A Year in Review: A Look at Texas’s New Business Court and Fifteenth Court of Appeals

by Gabrielle C. Smith

When Texas lawmakers created two new courts during the 88th Legislative Session in 2023—the Texas Business Court and the Fifteenth Court of Appeals—they promised to reshape the way complex commercial disputes and state-related appeals are handled in the state. On September 1, 2024, both courts officially opened their doors.

Now, one year later, we have the benefit of perspective. With hundreds of cases filed, a handful of key opinions, and legislative fine-tuning already underway, these courts are beginning to leave their imprint on Texas jurisprudence. Below, we look back at how these institutions were set up, what’s happened in their first year, and what businesses, litigants, and counsel should expect in the years ahead.

Setting the Stage: Why New Courts?

The legislative package creating these new court didn’t replace the state’s traditional trial or appellate courts, but rather added new venues designed for a particular category of cases—those involving complex commercial transactions or statewide regulatory issues that can span multiple jurisdictions. Through HB 19 (creating the Business Court) and SB 1045 (establishing the Fifteenth Court of Appeals), the Legislature authorized the formation of new forums to hear designated categories of cases.

The Business Court: How It Works

The Texas Business Court is a statewide trial-level court with jurisdiction over certain high-value and complex commercial disputes. To balance accessibility and specialization, it was divided into 11 divisions across Texas, though only five divisions were operational at launch in September 2024:

• Dallas (First Division)
• Austin (Third Division)
• San Antonio (Fourth Division)
• Fort Worth (Eighth Division)
• Houston (Eleventh Division)

Each division is staffed by two judges appointed by the Governor for two-year terms. A centralized clerk’s office in Austin manages filings and docketing, while individual divisions conduct hearings, trials, and case management. Recent changes include restructuring, particularly the addition of Montgomery County to the Eleventh Division and Bastrop County to the Third Division since both of those divisions are online and ready to handle disputes in these growing regions.

Jurisdiction is defined largely by subject matter and monetary thresholds. The court hears disputes involving significant business transactions, corporate governance, securities law, derivative actions, and certain intellectual property or trade secret claims. Originally, most categories required at least $10 million in controversy, but that threshold has since been lowered to $5 million under HB 40 during the 89th Legislative Session, which took effect September 1, 2025. HB 40 also broadened jurisdiction to cover arbitration-related matters and clarified that multiple related transactions can be aggregated to meet the threshold.

Notably, consumer cases remain outside the court’s reach, keeping the Business Court focused squarely on sophisticated commercial disputes.
The Fifteenth Court of Appeals: A New Appellate Forum

Running in parallel, the Fifteenth Court of Appeals was created to serve as the intermediate appellate court for:

• Cases involving the State of Texas, its agencies, or state officers acting in their official capacity;
• Challenges to the constitutionality or validity of state laws and regulations; and
• Appeals from the Business Court.

The Fifteenth Court opened with three justices, including a Chief Justice, and is expected to expand to five justices in the future. Like the Business Court judges, these justices were appointed, but unlike the Business Court judges, they will stand for election beginning in 2026.

The court’s creation has already been tested. Litigants quickly sought to route appeals of all types into the Fifteenth, hoping to take advantage of its statewide jurisdiction. The Texas Supreme Court shut the door on that approach in Kelley v. Homminga and Devon Energy Production Co. v. Oliver (March 2025). In those cases, the Court clarified that the Fifteenth Court’s jurisdiction is limited to its statutory categories and cases transferred by the Supreme Court to equalize dockets. In other words, it is not a catch-all appellate forum for every civil case in Texas.

The Texas Supreme Court continues to serve as the court of last resort for all civil appeals, including those originating from the Fifteenth Court. Over time, as more opinions are issued, practitioners expect the Fifteenth Court to play an increasingly visible role in shaping the interface between state agencies, regulated entities, and local governments across Texas.

A Year in Review: What We’ve Seen So Far
Filings and Activity

In its first year, the Business Court drew approximately 185 new cases across its five divisions. Unsurprisingly, filings were concentrated in Texas’s commercial hubs. Houston (Eleventh Division) led with the most cases, followed by Dallas (First Division), with the other operational divisions following. Early on, the court used its “docket equalization” authority—moving cases among divisions to balance workloads—though this practice slowed as divisions settled into their rhythms.

