Texas Business Courts’ First Year Marked by Focus, Speed, and Efficiency
Austin, TX, September 4, 2025 — The Texas Business Courts, launched on September 1, 2024, have completed their first year of operation, earning praise from attorneys for their focused approach, rapid case resolution, and hands-on judicial engagement. Designed to handle complex commercial disputes, the courts have processed 185 cases across their five active divisions, with the Houston division leading in filings, and issued 42 written opinions, many addressing jurisdictional questions. This milestone, celebrated at a September 19, 2024, swearing-in ceremony in Fort Worth, underscores Texas’ ambition to rival Delaware’s Chancery Court as a premier venue for business litigation.
A New Era for Business Litigation
Created by House Bill 19 (2023), the Texas Business Courts aim to provide a specialized, efficient mechanism for resolving disputes involving derivative actions, securities claims, breaches of fiduciary duty, and commercial disputes exceeding $5 million (or any amount for publicly traded companies). The courts operate in five divisions—Dallas, Austin, San Antonio, Fort Worth, and Houston—with plans to expand to all 11 Texas judicial regions by July 2026. Each division is staffed by two appointed judges, selected by Governor Greg Abbott for two-year terms, with a minimum of 10 years’ experience in complex business litigation, transactional law, or civil judicial service.
Governor Abbott, speaking at the Fort Worth ceremony, emphasized the courts’ goal: “These courts ensure Texas businesses have a sophisticated and efficient process to resolve disputes, fostering a bigger, better Texas.” Unlike traditional district courts, which handle diverse caseloads, the business courts’ specialized focus and smaller dockets—averaging fewer than 20 cases per judge as of February 2025—enable faster adjudication and detailed written opinions, enhancing transparency and precedent-setting.
Judicial Focus and Speed
Attorneys have lauded the courts for their efficiency and judicial expertise. “The business courts have created a faster, more judicially hands-on litigation process than district courts can offer,” said Michael Holmes of Vinson & Elkins. The courts’ preliminary procedural rules, finalized by the Texas Supreme Court on June 28, 2024, streamline case management, including procedures for transferring cases from district courts (Rule 356) and suspending statutes of limitations for 60 days post-dismissal (Rule 357). These rules, combined with judges’ expertise, have led to quicker hearings and rulings, particularly on early motions like dismissals and summary judgments.
In their first 100 days, the courts handled 53 cases, with Houston’s Eleventh Division accounting for over half. By March 2025, the total reached 86, with 57 cases still pending. Notably, one-third of filings were removals from district courts, though five judges ruled that pre-September 1, 2024, cases were ineligible for transfer, citing HB 19’s language limiting jurisdiction to actions commenced on or after that date. Two appeals challenging these rulings are pending in the Fifteenth Court of Appeals, created specifically to review business court decisions.
Key Achievements and Challenges
The courts’ judges, including Andrea Bouressa and William Whitehill (Dallas), Melissa Andrews and Patrick Sweeten (Austin), Marialyn Barnard and Stacy Sharp (San Antonio), Jerry Bullard and Brian Stagner (Fort Worth), and Sofia Adrogué and Grant Dorfman (Houston), have been praised for their rigorous qualifications and proactive case management. Their requirement to issue written opinions on dispositive rulings or significant jurisprudential issues has created a growing body of precedent, offering litigants greater certainty. Fort Worth judge Jerry Bullard noted, “Written opinions benefit parties, lawyers, and the public by showing what courts are doing and why.”
However, challenges remain. The two-year judicial terms have raised concerns about stability, with critics like Dallas trial lawyer Jeff Tillotson arguing that short appointments could make outcomes less predictable. Additionally, the Houston division’s heavy caseload—42 of 57 open cases as of March 2025—prompted docket equalization measures, reassigning 11 cases to other divisions’ judges, which may reduce venue certainty for litigants. Constitutional challenges to the courts’ appointed (rather than elected) judges and the Fifteenth Court of Appeals’ statewide jurisdiction have also surfaced, though the Texas Supreme Court upheld the appellate court’s constitutionality in August 2024.
Strategic Implications for Litigants
The business courts’ speed and expertise make them an attractive venue for complex disputes, particularly for businesses seeking predictability over Delaware’s Chancery Court, which lacks juries. Unlike Delaware, Texas business courts retain jury trials for fact-based questions, aligning with the state’s legal traditions. Attorneys recommend that businesses include forum selection clauses designating the business courts in contracts to leverage their efficiency. However, the courts’ limited jurisdiction excludes personal injury, wrongful death, and certain consumer claims, requiring careful case assessment.
The courts’ early success has drawn comparisons to Delaware, with Ryan Wooten of Orrick noting, “Texas is signaling to businesses: ‘Come here, and we’ll resolve your disputes in a sophisticated way.’” The courts’ focus on transparency and precedent-setting could influence Texas jurisprudence long-term, particularly as litigants benefit from a growing body of written opinions.
Looking Ahead
As the Texas Business Courts approach their second year, they are poised to expand their influence, with additional divisions planned for Beaumont, Corpus Christi, El Paso, Midland, Lubbock, and Tyler by September 2026. The outcome of pending appeals on jurisdictional issues and potential Supreme Court challenges to the courts’ structure will shape their future. For now, their first year’s performance—marked by speed, focus, and judicial expertise—positions Texas as a rising hub for business litigation, offering businesses a compelling alternative to traditional courts and out-of-state venues.
For more information, contact the Texas Business Courts Clerk’s Office at clerk@txbusinesscourts.gov or visit www.txbusinesscourts.gov.