New Legislation Expands Texas Business Courts’ Jurisdiction

The Texas Business Courts were established in 2023 as specialized forums for business-related cases, with the aim of providing faster, more efficient resolution of complex disputes like those involving corporate governance, securities, finance and traditional causes of action such as contract breaches and business torts. Proponents argued that judges with expertise in business and financial matters would be better equipped to handle commercial law cases, thereby providing more predictable and grounded rulings. Judges in these courts are required to have 10 or more years of experience practicing complex civil business litigation, practicing business transaction law or serving as a Texas civil court judge.

As of September 1, 2025, new legislation takes effect that brings substantial changes to the operations of the Texas Business Courts. The revisions are meant to refine the structure and functioning of these courts so that they are better equipped to handle the demands of business disputes,.

One of the primary facets of the new law is the expansion of the courts’ jurisdiction by lowering threshold limits as follows:

• The minimum amount in controversy required has been reduced from $10 million to $5 million. In addition, claims by all parties in an action can be aggregated to meet the $5 million minimum.
• The threshold value of a “qualified transaction” is also reduced from $10 million to $5 million. A qualified transaction can be composed of multiple transactions related to the same case.

Texas Business Courts have been given wider authority over a broader range of business-related cases. These include not only traditional commercial disputes but also cases involving intellectual property, including trade secrets, and investment contracts. Notably, the courts’ jurisdiction does not include consumer transactions disputes.

The courts now have jurisdiction over suits to enforce arbitration agreements or to challenge arbitration awards. They are also authorized to appoint an arbitrator, if the arbitration agreement so allows. 

Other significant changes in the new law are requirements that the Texas Supreme Court adopt more stringent procedural rules to determine business court jurisdiction and also establish time limits for assertion of issues or claims. A case can be filed directly in Texas Business Courts or can be removed from other courts if it meets the statutory criteria, including the financial stakes involved, the complexity of the legal issues, and the broader significance of the case to the commercial law landscape. 

These changes should not only enhance the effectiveness of the Texas Business Courts but also reinforce the state’s commitment to maintaining and enhancing a business-friendly environment. If you are engaged in any sort of commercial disagreement, a Texas business disputes attorney can assist you in resolving it effectively. 

At the Law Firm of Richard L. Ellison, P.C. in Kerrville, I have deep experience litigating and negotiating resolutions of business-related issues for clients throughout the Texas Hill Country. To arrange a consultation, call 830-955-8168 or contact me online.