Weather Data Source: weather in Texas

Big Changes Coming to the Texas Business Court

Article Sponsored by:

Want to target the right audience? Sponsor our site and choose your specific industry to connect with a relevant audience.

What Sponsors Receive:
Prominent brand mentions across targeted, industry-focused articles
High-visibility placements that speak directly to an engaged local audience
Guaranteed coverage that maximizes exposure and reinforces your brand presence
Interested in seeing what sponsored content looks like on our platform?
Browse Examples of Sponsored News and Articles:
May’s Roofing & Contracting
Forwal Construction
NSC Clips
Real Internet Sales
Suited
Florida4Golf
Click the button below to sponsor our articles:
Texas Business Court Changes

News Summary

The Texas Legislature has made significant adjustments to the Texas Business Court, lowering the threshold for cases from $10 million to $5 million. This change, part of House Bill 40, aims to enhance access for mid-size businesses and streamline complex proceedings. Additionally, the court will have expanded jurisdiction over various disputes, including intellectual property, and will strengthen enforcement of arbitration agreements. These reforms are set to position Texas as a leading venue for commercial litigation, benefiting business owners and stakeholders alike.

Texas has enacted significant changes to the jurisdiction and authority of the Texas Business Court with the passage of House Bill 40 (HB 40), signed by Governor Abbott on June 20, 2025. The newly established amendments will come into force on September 1, 2025, and are designed to facilitate corporate disputes and streamline complex legal proceedings.

One of the most notable adjustments made by the new law is the reduction of the amount-in-controversy threshold for most cases, which has been lowered from $10 million to $5 million. This change allows a broader range of business disputes to be heard in the Texas Business Court. Furthermore, the court now allows the aggregation of total claims, including both counterclaims and cross-claims, enhancing the scope of its jurisdiction.

The updated regulations enable parties involved in a series of related transactions to aggregate their claims to meet the new $5 million minimum threshold. This is expected to encourage more businesses to utilize the Texas Business Court for their legal disputes, particularly those that involve financial stakes that can now be combined to reach the required amount.

In addition, the jurisdiction of the Texas Business Court has been expanded to encompass a variety of intellectual property disputes, including those related to patents, trade secrets, software, data security, and biotechnology. This broadened scope marks a significant shift, further positioning Texas as a competitive forum for resolving high-stakes corporate litigation.

Moreover, the court is now authorized to oversee business, commercial, and investment contracts or transactions—excluding insurance contracts—if the involved parties consent to the court’s jurisdiction. This flexibility increases the court’s appeal for corporate entities seeking a reliable legal venue in Texas.

The amendments also grant the Texas Business Court the authority to enforce arbitration agreements, appoint arbitrators, and review arbitral awards concerning relevant cases. Such capabilities are intended to strengthen the court’s role in resolving disputes efficiently and effectively, making it a streamlined option for businesses engaged in arbitration.

To facilitate and expedite court processes, the Texas Supreme Court is instructed to establish rules governing jurisdictional determinations within the Texas Business Court. These measures aim to promote efficiency and consistency when adjudicating high-value business disputes.

The reforms introduced through HB 40 are anticipated to lead to an increase in litigation filings within the Texas Business Court. Legal and business stakeholders who supported these reforms expect that the court will become a preferred venue for mid-size and high-value cases alike. This aligns with Texas’s goal of becoming a premier state for business incorporation, drawing parallels to the well-regarded Delaware Court of Chancery.

The enhancements brought about by HB 40 reflect a commitment to consolidating the Texas Business Court’s status as a leading forum for commercial litigation. Through these clarifying reforms, Texas aims to create a conducive environment for businesses, bolstering its reputation as a serious contender in the corporate legal landscape.

As the business environment continues to evolve, these changes position the Texas Business Court as a proactive solution for corporations facing complex legal challenges, establishing clearer pathways for dispute resolution and instilling confidence in the judicial process.

Deeper Dive: News & Info About This Topic

STAFF HERE GEORGETOWN
Author: STAFF HERE GEORGETOWN

About the HERE Georgetown Staff Writers The HERE Georgetown Staff Writers are a dedicated team of local journalists and contributors focused on delivering accurate, timely news to the Georgetown, SC community. As part of the HEREcity.com Network—which powers over 100 U.S. city sites including HEREcolumbia.com—we cover everything from waterfront development and small business news to dining and local culture. Local Expertise Our team includes lifelong Georgetown residents and South Carolina natives with deep knowledge of the region’s history, economy, and coastal identity. We’ve reported on topics like Front Street revitalization, maritime heritage, and local education initiatives. Trusted Journalism With decades of combined experience, we prioritize fact-based reporting, drawing from city records, chamber data, and community voices. Every article is a team effort, researched and verified to meet high editorial standards.

ADD MORE INFORMATION OR CONTRIBUTE TO OUR ARTICLE CLICK HERE!
Article Sponsored by:

Want to target the right audience? Sponsor our site and choose your specific industry to connect with a relevant audience.

What Sponsors Receive:
Prominent brand mentions across targeted, industry-focused articles
High-visibility placements that speak directly to an engaged local audience
Guaranteed coverage that maximizes exposure and reinforces your brand presence
Interested in seeing what sponsored content looks like on our platform?
Browse Examples of Sponsored News and Articles:
May’s Roofing & Contracting
Forwal Construction
NSC Clips
Real Internet Sales
Suited
Florida4Golf
Click the button below to sponsor our articles:

Construction Management Software for Contractors in Georgetown, SC

In Georgetown, SC, CMiC offers construction management software that optimizes job site efficiency and financial performance. With integrated solutions for workforce planning, material tracking, and contract management, contractors in Georgetown can reduce project risks while improving profitability.

Learn More about CMiC’s offerings here. 

Stay Connected

More Updates

A landscape depicting the effects of a severe heatwave in the United States, with visible heat distortion and dry terrain.

Major Heatwave Hits 185 Million Americans

News Summary A significant heatwave has enveloped the eastern half of the United States, affecting over 185 million individuals with severe heat warnings. The heat

Would You Like To Add Your Business?

Sign Up Now and get your local business listed!