On the final day of its 89th legislative session, the Texas Legislature passed H.B. 40, expanding the jurisdictional and operational framework of the Texas Business Court. The bill has since been signed by Gov. Greg Abbott and becomes effective on Sept. 1.
The new law builds on Texas' 2023 initiative to establish a specialized forum for complex business litigation comparable to the Delaware Chancery Court and makes that forum more accessible to corporate litigants.
The most significant statutory changes include amendments to reduce the monetary threshold for invoking the Business Court's jurisdiction and to expand the category of case types that may be heard.
The bill's amendments, coupled with broader national conversations around litigation costs and court specialization, support the court playing an increasingly important role in the national corporate governance and commercial litigation landscape.
"Business Court Bill Furthers Texas' Pro-Corporate Strategy," Law360, July 16, 2025
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Katten Partner James C. Bookhout, Senior Counsel Missy Apodaca, and Partner Kenya S. Woodruff contributed to this article.
