Content Highlights
This year the Texas Legislature expanded access for more commercial lawsuits to be filed in Business Court. These changes offer a more streamlined path for resolving business disputes.
At Gardner Employment Law, we know that you want to spend the least time possible in litigation. Continue reading to learn how changes in the Business Court’s role in the civil justice system affects companies and practitioners.
What Is Changing for Business Litigation in Texas?
The Texas Legislature recently amended the statutes governing the Texas Business Court, particularly in House Bill 40 (effective September 1, 2025). These changes expand jurisdiction, relax eligibility requirements, and refine venue and procedural rules.
Summary of Key Requirements:
| Feature | New Provisions |
| Monetary threshold | The minimum “amount in controversy” for many claims has been lowered from $10 million to $5 million. |
| Qualified transaction definition | Now includes a “series of related transactions” (not just a single deal) to meet the threshold. |
| New subject-matter categories | Adds (1) intellectual property and trade secrets claims and (2) arbitration awards to the Business Court’s jurisdiction. |
| Venue & removal rules | Venue may be established by statute, governing document, or contract; removal timelines and service of process triggers have been clarified. |
| Pre-Sept 1, 2024 cases | The statute now permits some cases filed before September 1, 2024 to transfer into the Business Court, with party agreement and court permission. |
What Do These Changes Mean for Businesses?
The expanded scope of the Business Court means that a much broader range of commercial disputes can now be heard in this specialized forum. These judges are experts in handling complex business disputes, which saves companies both time and money, according to the Texas Business Association.
Lower Jurisdictional Requirement:
By lowering the jurisdictional threshold from $10 million to $5 million and redefining what qualifies as a “related transaction,” the legislature opened the door to the Business Court for mid-sized and regional businesses, not just large corporations. This shift could result in faster and more consistent decisions in complex business matters, especially those involving multiple related contracts or multi-party transactions.
Intellectual Property and Trade Secrets
Allowing lawsuits about intellectual property and trade secrets represents another major development. Historically, these cases were heard in general civil courts before judges with varying degrees of business expertise.
By channeling them into the Business Court, Texas aims to promote more specialized adjudication and a more predictable body of case law for high-value commercial claims. The same is true for disputes involving arbitration enforcement or review, which will now benefit from judges experienced in complex business arrangements.
Venue and Removal
The revised venue and removal provisions allow parties to rely more confidently on forum-selection clauses in contracts, knowing that the Business Court will recognize such agreements. At the same time, the ability to transfer certain pre-September 1, 2024 cases into the new forum gives litigants flexibility to take advantage of the Business Court’s procedural efficiencies – provided all parties consent and the court approves. For counsel, that means forum strategy should now be a key part of both contract drafting and early case assessment.
How Will These New Laws Affect A Business Practice?
If your company, in-house legal department, or outside counsel litigates commercial disputes in Texas, the statutory changes to the Business Court mean more strategic opportunities (and some caution points).
Here are practical takeaways:
- Check contract wording: Does the contract agree to Business Court jurisdiction? Does it specify venue? With the Business Court’s expanded reach, those clauses matter more.
- Evaluate pending matters: If you have a case that now meets the new threshold (≥ $5 million) or involves IP/arbitration, consider whether removal to or filing in the Business Court might offer advantages: specialized judges, consistent procedures, perhaps faster resolution.
- Stay updated on rules: The Supreme Court of Texas has been tasked with adopting rules for prompt and efficient determination of Business Court jurisdiction. Those procedural rules could significantly affect strategy.
- Venue & removal timing: Be aware that removal deadlines and triggers (such as service of process) are clarified – missing those could foreclose the option to use the Business Court forum.
- Governing documents review: If you’re advising corporations or partnerships, review the governing documents (operating agreements, bylaws, shareholder agreements) to ensure they reflect desired forum/venue choices in light of the Business Court’s reach.
Bottom Line
If you’re operating in Texas (or expect to litigate there), now is the time to revisit your dispute-resolution strategy, contracts, and matter assessment in light of these changes.
If you have questions about how the new Texas Business Courts may affect you, give us a call.