[Image: Sinisa Vidic/istockphoto]
Texas is changing its judicial landscape with the opening of a new Specialized Business Court Division in September following the enactment of House Bill 19 last year.
The bill, signed into law by Governor Greg Abbott in June 2023, would create specialized business courts across the state to streamline the resolution of business disputes. Governor Abbott said the courts would provide an “efficient mechanism” for commercial litigation in Texas.
Dallas, Fort Worth, Austin, Houston and San Antonio will open the first of 11 new business court divisions across the state.
The five urban center business courts are scheduled to open in September 2024. According to a news release from the governor’s office, the measure is expected to reduce the burden on traditional courts and speed up litigation across the state. The Austin-based 15th Court of Appeals, a statewide intermediate appellate court that handles appeals from business courts, is also set to open in September.
Joins 30 other states with specialized business courts
The creation of six additional departments serving more rural areas of Texas has been delayed until the 2025 Texas Legislature for approval and funding.
Texas will join about 30 states that have some form of such specialized courts, and Abbott said the new courts will help Texas continue to lead the way in creating a favorable business climate.
The governor and supporters of the state’s new specialized business court system say it will meet the needs of the growing volume and complexity of business litigation and provide businesses with a more cost-effective means of resolving disputes.
Texas Business Court Jurisdiction Model
The new Texas Business Court has jurisdiction over certain types of complex commercial disputes, such as derivative actions, securities actions, breach of fiduciary duty cases, and business transactions where the amount at stake exceeds a certain threshold (which varies depending on the type of case, but is typically $10 million). However, the court does not hear medical malpractice, personal injury, or legal negligence claims.
House Bill 19 also includes a provision to transfer eligible cases from district or county courts to the Texas Business Court, allowing cases to benefit from the expertise of commercially focused judges.
“Appointing a judge with expertise in commercial law will provide a more predictable and efficient process for resolving business disputes that are vital to our economic growth,” Governor Abbott said in a statement.
Abbott recently announced that he would appoint judges to the Dallas-Fort Worth division of the courts, effective Sept. 1, to two-year terms with the possibility of reappointment.
Dallas Business Court Appointments
Dallas Business Court Division 1 serves Collin, Dallas, Ellis, Fannin, Grayson, Kaufman and Rockwall counties. Andrea Bressa and William “Bill” Whitehill have been appointed judges.
Bressa currently serves as a judge in the 471st Judicial District Court and has been recognized for his contributions to the legal profession. Whitehill, who was appointed alongside Bressa, is a former judge on the Texas Court of Appeals for the Fifth Circuit and a member of the law firm Condon, Tobin, Sladek, Thornton & Nerenberg.
Fort Worth Business Court Appointments
Fort Worth’s Business Court Division 8 serves Archer, Clay, Cook, Denton, Eastland, Erath, Hood, Jack, Johnson, Montague, Palo Pinto, Parker, Somervell, Stevens, Tarrant, Wichita, Wise and Young counties. Jerry Bullard and Brian Stagner have been appointed judges.
Mr. Bullard is a shareholder and attorney at Adams, Lynch & Loftin LLP and has more than 30 years of experience litigating in state and federal courts. Mr. Stagner is of counsel at Kelly, Hart & Holman LLP and is an adjunct professor at Texas Christian University.
This appointment is part of a larger series of judicial appointments made by Governor Abbott this month to new business courts in Houston, San Antonio and Austin, Texas.
Earlier this year, Texas Lawbook reported that at least 20 people had applied for appointment to the new Business Court and the 15th Circuit Court of Appeals.
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