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Exuberantly welcomed by some, and seen by others as experimental, controversial, or necessitating a wait-and-see approach, Texas’ Business Court system has nearly completed its first year. Though still in its formative stage, Texas wastes no time doubling down on Business Court growth and permanence in a continued effort to become the preferred destination for businesses. As we reflect on the Business Court system’s inaugural year, this article explores notable milestones, current developments, and its burgeoning future.

Year in Review

House Bill 19 (“HB 19”), which created the Texas Business Court system, did so with twin goals of efficiency and consistency in resolution of sophisticated business disputes. As of August 1, 2025, more than 165 cases have been filed in the Texas Business Courts. Of those cases, the disputes are evenly split between “debt/contract” and “other civil.”  64% of cases filed are currently active, 28% have been resolved through disposal, dismissal, or are on appeal, and 8% are inactive or have been transferred.

Business Courts are slowly increasing in popularity, with cases filed in the last six (6) months comprising 66% of all cases filed. In terms of court location, the First Division (Dallas) and Eleventh Division (Houston) have seen the vast majority of cases thus far:

To create a predictable and reliable body of law, Business Court judges, unlike district court judges, are required to issue written opinions. To date, the Texas Business Courts have issued more than 36 opinions.

Senate Bill 1045 created the Fifteenth Court of Appeals, which has exclusive jurisdiction over cases brought by or against the State and cases on appeal from the Business Courts. To date, 127 matters have reached the Fifteenth Court of Appeals. That appellate court has issued 146 written opinions (the bulk of which regard suits against state agents).

Opinions from the Business Courts so far have primarily resolved procedural and jurisdictional issues. For example:

• The amount in controversy requirement is not limited to a sum of money but also includes “the value of the thing originally sued for.” Safelease Ins. Servs. LLC v. Storable, Inc., 2025 Tex. Bus. 6, ¶ 12, 707 S.W.3d 130, 134 (3rd Div. 2025) (cleaned up) (emphasis in original).
• Jurisdiction under Section 25A.004(b)(2) applied to allegations that a lottery winner would have received higher winnings but for an interfering business created for the purpose of rigging the lottery. Plaintiff’s claims involved governance matters such as company management and direction issues, validity of company formation, and duties of the managers and directors. Reed v. Rook TX, LP, 2025 Tex. Bus. 23, ¶ 18, 2025 TXBC LEXIS 26, at *10 (3rd Div. 2025).
• A party seeking removal need only include a plausible allegation of jurisdiction; it does not need to attach supporting evidence. C Ten 31 LLC v. Tarbox, 2025 Tex. Bus. 1, ¶ 21, 708 S.W.3d 223, 239-40 (3rd Div. 2025).

The few opinions resolving substantive issues have largely involved fiduciary duties:

• Statutory limits on fiduciary duty waivers (Tex. Bus. Org. Code § 152.002) do not apply to non-partners such as directors or affiliated entities. Primexx Energy Opportunity Fund, LP v. Primexx Energy Corp., 2025 Tex. Bus. 21, ¶¶ 11-13, 2025 TXBC LEXIS 25, at *4-5 (1st Div. 2025).
• While limited liability company members do not owe broad formal fiduciary duties to each other, an informal fiduciary relationship may be properly alleged by pleading the existence of a special relationship of trust and confidence that arose before and separate from the agreements made the basis of the suit. Tall v. Vanderhoef, 2025 Tex. Bus. 15, ¶¶ 23-25, 2025 TXBC LEXIS 18, at *12-14 (8th Div. 2025).

Expansion of the Business Court is Around the Corner

Earlier this summer, the Texas Legislature passed, and Governor Abbott signed into law, House Bill 40 (“HB 40”), which bolsters the Business Court system and advances its reach. HB 40 takes effect September 1, 2025, but as discussed further below, the Fifteenth Court of Appeals is already applying the new law. HB 40’s most prominent changes include:

