Legislature’s Expansion of the Business Court Proves Lone Star State’s Commitment to Commercial Justice
Nine months ago, skeptics questioned whether Texas’ ambitious new business court would survive infancy. The specialized tribunal, which began operations Sept. 1, 2024, faced early criticism over its narrow jurisdiction, steep amount in controversy requirements and procedural uncertainties — all of which threatened to limit the court’s effectiveness as a forum for many business disputes. The Texas Legislature has now resolved many of these doubts and doubled down on its judicial innovation. On June 1 — in the final hour of the final day of the legislative session — the Legislature passed House Bill 40 with significant support, considerably expanding the Texas Business Court’s jurisdiction. The law demonstrates Texas’ commitment to position itself as the premier destination for business litigation.