality of decision-making within the court.

Important legislative changes include codifying the business judgment rule, which protects officers and directors from liability under certain conditions, and allowing businesses to waive their right to a jury trial. Additionally, companies are now able to designate exclusive forums for internal claims within their governing documents.

These amendments, encapsulated in legislative bills like SB 29, are part of Texas’ strategy to enhance its competitiveness as a venue for businesses, encouraging them to incorporate or reincorporate in the state. As other states, such as Delaware, face increasing judicial scrutiny, Texas is positioning itself as a more appealing jurisdiction for business operations.

The Texas Business Court also has the capacity to issue written opinions on dispositive motions, providing much-needed clarity on intricate commercial legal matters. These reforms are anticipated to facilitate quicker resolutions and bolster predictability in legal outcomes, positioning the Texas Business Court as a premier venue for significant commercial litigation.

As businesses navigate the complexities of commercial disputes, the structural improvements to the Texas Business Court represent a proactive approach by the Texas Legislature to foster a more favorable business environment in the state.