News Summary
Texas lawmakers are making significant changes to the state’s business courts after only a short period since their establishment. A new compromise bill, which has received bipartisan support, will lower the threshold for cases and broaden the court’s jurisdiction. While expansion plans were stalled, this move is seen as beneficial for easing access to business-related legal disputes. The evolution of Texas’s business court system is being closely monitored, with additional legislative efforts anticipated in the near future.
Texas lawmakers have decided not to expand the state’s newly established business court system, but they will make some modifications aimed at enhancing its efficiency. The alterations include lowering the amount-in-controversy threshold for cases filed in business courts from $10 million to $5 million. This decision follows a compromise reached between the Texas House and Senate, with a bill now set to be sent to Governor Greg Abbott for approval.
The Texas Senate made changes to a House proposal that aimed to broaden the business court’s jurisdiction during the final days of the legislative session. The House had previously passed House Bill 40 (HB 40) on May 13, 2025, with a bipartisan vote of 99-40. Although the bill seeks to expand the types of cases that the business court can handle, it does not authorize further expansion into new cities or an increase in judges for the busier court venues.
If the governor signs HB 40 into law, the changes are slated to take effect on September 1, 2025, unless a two-thirds majority in both chambers votes for immediate implementation. The bipartisan nature of the support in the House signifies a collective acknowledgment of the need for reform in the state’s business court system.
The first 100 days of the Texas Business Court saw 53 cases filed, with the Eleventh Division in Houston being identified as the busiest. To date, the court has closed eleven cases, with a notable portion—approximately one-third—of these filings being removals from Texas district courts pending before September 1, 2024. In a significant ruling, five of ten judges determined that cases filed prior to this date are not eligible for removal to the business court, resulting in at least eight cases being remanded back to district courts. Additionally, two appeals related to these decisions have been initiated in the Fifteenth Court of Appeals.
So far, the business court has not issued many rulings, which is considered normal given its early operational stage. Recent developments include the adoption of new local rules governing motion practice and mandatory corporate disclosures in the business court. To manage case volume effectively, four cases from the Houston division were assigned to the San Antonio division in late November.
Future legislative efforts are already being discussed, with plans for the 2025 Texas Legislature to potentially further reduce the amount-in-controversy for some disputes and to extend judges’ terms to six years. These initiatives indicate an ongoing commitment by lawmakers to refine and improve the state’s business judicial framework.
In summary, while the expansion of Texas’s business courts has been limited, significant adjustments will soon be implemented to improve the operational capacity of these courts. The upcoming provisions aim to clarify jurisdiction and promote efficiency, with broad legislative support suggesting that Texas leaders recognize the importance of a robust business court system for the future of commerce in the state.
Deeper Dive: News & Info About This Topic
- Bloomberg Law: Texas Business Courts Adding Cases, Not Judges in Approved Bill
- Wikipedia: Texas Business Court
- Vinson & Elkins: Potential Changes to the Texas Business Courts’ Jurisdiction and Operation
- Google Search: Texas Business Courts
- Hunton: The Texas Business Court – The First 100 Days
- Encyclopedia Britannica: Texas Business Courts
- White & Case: Texas Business Courts – What You Need to Know
- Google News: Texas Business Court Changes
