The Texas Business Court has jurisdiction over high-dollar commercial and corporate governance disputes, generally those with more than $5 million at stake, and it shares that jurisdiction with the state’s district courts so parties can choose either forum. Created by House Bill 19 in the 2023 legislative session and open for cases since September 1, 2024, the court hears two broad categories of disputes, excludes several categories outright, and takes cases either by direct filing or by removal from a district court. A 2025 amendment lowered one of the key dollar thresholds, so the current rules differ from the statute as originally enacted.
Cases the Business Court Can Hear
Qualifying disputes fall into two tiers. The first covers an organization’s internal affairs. The second covers larger commercial transactions and contracts where the parties opted in.
Corporate Governance and Internal Affairs
When the amount in controversy exceeds $5 million, the court can hear disputes over how a corporation, LLC, partnership, or other Business Organizations Code entity is run. That includes derivative proceedings brought by owners on behalf of the entity, fights over governing documents and officer authority, securities and trade regulation claims against the organization or its officers, underwriters, or auditors, claims that an owner, officer, or manager breached duties of loyalty or good faith, attempts to pierce the corporate veil, and any action arising under the Texas Business Organizations Code.1State of Texas. Texas Government Code 25A.004 – Jurisdiction and Powers
Publicly traded companies get a carve-out worth noting. For these governance-related claims, the $5 million threshold does not apply to a publicly traded company. It can bring or face any of these claims in the business court regardless of the dollar amount.1State of Texas. Texas Government Code 25A.004 – Jurisdiction and Powers
Qualified Transactions and Opt-In Contracts
The second tier covers broader commercial disputes that need not touch an organization’s internal governance: actions arising out of a “qualified transaction” and contract disputes where the parties specifically agreed to business court jurisdiction. Insurance contract disputes are excluded from this tier even when the parties agreed to it.1State of Texas. Texas Government Code 25A.004 – Jurisdiction and Powers
The threshold for this tier moved. As originally enacted, HB 19 required more than $10 million in controversy. House Bill 40, signed during the 2025 session, lowered the qualified-transaction threshold to $5 million and allowed parties to aggregate related claims to reach that number.2Texas Judicial Branch. The Business Court of Texas Annual Report
How the Dollar Threshold Is Measured
The amount in controversy counts only the core claim value. The statute excludes interest, statutory damages, exemplary damages, penalties, attorney’s fees, and court costs from the calculation.1State of Texas. Texas Government Code 25A.004 – Jurisdiction and Powers A suit for $4 million in actual damages plus $2 million in requested fees does not meet the $5 million threshold, because the fees are not counted.
Injunctions and Declaratory Judgments
Within its jurisdiction, the business court can issue injunctions, writs of mandamus, and other emergency orders on the same footing as a district court, and it can enter declaratory judgments to resolve legal rights.1State of Texas. Texas Government Code 25A.004 – Jurisdiction and Powers
Cases the Business Court Cannot Hear
The statute draws two kinds of lines. Some categories are excluded on their own but may be heard when tied to a qualifying case. Others are off-limits under any circumstance.
Exclusions That Can Ride Along on a Qualifying Case
The court generally does not have jurisdiction over the following, but it may hear them as part of a larger qualifying dispute:
- Claims by or against a government entity
- Foreclosure actions on liens against real or personal property
- Deceptive trade practices claims under Chapter 17 of the Business and Commerce Code
- Estates Code claims
- Family Code claims, including divorce and custody
- Insurance Code claims and claims about duties or obligations under an insurance policy
- Consumer transaction disputes involving a Texas consumer and arising from a federal or state law violation
- Farm product disputes
- Property Code claims under Chapter 53 and Title 9
Absolute Exclusions
Three categories can never enter the business court, even when they are part of a larger qualifying case:
- Medical malpractice claims under Chapter 74 of the Civil Practice and Remedies Code
- Bodily injury or death claims seeking monetary damages
- Legal malpractice claims
When a lawsuit mixes qualifying claims with excluded ones, the court can sever the case so each part is heard in the correct forum.1State of Texas. Texas Government Code 25A.004 – Jurisdiction and Powers
Getting a Case Into the Business Court
A qualifying case reaches the business court in one of two ways: filing there originally, or removing a case already pending in district court or county court at law.
Filing Directly
An original action can be filed if the case falls within the court’s jurisdiction. All filings go through the eFileTexas system. The court charges a $137 supplemental filing fee on top of standard district court filing fees.3Texas Judicial Branch. Filing in the Texas Business Court
Removing a Pending Case
A qualifying case can be moved out of district court or county court at law by filing a notice of removal. The deadline depends on whether the parties agree:
- If all parties agree, the notice can be filed at any time during the case.
- Without full agreement, the notice must be filed within 30 days of when the removing party discovered, or reasonably should have discovered, the facts establishing business court jurisdiction. If a temporary injunction application is pending, the 30 days run from when that application is granted, denied, or denied by operation of law.
Removal does not restart existing deadlines under the Texas Rules of Civil Procedure. Scheduling order deadlines stay in place until the business court issues a new one, but all prior court settings are wiped out. The removing party must list any existing settings in the removal notice, and the parties then have 30 days from the notice of removal to submit a proposed scheduling order to the assigned judge.4Texas Judicial Branch. Local Rules of the Business Court of Texas
Remand
The business court can send a case back to the originating court on its own initiative if it concludes the filing was improper. Before doing so, it must give the parties 10 days’ notice and a chance to object.3Texas Judicial Branch. Filing in the Texas Business Court
Where the Court Sits
The court is organized into divisions in the state’s major commercial centers, with up to two judges each. As of 2025, five divisions are operating:
- Divisions 1A and 1B: Dallas
- Divisions 3A and 3B: Austin
- Divisions 4A and 4B: South Texas
- Divisions 8A and 8B: Fort Worth
- Divisions 11A and 11B: Houston
Who the Judges Are
Business court judges are not elected. The Governor appoints them with the advice and consent of the Texas Senate, and they serve two-year terms with eligibility for reappointment. Each judge must be a U.S. and Texas citizen, at least 35 years old, a resident of a county within the assigned division for at least five years, and have at least 10 years of experience practicing complex civil business litigation or transaction law, serving as a judge of a court with civil jurisdiction, or a combination of both.6Texas Judicial Branch. Judge Qualifications and Selection in the State of Texas
Where Appeals Go
Appeals from the business court do not go to one of the 14 regional courts of appeals. They go to the Fifteenth Court of Appeals, a statewide appellate court created alongside the business court. Its jurisdiction is exclusive over three categories: any appeal from a business court order or judgment, cases challenging the constitutionality or validity of a state statute or administrative rule, and civil cases brought by or against the state, a state board, commission, department, or other executive-branch agency, or their officers and employees acting in their official capacity.7Texas Judicial Branch. Courts of Appeals Certain matters are carved out of the state-agency category, including personal injury claims and eminent domain cases, which continue through the regional appellate courts. Above the Fifteenth Court, the Texas Supreme Court retains concurrent or exclusive jurisdiction over certain matters.