What Is the Texas Business Court?

States throughout the country compete to bring businesses within their borders. Many enticements are used to lure small and large companies to a particular location, including tax benefits, favorable zoning and the promise of improved infrastructure. In some situations, a stable, business-friendly legal environment is a strong drawing card. 

Texas followed the lead of approximately 30 other states by establishing a Business Court in 2024. Currently comprised of 10 judges across the state, the Business Court is authorized to adjudicate commercial litigation matters where the amount in controversy is at least $5 million. Judges are selected based on their skill and experience handling complex business cases. 

Given their background and ability to focus exclusively on commercial matters, the judges should be able to resolve sophisticated issues in this area of law with more speed and consistency. In the closing weeks of the 2025 legislative session, Governor Greg Abbott signed SB29, a measure that dovetails with the Texas Business Court by strengthening protections for board decision-making and giving companies more control over where and how internal disputes are heard.

Unlike the past, when a single shareholder was able to commence legal action challenging a good-faith decision of a corporation’s board of directors, the new Texas law now only permits these claims when at least 3 percent of shareholders take part. 

Though not originally within its purview, the Business Court is now empowered to preside over complex intellectual property disputes where there is state court jurisdiction. This includes lawsuits brought pursuant to the Texas Uniform Trade Secrets Act.

As Texas aims to attract businesses from Delaware and other locations, there might be additional changes affecting business litigation. Though the Business Court has statewide jurisdictions, judges currently sit only in the following five cities: Dallas; Fort Worth; Houston; Austin and San Antonio. Companies might revise their internal and external practices so that more matters go before the Business Court, so it is possible that the roster of jurists expands. 

The knowledgeable attorneys at Grob & Associates Law Firm PC advocate for clients in various types of Texas business litigation cases. To discuss your particular issue, please call us at 972-777-5701 or contact us online. Our offices are in Rockwall and Wylie.