Early Jurisprudence

Although jury trials are on the horizon, the Business Court has already issued a meaningful set of written opinions—an intentional design feature to build a body of precedent. Issues addressed include:

Interpretation of “qualified transactions” and amount-in-controversy thresholds;
Aggregation of claims across related agreements;
Remand protocols where jurisdiction is lacking.
On the appellate side, the Fifteenth Court has begun issuing memorandum opinions and orders, clarifying its own jurisdiction and handling a steady diet of state-related appeals. Its early docket already reflects the importance of state agency litigation in Texas, including regulatory enforcement and constitutional challenges.

Legislative Tweaks: HB 40 and Beyond

One striking feature of the first year has been the legislature’s responsiveness. HB 40, passed in 2025, lowered jurisdictional thresholds, expanded the types of cases the Business Court can hear, and tasked the Texas Supreme Court with adopting rules to quickly resolve jurisdictional disputes.

These changes reflect feedback from the bench, bar, and business community: while the court is intended for “big business” disputes, the original $10 million threshold risked excluding too many meaningful cases. By lowering it to $5 million and expanding subject matter, lawmakers positioned the Business Court to play a broader role.

Future sessions may bring further refinements—particularly as data on caseloads, speed to resolution, and appellate outcomes accumulate.

Challenges on the Horizon

Despite a strong start, the new courts face a series of open questions:

• Caseload Distribution: Equalization tools may be important to avoid uneven burdens.
• Jury Trials: The first jury trial in Business Court has yet to occur, but there are a few cases set to go to trial before the end of this year. When they do, logistical and procedural wrinkles will be tested in real time.
• Forum Shopping: Litigants are already crafting pleadings and timing filings to gain (or avoid) Business Court jurisdiction. Courts will need to police these strategies without undermining flexibility.
• Precedential Development: Both courts are still building their reputations. Which opinions will carry precedential weight, and how consistently they are applied, will determine the long-term stability of this experiment.
• Elections: With judicial elections looming in 2026, voters will soon weigh in on the Fifteenth Court’s appointed justices. The electoral dynamic could shape not only who sits on the bench but how these courts are perceived in the broader political landscape.

Looking Ahead: What Clients Should Expect

As these courts continue to mature, clients should expect:

• More Divisions Online: The Business Court’s six inactive divisions may eventually come online, subject to funding and legislative priorities.
• Broader Jurisprudence: Published opinions will grow, especially in areas like fiduciary duty, corporate governance, securities disputes, and trade secrets.
• Faster Resolution of Threshold Issues: With the Supreme Court charged to adopt rules, litigants may soon see quicker determinations on whether their case truly belongs in Business Court.
• Election Dynamics: The 2026 elections will bring the first real test of how Texas voters view these courts.
• Continued Legislative Oversight: Just as HB 40 tweaked thresholds, future legislatures may adjust jurisdiction further as the courts’ performance becomes clearer.

Key Takeaways for Businesses

• Venue Strategy Matters: When filing suit—or when sued—analyze carefully whether your case fits Business Court jurisdiction. Filing choices may significantly affect timelines, judges, and appellate paths.
• Contracts Should Evolve: Consider incorporating Business Court forum-selection clauses where appropriate, especially in large commercial transactions.
• Stay Informed: The jurisprudence is young, but precedents are emerging. Tracking Business Court opinions and Fifteenth Court rulings is essential for risk assessment and litigation strategy.

Closing Thought

Texas’s Business Court and Fifteenth Court of Appeals are still in their infancy, but they are already reshaping the litigation landscape. Designed to bring specialization, predictability, and efficiency to complex disputes, they also raise new strategic considerations for businesses and counsel alike.

One year in, the story is less about final answers and more about a legal system in motion. As the jurisprudence develops, elections approach, and legislative refinements continue, these courts will only grow in influence. Entities that understand and adapt to this evolving environment will be best positioned to navigate Texas’s new judicial terrain.

Gabrielle Smith is a Principal in the Firm’s Litigation Practice Group. If you have questions related to this article or other litigation matters, please contact Gabrielle at 512.322.5820 or gsmith@lglawfirm.com.