The Texas Business Court has been up and running for 100 days. Here is what has happened so far:

There have been 53 cases filed in the Business Court to date, with the Eleventh Division in Houston receiving more cases than all other divisions combined:

• Eleventh Division (Houston)—29 cases
• First Division (Dallas)—13 cases
• Fourth Division (San Antonio)—4 cases
• Third Division (Austin)—4 cases
• Eighth Division (Ft. Worth)—3 cases

Eleven cases have since been closed.

Decisions Regarding Removal

Approximately one-third of the cases filed are removals to the Business Court of cases pending in Texas district courts prior to September 1, 2024. Five of the 10 Business Court judges have issued opinions concluding that pre-September 1, 2024, cases are not subject to removal to the Business Court. The decisions rely on the language in Section 8 of House Bill 19 (the enabling legislation), which states that the “changes in law made by this Act apply to civil actions commenced on or after September 1, 2024.” At least eight cases were remanded on this ground by court order or the agreement of the parties. 

Two appeals have been initiated in the Fifteenth Court of Appeals challenging this conclusion.

Other Rulings

Beyond the decisions on removal, there have been few other rulings to come out of the Business Court in the first 100 days. This is unsurprising given the early posture of these cases. Based on the current case dockets, it is expected that the next 100 days will bring scheduling conferences, resolution of discovery disputes and much more motion practice.

Local Rules

The Business Court adopted local rules that include detailed requirements for motion practice (especially discovery motions), as well as mandatory corporate disclosures. The local rules also provide an important clarification regarding consent to supplemental jurisdiction. A party will be deemed to consent to supplemental jurisdiction unless the party objects or moves to sever within 30 days after the later of (1) the party’s appearance in the action or (2) the filing of the first pleading or removal notice containing fair notice of the claim.

Docket Equalization

In late November, Administrative Presiding Judge Dorfman issued summary orders assigning four cases pending in the Eleventh Division (Houston) to the Fourth Division (San Antonio) “in order to equalize dockets within the Texas Business Court and to promote the orderly and efficient administration of justice.” The cases themselves were not transferred from the Eleventh Division to the Fourth Division. Instead, Fourth Division judges Sharp and Barnard were assigned to handle all proceedings, including final trial of these Eleventh Division cases. 

Post-equalization (and assuming continued remand of cases pending pre-September 1), each judge will have between one and eight pending cases on his or her docket.

What to Expect Next . . .

There are efforts underway to file legislation in the upcoming 2025 Texas Legislature to, among other things, reduce the minimum amount in controversy for suits arising from “qualified transactions” from $10 million to $5 million, expand the types of commercial disputes that come within the Business Court’s jurisdiction, and extend the judges’ terms from two to six years.