Texas Lawyer Highlights Sullivan's Analysis of Texas' Business Court: A 60-Day Impact Review

 

Ryan Sullivan

Counsel Ryan Sullivan examines the developments in Texas' Business Court in his Texas Lawyer article, "Texas' New Business Court: What We've Learned From Its First 2 Months."

Highlights include:

  • Houston Division Has More Cases Than any Other Division

  • Texas Business Court's Caseload Has Outpaced That of Other States' Business Courts

  • The Business Court Issues Its First Opinion on Jurisdiction

  • The Local Rules Require Short Briefs

The court is designed to efficiently manage business disputes, with jurisdiction over governance disputes exceeding $5 million and commercial disputes over $10 million. It operates across five divisions located in Austin, Houston, San Antonio, Dallas, and Ft. Worth.

In its first 60 days, the court has seen significant activity, with 37 active cases. The distribution of cases is notably high in Houston, reflecting its large number of Fortune 500 companies. The Texas Business Court's caseload has exceeded that of other recently established business courts, suggesting strong interest from litigants.

A pivotal aspect of the court's early operations is Judge Whitehill's ruling on jurisdiction, which specifies that only cases filed on or after September 1, 2024, are eligible for the Business Court. This decision could significantly reduce the number of cases currently before the court, as it impacts nearly half of the cases originally removed to the Business Court.

Additionally, the court’s local rules impose strict limits on the length of legal briefs, aiming to enhance efficiency in case resolution. However, these restrictions pose challenges for complex business litigation, potentially leading to frequent requests for exceptions.

Read the full article on Texas Lawyer [note: subscriber access only].

 
Angelica CrisiReichman Jorgensen Lehman & FeldbergEvent