Key Points to Know About New Texas Business Courts

 Posted on October 31,2024 in Business and Commercial Law

Texas recently passed a law creating the Texas Business Courts, and it is official: these new courts are open for business. The courts started operating on September 1, 2024. If you are a business owner in Texas, there are some important things to know about the new courts in the event you have business litigation. An experienced Texas business law attorney can help your business navigate the new court system.

Why Were the Texas Business Courts Created?

The legislature created the courts to provide a legal place for large commercial disputes. The state established a separate business court in order to help resolve disputes faster, develop judge’s specific business law expertise, and encourage a "business-friendly" climate for companies doing business in Texas. 

How to Qualify a Case for the Business Courts

Texas Business Courts will have jurisdiction over certain types of commercial matters, and if your case meets this criteria it can be heard by the new courts. The court will hear a legal dispute for an amount in dispute over $5 million in certain circumstances including:

• A case regarding corporate governance or a company’s internal affairs 

• A case against the owner or manager of a business individually or officially

• A case alleging that the owner, manager, or person with a controlling interest breached a duty they owed to the company.

• A case related to violations of the Business Organizations Code

If the amount in dispute is over $10 million, the Business Courts may hear disputes related to:

• A business transaction over $10 million, other than one that is related to a bank loan

• A case involving a violation of the Texas Finance Code

These are just some of the types of cases over which the Business Courts will have jurisdiction. Additionally, the law also created appellate courts with the exclusive authority to hear appeals to the Business Courts' decisions. 

What Kinds of Cases Will the Courts Not Hear?

The new Texas Business Courts will not hear civil lawsuits against government organizations, and foreclosure actions. Anything related to legal and malpractice claims, as well as estate and personal injury cases, will also not be heard by the Business Courts. 

What Else Should Business Owners Know?

Outside of any litigation, Texas business owners should make sure to consider whether to address the new business courts in any legal contracts. Forum selection clauses used in legal contracts govern the courts to which the parties to the contract will be subject in the event of litigation, so business owners should think about whether or not they want to include the Texas Business Court on that list. 

Contact a Hill County, TX Business Dispute Attorney

The creation of the Texas Business Courts will provide a place for businesses to settle certain types of specific commercial disputes. This is a welcome addition to the Texas court system and the business community in the state but will require the assistance of attorneys experienced in Texas business laws and procedures. At Cain & Kiel Law we can advise your organization about the new Texas Business Courts. Call 817-645-1717 to speak with a Tarrant County, TX business disputes attorney today.