Texas-based companies are the targets of significantly more contract and personal injury disputes, but they are also twice as likely to sue other businesses than their national counterparts, according to a new survey of corporate legal departments by global law firm Norton Rose Fulbright.
The survey found that 75 percent of Texas businesses are defendants in one or more civil lawsuits — about the same number as a year ago and the same as the national average — but the lawyers at companies based in Texas faced fewer mass arbitrations. And Texas corporate in-house legal departments are significantly more cautious in their use of artificial intelligence tools, contract lawyers or non-law firm legal advisors.
Norton Rose Fulbright’s 21st annual Litigation Trends shows that the median number of lawsuits filed against Texas companies in 2025 was six — down from seven in 2024 but still more than the five cases reported by businesses in other states.
The survey found that companies in Texas and across the nation are increasingly concerned about so-called nuclear verdicts. More than 77 percent of corporate in-house leaders say that verdicts of $10 million or more are a growing concern.
Rachel Roosth, a litigation partner in Norton Rose Fulbright’s Houston office, said the “mix of the type of cases Texas companies are seeing are different” from those in other jurisdictions.
About 57 percent of Texas businesses reported being involved in contract disputes, which compares to 40 percent nationally.
About a third of the companies in Texas said they faced personal injury lawsuits, while only one in five nationally did so.
And the general counsel and the in-house heads of litigation in Texas reported filing two lawsuits in 2025 as the plaintiff, which is double the companies outside the state.
“Texas is trying to make itself more business friendly,” Roosth said. “The purpose of the new business courts is to have their disputes heard efficiently. The idea is to bring more business to Texas. If you have more business in Texas, then theoretically more business disputes can follow.”
The business courts, Roosth said, are “an alternative to arbitration,” which companies often find to be more expensive and lacking many legal protections offered by the courts.
The Norton Rose Fulbright study also found that:
- Thirty-two percent of national companies “employ software solutions to identify and mitigate risks” versus only 18 percent of Texas companies;
- Eighteen percent of Texas businesses use AI predictive analytics to spot risks, compared to 28 percent nationally;
- Sixty-one percent of in-house legal departments would consider using contract lawyers on litigation matters, while 83 percent nationally would do so;
- Fifty-five percent of national companies said they are using “alternative legal service providers” to address litigation, which is double the responses of Texas-based companies; and
- Only two percent of Texas businesses said they are concerned about litigation related to social justice or DEI issues in 2026, while the national response rate is five times that number.
“I’ve seen less activity and clients are less concerned about [environmental, social and governance] disputes, and they are seeking less advice on ESG-related disclosures,” Roosth said.