Back in 2023, Texas passed legislation that would open Texas Business Courts to hear an enumerated list of complex commercial disputes, which first opened on September 1, 2024. In the months following – only about 80 lawsuits were filed in these Courts and I would say a fair amount of Texas lawyers are not aware of their existence. However, on May 13, 2025, the Texas Legislature passed House Bill 40, which dramatically expanded the role and jurisdiction of the Business Courts.
First, the amount in controversy requirements for “qualified transactions” was dropped from $10 million to $5 million. The parties’ governing documents can actually contract to establish venue in the Texas Business Courts (“TBC”). The TBCs will now be able to enforce arbitration agreements, appoint arbitrators, or review arbitration awards regardless of the amount in controversy, if the claim is otherwise within the court’s jurisdiction. The TBCs will have jurisdiction over trade secret disputes and a broader range of intellectual property disputes. Moreover, a number of provisions referenced in Texas Codes providing for district court jurisdiction, will be updated to permit TBC jurisdiction. However, TBC jurisdiction will not extend to claims related to a consumer transaction as defined by Section 601.001 of the Texas Business and Commerce Code.
Why this is important – the TBCs have their own local rules. For example, a common dispute is over discovery. The TBCs have specialized procedures for how to handle discovery disputes, including limited briefs to specific lengths.
Therefore, the next time you have large loss litigation – you may want to consider the TBCs as a more efficient forum to practice in rather than the district courts.
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Christopher Chapaneri a distinguished Lydecker attorney with extensive expertise in civil litigation, construction defect, premises liability, amusement park litigation, commercial motor vehicle/trucking, employment law, and environmental litigation—including mold exposure and vegetation management/overspray matters. Chapaneri also has a robust appellate practice, having successfully handled cases before the Texas Supreme Court and the Fifth Circuit Court of Appeals.
In addition, Chapaneri brings substantial experience in handling high exposure and high-risk cases, further strengthening Lydecker’s ability to serve clients across multiple industries in Texas and beyond. Chapaneri also provides services in the State of Oklahoma.
