Texas Business Court: What Businesses Should Know

Texas businesses have a relatively new venue for resolving high-stakes commercial disputes, and two years after opening its doors, the Texas Business Court is beginning to develop a body of law that businesses, owners, and attorneys should be watching.

The Texas Business Court officially began operations on September 1, 2024. Designed as a specialized trial court for certain complex commercial disputes, the Court recently marked its second anniversary with more than 500 cases filed since its launch.

The milestone comes with another sign of continuity. In July, Governor Greg Abbott reappointed all ten judges serving in the Court’s five operational divisions to new two-year terms beginning September 1, 2026.

So, what exactly is the Texas Business Court, what types of cases can it hear, and why does it matter to Texas businesses?

What Is the Texas Business Court?

The Texas Business Court is a specialized trial court created to hear certain complex business disputes.

A trial court is generally the court where a lawsuit begins and where the parties develop evidence, present legal arguments, and, when applicable, try the case before a judge or jury. Unlike an appellate court, which primarily reviews decisions made by lower courts, a trial court handles the case in the first instance.

Texas created the Business Court through House Bill 19 in 2023, and the Court began accepting cases the following year.

The concept is relatively straightforward: some business disputes involve complicated corporate structures, sophisticated commercial agreements, significant financial stakes, or specialized areas of law. The Business Court provides a forum specifically designed to handle qualifying cases of that nature.

The Court has eleven geographical divisions established by law, but five are currently operational:

First Division — Dallas
Third Division — Austin
Fourth Division — San Antonio
Eighth Division — Fort Worth
Eleventh Division — Houston

Each operational division has two judges.

What Types of Cases Can the Business Court Hear?

Not every lawsuit involving a business belongs in the Texas Business Court.

The Court has subject-matter jurisdiction over specific categories of disputes. Subject-matter jurisdiction simply means a court’s legal authority to hear a particular type of case.

The Texas Legislature expanded and clarified that authority through House Bill 40, which became effective September 1, 2025.

Under current law, the Business Court has jurisdiction over qualifying disputes that can include:

Corporate governance and internal business disputes;
Certain disputes involving business, commercial, or investment transactions;
Certain contract disputes;
Intellectual property disputes;
Trade-secret disputes;
Certain disputes involving publicly traded companies; and
Certain matters involving arbitration.

Whether a particular case qualifies depends on the nature of the claims, the parties, the amount in controversy, and other statutory requirements.

For many categories, the amount in controversy must exceed $5 million.

The “amount in controversy” generally refers to the monetary value at stake in the dispute. Importantly, determining that amount is not always as simple as looking at the dollar amount requested in the complaint. The claims, contracts, requested relief, and other circumstances may affect whether a case meets the jurisdictional threshold.

Intellectual Property Disputes Are Now Part of the Picture

One particularly notable development for Texas businesses is the expansion of the Business Court’s jurisdiction over certain intellectual property matters.

Effective September 1, 2025, House Bill 40 expressly brought qualifying actions involving the ownership, use, licensing, lease, installation, or performance of intellectual property within the Court’s jurisdiction. The legislation also included qualifying actions arising under the Texas Uniform Trade Secrets Act.

Intellectual property, or IP, generally refers to legally protected intangible creations and business assets, such as patents, trademarks, copyrights, and trade secrets.

A trade secret is certain confidential business information that derives economic value from not being generally known and is subject to reasonable efforts to keep it secret. Examples can include proprietary formulas, processes, methods, customer information, or other confidential commercial information, depending on the circumstances.

For businesses involved in significant IP or trade-secret disputes, the Business Court may therefore present another potential Texas forum.

Cases Can Also Be Removed to the Business Court

Some cases begin in the Business Court, while others arrive there through removal.

Removal is the legal process by which a qualifying lawsuit that was initially filed in another Texas court is transferred to the Business Court.

The timing of removal can matter significantly.

Recent Business Court decisions illustrate that the Court is actively defining when parties know, or reasonably should know, that a case satisfies its jurisdictional requirements. For example, in The Bakery v. Naterra International, decided September 15, 2026, the Court addressed when the 30-day period for removal began after counterclaims placed the dispute within the Court’s amount-in-controversy jurisdiction.

For businesses and their attorneys, that means Business Court jurisdiction may need to be evaluated not only when a lawsuit is first filed, but as claims and counterclaims develop.

The Court Is Building Texas Business Law in Real Time

Perhaps the most significant development after two years is that the Business Court is no longer simply a new court with a new set of procedural rules. It is steadily producing written opinions addressing substantive business-law questions.

Those decisions have touched on issues involving:

LLC and corporate governance;
Fiduciary duties;
Contract interpretation;
Trade secrets;
Business ownership disputes;
Arbitration;
Jurisdiction and venue; and
The rights and obligations contained in company agreements.

A fiduciary duty is a legal obligation that may require a person in a position of trust or authority to act in accordance with duties owed to another person or entity. Whether such a duty exists, and whether it can be limited by contract, can be particularly important in disputes among LLC members, managers, officers, directors, and other business owners.

A recent Business Court decision illustrates why the language of those agreements matters.

In Hinds v. Sandman Offshore, decided September 14, 2026, the Court addressed fiduciary duties involving an LLC and concluded, among other things, that provisions in the company’s governing agreement limited certain duties that might otherwise have been asserted.

The decision is part of a developing body of Texas Business Court opinions emphasizing the importance of the agreements businesses negotiate before a dispute ever arises.

Why Written Opinions Matter

The Texas Business Court is required to issue written opinions on important issues, which is one of the features that distinguishes it from ordinary trial-court litigation.

Those opinions can provide businesses and their attorneys with additional guidance about how Texas courts may interpret commercial agreements and resolve recurring business-law questions.

That developing precedent may ultimately help companies better understand the legal consequences of contractual language before a dispute occurs.

It also makes the Court’s decisions worth watching even for businesses that never appear before it.

What Businesses Can Take Away From the Court’s First Two Years

The Texas Business Court’s development provides several practical reminders.

First, the language in business agreements matters. Operating agreements, company agreements, ownership provisions, indemnification clauses, dispute-resolution provisions, and other contractual terms may become critical when a business relationship breaks down.

Second, businesses involved in significant commercial litigation should determine early whether the Business Court has jurisdiction. That analysis may also need to be revisited if new claims, counterclaims, or facts change the nature or value of the dispute.

Third, companies should pay attention to the Court’s growing body of written decisions. Those opinions are increasingly addressing issues that affect businesses well beyond the parties involved in a particular lawsuit.

Finally, the Court itself is still evolving. Only five of its eleven divisions are currently operational, and questions surrounding future expansion and funding remain.

The Bottom Line

Two years after opening its doors, the Texas Business Court is becoming an increasingly important part of the state’s commercial litigation landscape.

With more than 500 cases filed, all ten sitting judges reappointed to new terms, expanded jurisdiction, and a growing collection of written opinions, the Court is beginning to provide businesses and practitioners with greater insight into how complex commercial disputes will be handled in Texas.

For businesses, the lesson is not simply to pay attention once litigation begins. The Court’s decisions reinforce something companies should consider long before a dispute arises: carefully drafted contracts, company agreements, and dispute-resolution provisions can have significant consequences when business relationships are tested.

Griffith Barbee represents businesses and individuals in complex commercial and intellectual property disputes in state and federal courts. If you have questions about a business dispute, intellectual property matter, or litigation strategy, contact our team.