News Summary
Texas is set to transform its business litigation landscape with the passage of House Bill 40. This new law reduces the amount-in-controversy threshold for the Texas Business Court, allowing more complex cases and intellectual property claims to be addressed. Key reforms aim to streamline processes and improve court functionality, positioning Texas as a compelling alternative for corporate governance. The bipartisan support for this legislation underscores a commitment to fostering a favorable business environment, drawing attention to the impending changes as businesses prepare for a new era in the Texas legal landscape.
Texas has made significant strides in bolstering its business litigation framework with the passage of House Bill 40 (HB 40), which was signed into law by Governor Greg Abbott on June 20, 2025. Set to take effect on September 1, 2025, this legislation is aimed at expanding the jurisdiction and effectiveness of the Texas Business Court, thereby positioning Texas as a competitive alternative to other states like Delaware for complex business litigation.
The key provisions of HB 40 include a substantial reduction in the amount-in-controversy requirement for cases to qualify for the Business Court’s jurisdiction. The threshold has been lowered from $10 million to $5 million, allowing claim amounts to be aggregated from multiple joined parties, thereby making it easier for businesses to seek resolution for their disputes in this specialized court.
Another vital aspect of the new law is the explicit inclusion of intellectual property and trade secrets claims within the Business Court’s scope, which expands the types of cases that will now be heard here. This addition reflects the growing recognition of the importance of protecting intellectual property in today’s business environment.
The bill also clarifies the court’s authority in several other critical areas. It outlines the Business Court’s powers in enforcing arbitration agreements, determining the appropriate arbitrators, and reviewing arbitral awards. Such modifications are intended to streamline processes and ensure that businesses can rely on efficient procedures for settling disputes.
Accompanying these substantive changes are administrative reforms designed to enhance the operational efficiency of the Business Court. Notably, the legislation requires the Texas Supreme Court to adopt rules for timely jurisdictional determinations, thereby ensuring quicker access to justice for litigants.
These amendments are timely, coinciding with an increased scrutiny of Delaware’s Court of Chancery, a traditional hub for corporate litigation. As perceptions shift, Texas is actively positioning itself as an attractive venue for corporate governance and legal disputes, further reflected in HB 40’s changes.
Additionally, the law clarifies the Business Court’s concurrent jurisdiction with district courts, which aims to reduce confusion and provide predictability in legal proceedings. By outlining the interplay between these courts, the legislation helps streamline processes for corporate litigants navigating the legal landscape.
The passage of HB 40 signifies a strong commitment from the Texas Legislature to cultivate a favorable environment for business litigation, aiming to attract an influx of cases and bolstering the state’s judicial infrastructure for corporate matters. The law received bipartisan support, indicating a unified recognition of the importance of enhancing Texas’s status in the realm of business law.
With the impending implementation of HB 40, Texas businesses can anticipate improved access to legal remedies, more efficient resolution processes, and a court system that is better equipped to handle complex commercial disputes. As the effective date approaches, stakeholders in the business community are encouraged to familiarize themselves with the new provisions to leverage the expanded capabilities of the Texas Business Court.
Deeper Dive: News & Info About This Topic
- Pillsbury Law: Bipartisan Passage of House Bill to Expand Texas Business Court Jurisdiction
- Wikipedia: Texas Business Court
- Vinson & Elkins: Texas Business Courts Quarterly Update Q1 and Q2 2025
- Google Search: Texas Business Court
- Dykema: Can Texas Business Courts Handle More Cases?
- Encyclopedia Britannica: Legal System
- Foley & Lardner: Texas Legislature Strengthens Business Court
- Norton Rose Fulbright: Recent Removal Rulings Clarify Texas Business Courts’ Jurisdiction
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.
