By Chris Bankler

The Texas Legislature has refined the structure and jurisdiction of the Texas Business Court through amendments signed by Governor Abbott on June 21, 2025. The changes aim to broaden the court’s authority, streamline complex proceedings, and ensure judges have ample tools to handle high-stakes commercial disputes. Below, we summarize the most notable developments and offer practical insights on what businesses should expect moving forward.

Lowered Jurisdictional Threshold and Broader Access

The most significant change is the reduction of the amount-in-controversy threshold from $10 million to $5 million for most cases. This lower threshold, combined with the ability to aggregate “the total amount of all joined parties’ claims”—including counterclaims and cross-claims—means that a much wider range of business disputes can now qualify for Texas Business Court jurisdiction. Notably, the amendments also clarify that a series of related transactions can be aggregated to meet the $5 million minimum, making it easier for parties to bring complex, multi-faceted disputes before the court.

Why it matters: More business disputes—especially mid-size and high-value cases—can now be resolved in a forum built specifically for commercial litigation. This expansion is designed to encourage more filings and ensure that the Texas Business Court becomes the go-to forum for significant commercial litigation in Texas.^[1]

New Types of Cases Are Now Covered

The Texas Business Court’s jurisdiction has been significantly broadened to include a wider array of business disputes. In addition to traditional governance, fiduciary duty, and securities matters, the court now expressly covers intellectual property disputes—including those involving patents, trade secrets, software, data security, and biotechnology—provided the monetary threshold is met. The court also has jurisdiction over business, commercial, and investment contracts or transactions (excluding insurance contracts) where the parties have agreed to Texas Business Court jurisdiction, as well as claims involving violations of the Texas Finance Code or Business & Commerce Code by organizations or their officers.

Why it matters: The Texas Business Court now offers a specialized venue for certain investment and IP cases that did not previously qualify.

Arbitration-Related Proceedings

The Texas Business Court’s expanded jurisdiction now includes actions to enforce arbitration agreements, appoint arbitrators, and review arbitral awards, provided the underlying dispute falls within the court’s subject-matter jurisdiction. This change gives parties greater flexibility and predictability in resolving arbitration-related issues, especially in high-value or complex commercial matters.

Practical Takeaways

1. Leverage the Expanded Jurisdiction. Businesses and counsel should proactively consider the Texas Business Court for a broader range of disputes, now including those involving intellectual property, trade secrets, business torts, and complex commercial contracts. The lower $5 million threshold and aggregation of related claims or transactions make it easier than ever to qualify. Evaluate whether related claims, parties, or transactions can be joined to meet the $5 million threshold, thereby bringing more matters within the Texas Business Court’s reach.
2. Draft Contracts to Maximize Access. When negotiating business, commercial, or investment contracts, include provisions specifying Texas Business Court jurisdiction for eligible disputes. This ensures access to a specialized forum and takes advantage of the Texas Business Courts’ expertise.
3. Stay Informed on Texas Business Law Developments. The Texas Business Court system is new and evolving. Keep an eye on new decisions, procedures, and strategic litigation updates at TexasBusinessCourts.com

Conclusion

Texas is all in on its new Business Court system. With more cases now eligible and the bar to entry lower than ever, expect a steady stream of commercial disputes to flow into these specialized courts.

For Texas companies and investors, this means faster resolutions, greater predictability, and judges with deep experience in business law. Now is the time to update your contracts, revisit your litigation strategy, and consider the Texas Business Court as the go-to forum for your most important business disputes.

[1] While the amendments now allow for the transfer of cases filed before September 1, 2024, into the Texas Business Court if all parties and the court agree, this is a limited exception. The primary focus of the new legislation is to encourage more new and pending cases to be filed directly in the Texas Business Court under its expanded jurisdiction.

The opinions expressed are those of the authors and do not necessarily reflect the views of the firm, its clients, or any of its or their respective affiliates. This article is for informational purposes only and does not constitute legal advice. For more information, please contact Chris Bankler or a member of the Trial & Appellate Litigation practice.

Meet Chris

Chris Bankler focuses on the resolution of disputes for businesses and financial institutions. He counsels clients through the process of complex business litigation, including general business disputes, fraud claims, breach of fiduciary duty cases, and complex business bankruptcy litigation. He has served as litigation counsel in more than 100 cases in state and federal courts, as well as FINRA and AAA arbitrations.