Big Changes Coming to the Texas Business Court

News Summary

The Texas Legislature has made significant adjustments to the Texas Business Court, lowering the threshold for cases from $10 million to $5 million. This change, part of House Bill 40, aims to enhance access for mid-size businesses and streamline complex proceedings. Additionally, the court will have expanded jurisdiction over various disputes, including intellectual property, and will strengthen enforcement of arbitration agreements. These reforms are set to position Texas as a leading venue for commercial litigation, benefiting business owners and stakeholders alike.

Big Changes Are Coming to the Texas Business Court!

Howdy, Texas! We’ve got some exciting news that could significantly impact how businesses in the Lone Star State handle their disputes. That’s right! The Texas Legislature has recently made some important adjustments to the Texas Business Court structure, and it’s all thanks to House Bill 40 (HB 40), which was signed by Governor Abbott on June 20, 2025. Set your calendars, folks—these changes will officially kick in on September 1, 2025.

What’s the Big Deal?

For many years, the threshold for bringing a case to the Texas Business Court was a hefty $10 million. But, that’s all about to change as it gets decreased to a more manageable $5 million. What does this mean for you? Well, it opens the floodgates for mid-size businesses and stakeholders who previously might have felt overwhelmed by that high barrier to entry. Now, it’s easier than ever for companies to seek justice in the event of a business squabble!

Bringing it All Together

But wait, there’s more! Now, if several related transactions are involved, they can be bundled together to reach that shiny new $5 million minimum threshold. This means if you find yourself in a tangle with an array of complicated dealings, you can now present your case in a way that makes sense for your organization, all under one roof. Talk about simplifying the process!

Expanded Jurisdiction

The Texas Business Court isn’t just lowering the bar; it’s also spreading its wings. The court now has jurisdiction over various types of disputes, including those involving intellectual property, like patents, trade secrets, software, and even data security. That’s right, folks! If your business involves cutting-edge tech or innovative biotech, you now have a dedicated space to resolve any conflicts over your valuable creations.

If your company has entered into business, commercial, or investment contracts (aside from insurance contracts), you might find the Texas Business Court beneficial. Parties can now mutually consent to bring their disputes to this specialized court, making it easier to navigate the intricacies of commercial agreements.

Empowering Arbitration

The amendments don’t stop there. This law also enhances the court’s power to enforce arbitration agreements, appoint arbitrators, and even review arbitral awards. This is fantastic news for anyone looking to avoid lengthy court battles. With these powers in play, businesses can efficiently resolve conflicts while resting easy that the process will be fair and just.

Smoothing Out the Process

What about the court’s inner workings, you ask? Well, the Texas Supreme Court is directed to establish rules governing jurisdictional determinations. This will help expedite court processes, meaning you won’t have to twiddle your thumbs waiting for resolutions.

Aiming for Excellence

The motivation behind HB 40 is crystal clear—to streamline complex proceedings and provide judges with the right tools to handle high-stakes commercial disputes. As Texas aims to position itself as a top state for business incorporation, these reforms will likely lead to an increase in litigation filings in the Texas Business Court. This court is shaping up to be the go-to venue for high-value cases.

What Does This Mean for You?

Whether you’re a business owner, stakeholder, or simply curious about the bustling world of Texas commerce, these changes reflect a significant commitment to enhancing the practical utility of the Texas Business Court. With reforms designed to make navigating business disputes easier and more efficient, it’s clear Texas is determined to become a leading forum for commercial litigation, even rivaling Delaware’s renowned Court of Chancery.

So get ready, Texas! It looks like the Texas Business Court is gearing up to help businesses resolve disputes swiftly and fairly, as we look forward to a future filled with economic growth and opportunity in our great state!

Deeper Dive: News & Info About This Topic

• Jenkins & Watkins: Insights on Texas Business Courts Structure & Jurisdiction
• Dykema: Texas Business Courts Video Insights
• Vinson & Elkins: Texas Business Courts Quarterly Update
• Pillsbury: House Bill Expanding Texas Business Court Jurisdiction
• National Law Review: Strengthening Texas Business Courts