• Reducing the jurisdictional amount in controversy to five (5) million dollars. Previously, the “qualified transaction” prerequisite to jurisdiction required that the transaction underlying the dispute carried at least a ten (10) million dollar value. Though now reduced, parties may still aggregate claims and transactions to reach the five (5) million dollar threshold.
• Preservation of the six (6) divisions without a Business Court. Pending Business Courts in the second, fifth, sixth, seventh, ninth, and tenth divisions were previously set to be abolished as of September 1, 2026 unless the Texas Legislature reauthorized and funded those courts. Now, these not-yet-operational Business Courts will endure and become active upon the Legislature’s funding.
  • Of note, Montgomery County was previously considered part of the second Business Court division which does not have an operational court. HB 40 moved Montgomery County to the eleventh division, which contains the busiest Business Court (Houston).
• Business Court jurisdiction expands to additional disputes. The Business Courts now have concurrent jurisdiction with district courts in actions exceeding a $5 million dollar amount in controversy arising out of indemnification agreements, non-compete agreements related to fundamental business transactions, arbitration agreements, IP disputes, and malpractice of an organization’s licensed professional. Business Courts also have concurrent jurisdiction over actions transferred by the MDL judicial panel (without regard to amount in controversy).
• Supplemental jurisdiction now extends to claims that require joinder or intervention of additional parties. Previously, supplemental jurisdiction could only proceed upon consent of all parties and the judge of the court where the matter was pending.
• The Supreme Court of Texas will adopt additional rules of civil procedure. Those rules will focus on ensuring efficiency in litigation, limiting movement of actions that would slow down a court’s resolution of disputes, and addressing evolving needs of business litigants until applicable precedent is established.
• Courts must operate in facilities equivalent to those provided to district courts. In its very early days, some of the Business Courts operated in novel settings such as surplus state buildings or borrowed classrooms. HB 40 applies minimum standards to Business Court facilities and allows such courts to seek reimbursement from the state to accomplish this objective.
• Cases filed prior to September 1, 2024 may be transferred to the Business Court. Previously, the Business Court’s jurisdiction was limited to “apply to civil actions commenced on or after September 1, 2024.” HB 19, § 8. But the Legislature desired to accommodate complex civil actions that would suffer extensive delay in district court. Now, so long as jurisdiction exists and the parties agree, preexisting cases may be transferred to the Business Court. See Tex. Gov’t Code § 25A.021(a).

The Fifteenth Court of Appeals Authorizes the First Retroactive Removal

On July 31, 2025, the Fifteenth Court of Appeals held that cases filed prior to existence of the Business Court system may still be removed to the Business Court. The case, filed in Harris County in May of 2021, involved a complex commercial dispute relating to the sale of natural gas liquids under two gas purchase agreements. While the case was pending and deep in discovery, Texas created and opened the state’s first Business Courts.

The parties subsequently agreed to consent to Business Court jurisdiction and filed a joint notice of removal. The Business Court remanded the case, reasoning that Section 8 of HB 19 operated as a jurisdictional bar to any case filed before September 1, 2024. (This finding was consistent with previous holdings on retroactive removal, and indeed, the Fifteenth Court of Appeals itself previously held the same: pre-September 1, 2024 civil actions may not be removed to Business Court because such removal does not commence a new action in Business Court, as required by Section 8, but merely transfers a pre-existing case.) The parties appealed the Business Court’s decision.

While their appeal was pending, HB 40 was passed. Now relying on the bill’s language, the Fifteenth Court of Appeals found section 8 of HB 19 was not a jurisdictional limit. Civil actions commenced before September 1, 2024 may properly be removed to Business Court so long as (1) the parties agree to removal, and (2) the action otherwise meets the Business Court’s jurisdictional requirements. See Tex. Gov’t Code § 25A.021(a). The case was then remanded to ensure the two requirements were met.

Momentum in Motion: Texas is Doubling Down

Texas makes no bones about its ambition to be the premier destination for corporate success. More than just an efficient venue for resolving disputes, the Business Court system is the linchpin of Texas’ strategy.

HB 40 sets a bold benchmark: litigation in the Texas Business Courts should be more efficient and effective than in comparable courts in other states—30 of which maintain specific business courts. Texas is not simply improving litigation for its own citizens; it is aiming to become the go-to forum for business litigants across the United States.

Thus, its investment in the Business Court system is strategic. By developing a specialized court with its own body of law, companies are poised to save millions in legal fees through streamlined procedures and increased predictability. This means smarter planning, fewer courtroom surprises, and faster resolution when litigation is unavoidable.

Growing the Business Court system also complements a series of recent corporate reforms, including codification of the business judgment rule, new thresholds for shareholder derivative actions, and limitations on shareholder proposals. These changes, combined with the 2026 launch of the Texas Stock Exchange in Dallas (and its promises of lower regulatory burdens) underscore the state’s comprehensive commitment to becoming the ultimate hub for business.

Time will tell if Texas’ pro-business efforts yield the desired results. Nonetheless, the Business Court system is firmly established, positioned for continued growth, and will certainly play a significant role in how Texas companies navigate legal strategy decisions.