News Summary
Texas lawmakers are making significant changes to the state’s business courts after only a short period since their establishment. A new compromise bill, which has received bipartisan support, will lower the threshold for cases and broaden the court’s jurisdiction. While expansion plans were stalled, this move is seen as beneficial for easing access to business-related legal disputes. The evolution of Texas’s business court system is being closely monitored, with additional legislative efforts anticipated in the near future.
Texas Lawmakers Take Steps on Business Courts: A Change in Direction
In the vibrant city of Austin, Texas, lawmakers are making some interesting moves regarding the direction of the state’s business courts. The legislative action has sparked both chatter and curiosity among businesses in the Lone Star State. Just months after the business courts were established, it appears there’s a new direction in play.
No Expansion for Now
In a recent twist, state lawmakers have decided against expanding the business courts to new cities or adding more judges, especially in bustling court venues. This decision was reached after some heated negotiations in the final days of the legislative session. Though many were hoping for enhancements, Texas Senate leaders opted for a different path, altering a proposal from the House aimed at boosting the business court system.
A Compromise Emerges
After much back-and-forth, a compromise bill is set to be sent to Governor Greg Abbott for his signature. The bill will notably lower the amount-in-controversy threshold for cases from a hefty $10 million down to a more manageable $5 million. This change could make it easier for companies and individuals to bring their cases before the business courts, which is a welcome development for many.
What’s in House Bill 40?
On May 13, the Texas House of Representatives passed House Bill 40 (HB 40) with a resounding 99-40 vote. This bill is quite significant as it seeks to broaden the types of cases that fall under the business court’s jurisdiction. Moreover, it also requires the Texas Supreme Court to establish rules related to this expanded jurisdiction.
With bipartisan support in the House, it’s clear there’s a significant backing for these changes, especially as they could help streamline business-related disputes in the state.
Looking Ahead
If all goes according to plan and the bill is signed into law, these changes from HB 40 would kick in on September 1, 2025. However, there’s a chance they could see immediate implementation if a two-thirds majority in both chambers votes in favor. That’s something to keep an eye on as the legislative winds shift.
Business Courts in Action
Since opening their doors, the Texas Business Court has seen a flurry of activity. In the first 100 days of operation, a total of 53 cases were filed, with Houston’s Eleventh Division taking the crown as the busiest. Although just eleven cases have been closed so far, it’s motivating to see the wheels of justice turning. What’s more, roughly one-third of these cases involve removals from Texas district courts that were pending before September 1, 2024.
Judges Weigh In
Interestingly, five out of the ten business court judges have determined that cases filed before September 1, 2024, are not suitable for removal to the business court. This has prompted at least eight cases to be sent back to district courts based on that ruling. In light of this, two appeals are currently in motion in the Fifteenth Court of Appeals.
Setting the Stage
At this early stage, it’s not surprising that very few rulings have come from the business court. New local rules for the business court have been adopted as well, detailing important aspects like motion practice and mandatory corporate disclosures. Plus, in an effort to keep things balanced, some cases from the Houston division are being transferred to the San Antonio division to help equalize dockets.
Looking Forward
As we gaze into the future, it appears more legislative efforts are already on the horizon. Plans are in the works for the 2025 Texas Legislature to look into further reducing the amount-in-controversy for certain disputes, and there’s buzz about extending judges’ terms to six years.
A recent ruling has also brought clarity to the jurisdictional scope of the business court, which may affect claims for injunctive relief and declaratory judgment as these new changes unfold.
The evolution of Texas’s business court system is definitely something to watch closely. With a combination of legislative backing and evolving case law, there’s no telling how the business landscape in Texas may change in the coming years.
Deeper Dive: News & Info About This Topic
- Bloomberg Law: Texas Business Courts Adding Cases, Not Judges in Approved Bill
- Wikipedia: Texas Business Court
- Vinson & Elkins: Potential Changes to the Texas Business Courts’ Jurisdiction and Operation
- Google Search: Texas Business Courts
- Hunton: The Texas Business Court – The First 100 Days
- Encyclopedia Britannica: Texas Business Courts
- White & Case: Texas Business Courts – What You Need to Know
- Google News: Texas Business Court Changes
