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Business disputes now have their own home in the Texas courts. The Business Courts, created by the state legislature in 2023 and tweaked in 2025, are a long time coming.
Plenty of articles explain the Business Courts to lawyers. The goal for this one is to explain them (the important bits, at least) to those who own or run companies. Even if your business rarely litigates, you need at least a basic grasp of this major change in Texas law.
Right now, your contracts likely specify where and how any disputes will be resolved. Usually, the options are private arbitration or a particular court venue (say, Harris County). Now, though, you can steer certain disputes to the new Business Courts.
No one enters a deal expecting it to end in a fight. However, if you run a business, you know it’s critical to think ahead and ensure any future disputes are resolved on terms you’ve chosen. Understanding the Business Courts and how to select them is a powerful tool in your contracts and operations. Even if you don’t pick them, you could still end up there—so it’s important to know what that means.
Below is a quick primer: what these courts are, which cases they handle, whether you can choose them in contracts, and whether you should. Reach out if you have questions or you’d like to hear more at (281) 829-1555.
Texas has created a new set of trial-level courts focused solely on complex business disputes. Eleven regions make up the system. The Eleventh District, for example, covers Houston and currently has two judges. The rulings of these new trial-level courts can be appealed to the new Fifteenth Court of Appeals (which only hears appeals from the Business Courts) and then to the Texas Supreme Court.
Texas now joins other states with dedicated business courts, including Delaware (Court of Chancery) and New York (Commercial Division).
Not every case qualifies. These courts have limited jurisdiction and handle only certain types of business disputes that have enough money at stake.
First, there must be at least $5 million in controversy. That threshold can be met by adding up the claims of all parties, including counterclaims and cross-claims. This is a recent and important change; previously, you couldn’t aggregate claims, and many categories required $10 million. Many more cases will now qualify, even if no single party or claim clears the threshold alone.
Second, the subject matter must fall within the courts’ scope. Some of the main categories include: • Contract disputes between businesses • Business torts, like fraud or tortious interference • Claims involving company insiders (officers, directors, managers, controlling owners) • Shareholder derivative suits and governance disputes • Trade secret or non-compete issues between businesses • Cases involving publicly traded companies or certain high-asset entities • Securities and Business Organizations Code claims between businesses
Broadly speaking, these courts hear high-stakes, internal, or complex business cases. They do not hear personal injury, consumer, employment, landlord-tenant, or residential construction disputes. (These courts also hear lawsuits against the state, but our focus here is on commercial cases.)
Yes—if your case qualifies. You can’t force your way into the Business Courts just by saying so in a contract, but the Business Courts can hear a case if three conditions are met: (1) it comes out of a commercial or investment contract, (2) the parties agreed that the Business Courts have jurisdiction, and (3) there’s at least $5 million in controversy.
Essentially, parties can agree in advance that they’ll have the Business Courts decide contract disputes if they’re big enough to qualify. You might do this with a venue clause agreeing to bring (a) qualifying disputes in the Business Courts and (b) all other disputes in the district courts of your preferred county.
Yes, sometimes. Cases can be filed in the Business Courts directly. A case filed in a regular court can be moved to the Business Courts if it qualifies. If the parties agree to transfer it, they can do so anytime. If not everyone agrees, the transfer must be requested promptly. In most cases, the deadline is 30 days after the requester is served, although there are exceptions. Wait too long, and the case stays where it is. If you think your case may qualify, raise it early.
It depends on the case and your preferences, but it’s worth considering. On paper, the appeal is clear: a forum for handling complex commercial issues with judges who have deep experience in business law. The goal is faster, more consistent decisions—something many litigants feel they don’t receive in the general district courts.
Before, if you wanted to make sure your decisionmaker had experience in commercial cases, you had to arbitrate privately. But arbitration comes with serious drawbacks. You lose the right to appeal the result, even if it’s wrong. Vacating an arbitration award is (technically) legally possible, but (very) rarely successful. And while arbitration has been touted as the faster, cheaper alternative to court, the opposite is often true.
The other path—regular district court—can feel like a gamble. Some judges have excellent commercial experience; others don’t. That variance, added to the backlogs and delays and the reshuffling of judges each election cycle, makes for an unpredictable forum.
The Business Courts, if they live up to their promise, slot in as an enticing third option. But it’s early. The courts are new, the rules are developing, and the legislature continues to tweak their jurisdiction.
If your business deals with high-dollar contracts, deals, or investments, the Business Courts are worth keeping an eye on and likely worth including in your contract templates.
While these courts bring real promise, they’re still finding their footing. Well-drafted clauses can give you a leg up, but it’s smart to keep your expectations measured while the courts evolve.
If you’d like help updating your contracts to allow for Business Court assignment or assessing whether your current case belongs there, our team can help. Visit www.dorelaw.com or call (281) 829-1555.
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