News Summary
Governor Abbott has announced amendments to the Texas Business Court, aimed at broadening its authority and streamlining complex legal proceedings. The amount-in-controversy threshold has been reduced from $10 million to $5 million, making it easier for mid-sized businesses to pursue disputes. Additionally, the court will now handle a wider range of issues, including intellectual property and contracts. These changes are set to make Texas a more attractive venue for commercial litigation, encouraging companies to update their legal strategies in response.
Texas has announced significant legislative amendments to the structure and jurisdiction of the Texas Business Court, aimed at enhancing its authority and efficiency in handling complex commercial disputes. On June 21, 2025, Governor Abbott signed these amendments, which are set to take effect on September 1, 2025.
The key change involves reducing the amount-in-controversy threshold for most cases from $10 million to $5 million, allowing a wider range of business disputes to qualify for consideration in the Texas Business Court. Additionally, the amendments will permit businesses to aggregate claims from joined parties, including counterclaims and cross-claims, making it easier for various disputes to achieve this new threshold.
With the expanded jurisdiction, businesses can aggregate related transactions to meet the $5 million requirement. This change is expected to lead to a rise in the resolution of mid-sized and high-value cases, strengthening the court’s role as a specialized forum for commercial litigation.
The Texas Business Court’s jurisdiction has also broadened to incorporate a diverse range of disputes. This includes intellectual property cases such as patents, trade secrets, software, and biotechnology disputes. Furthermore, it will address business and commercial contracts, excluding insurance contracts, as well as violations of the Texas Finance Code or Business & Commerce Code by organizations or their officers.
An important addition to the court’s powers is the ability to enforce arbitration agreements, appoint arbitrators, and review arbitral awards within the scope of its subject-matter jurisdiction. This shift aims to encourage more filings within the Texas Business Court and reduce the tendency to transfer older cases into this newly structured forum.
Although there is a limited exception for transferring cases filed before September 1, 2024, based on mutual agreement among the parties and the court, the primary focus remains on ensuring that new and relevant cases are filed within the Texas Business Court.
As a result of these changes, Texas is positioning itself as an attractive venue for substantial commercial litigation, enhancing predictability in dispute resolutions for companies and investors alike. The court opened on September 1, 2024, and has already issued significant opinions that influence businesses operating within Texas.
Recent rulings from the Texas Business Court have clarified that well-pleaded allegations regarding corporate governance issues, such as alter ego, conspiracy, or derivative liability, may suffice for establishing jurisdiction. This breadth in jurisdiction reflects an evolving interpretation of the court’s authority, particularly concerning disputes about internal corporate affairs and fiduciary duties.
Furthermore, a series of opinions since the court’s inception are playing a pivotal role in shaping the legal landscape for fiduciary duties, assembling case law that is vital for the functioning of the court.
In light of these developments, businesses are encouraged to update their contracts and reassess litigation strategies to align with the new realities of the Texas Business Court. Given its specialization and the experienced judges available to expedite the resolution of complex disputes, the court should be considered as the primary venue for significant business-related issues.
As Texas continues to evolve in its legal frameworks, companies operating within its borders should stay informed about these changes to navigate potential disputes effectively and utilize the Texas Business Court’s resources to their advantage.
Deeper Dive: News & Info About This Topic
- JW: Insights on Texas Business Courts Structure & Jurisdiction
- Norton Rose Fulbright: Texas Business Court Jurisdiction
- Venable: Texas Business Courts Quarterly Update Q1 and Q2 2025
- Foley: Texas Legislature Strengthens Business Court
- Pillsbury: Bipartisan Passage of House Bill for Texas Business Court Jurisdiction
- Wikipedia: Texas Business Court
- Google Search: Texas Business Court
- Google Scholar: Texas Business Court
- Encyclopedia Britannica: Texas Business Court
- Google News: Texas Business Court
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos 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 Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
