The enactment of Texas House Bill 19, establishing a statewide business court, marked a significant moment for the Lone Star State’s legal climate. The law will take effect on September 1, 2023, and the business court will start accepting cases from September 1, 2024. The new business court will provide a specialized court for complex business-related cases. It will reduce overcrowding and backlogs by placing these cases in a specialized court, freeing traditional trial courts to address their regular dockets. The business court promises to have a positive impact on businesses and the overall economic and legal landscape of Texas.
Streamlining Business-Related Litigation
The business court is a specialty trial court, which will exclusively handle certain types of complex business and commercial cases. This court will play a crucial role in streamlining the litigation process and providing more efficient resolution of business-related disputes.
Judges appointed to the business court will be required to have at least 10 years of experience in complex civil business litigation, business transaction law, or as a judge with civil jurisdiction. These requirements ensure that the business court will be presided over by judges with the expertise to understand and adjudicate complex business matters.
Texas’ Fifteenth Court of Appeals will have exclusive jurisdiction for appeals of cases from the business court. This appeals process will follow the same general procedures as other cases while ensuring consistency and clarity in appellate decisions on cases from the business court.
Enhancing the Legal and Business Environment
The new business court will generally improve access to justice in Texas by removing complex business matters from the general jurisdiction court dockets–alleviating some court congestion for everyone. Additionally, the establishment of a business court should serve as a compelling reason for businesses looking to expand to business-friendly states.
ILR applauds and was pleased to partner with the in-state groups that led the effort to enact HB 19, including Texans for Lawsuit Reform, the Texas Association of Business, and the Texas Civil Justice League. Texas is the 30th state to establish a dedicated business court, ensuring businesses and consumers have access to a fair, efficient, and specialized forum to address their legal disputes. The remaining 20 states should follow suit.
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