New Landscape for Business in Texas

A significant shift is underway in the Texas legal system, aimed at providing a more efficient and specialized forum for complex business disputes. The Texas Business Court, launched on September 1, is now operational, with ten inaugural judges sworn in by Governor Greg Abbott on September 19. This new court is envisioned to lighten the load of the state's overburdened judicial system by handling business-oriented cases with judges possessing expertise in business law. The business court is divided into 11 divisions across Texas, with five already operational in the state's largest cities. Parties can file cases in either district courts or the new business court system. However, the new court will only handle governance cases with more than $5 million in controversy or those involving publicly traded companies, as well as contract disputes or other "qualified transactions" where more than $10 million is at stake. The judges appointed to the business court will issue written opinions, unlike state district courts. Jerry Bullard, one of the inaugural ten judges, expressed his enthusiasm for writing opinions, which he believes will benefit parties, lawyers, and the public by providing clarity on the court's decisions.