Get ready, Houston! New courts are coming to town. Beginning on September 1, 2024, Houston will be home to the newly established Eleventh Business Court Division. Proposed by House Bill 19 in 2023, the business courts are special trial courts designed to resolve complex commercial business disputes. According to the House Judiciary & Civil Jurisprudence Committee Report, legislators sought to "strengthen Texas' reputation as the best state in which to conduct business by creating a specialized business trial court to streamline resolutions of business disputes." The business courts are divided among 11 divisions corresponding to the Administrative Judicial Regions, which encompass all counties within the state. The Eleventh Business Court Division, of which Houston is a part, covers Brazoria, Fort Bend, Galveston, Harris, Matagorda, and Wharton Counties.
The business courts were created under the power granted to the Legislature pursuant to Article V, § 1 of the Texas Constitution and are governed by Chapter 25A of the Texas Government Code. The statute delineates, among other things, the jurisdiction and powers of the courts, the qualifications of the judges, and procedural items such as initial filings, appeals, and jury trials. Some things to know:
Generally speaking, the business court shares the same powers as the district court and has concurrent jurisdiction with the district court in certain matters. Such jurisdiction is dependent upon the type of action and the amount in controversy. See Tex. Gov't Code § 25A.004.
Some actions over which the business court has jurisdiction include derivative proceedings; actions regarding governance, governing documents, or internal affairs; actions for claims asserted under a securities or trade regulation law; an action arising under the Business Organizations Code; and actions arising out of qualified transactions. See Tex. Gov't Code § 25A.004.
The Fifteenth Court of Appeals in Austin will have exclusive jurisdiction over an appeal from a judgment or order from the business court.
Judges will be appointed by the governor and approved by the Senate for a two-year term. For the Eleventh Business Court Division, Governor Abbott has appointed Sofia Adrogué and Grant Dorfman. Judges to the business courts are required to have 10 or more years' experience in "practicing complex civil business litigation," “practicing business transaction law,” or serving as a judge. See Tex. Gov't Code § 25A.008.
Parties have a right to a jury trial “when required by the constitution.” See Tex. Gov't Code § 25A.015(a).
On June 28, 2024, the Supreme Court of Texas issued its Final Approval of Rules for the Business Court. The Business Court are governed by Rules 352-359 of the Texas Rules of Civil Procedure.