House Bill 19 At A Glance
House Bill 19’s divisions correspond with the exist- ing 11 administrative judicial regions. The divisions in Dallas, Austin, San Antonio, Fort Worth and Houston will begin work on Sept. 1, 2024, with two judges each. The other six divisions will have one judge apiece and begin work in 2026 if a legislative appropriation is spe- cifically made for that purpose. Otherwise, these six divisions are abolished on Sept. 1, 2026.
Included in Jurisdiction
- The list of jurisdictional grants is generally separated into three parts:
- business governance disputes,
- commercial disputes, and
- equitable relief.
- For business governance disputes, the business court has civil jurisdiction over actions in which the amount in controversy exceeds $5 million, unless a party to the action is a publicly traded company, in which case, there is no amount in controversy required.
- For commercial disputes, the business court has civil jurisdiction over actions in which the amount in controversy exceeds $10 million.
- The business court also has civil jurisdiction over actions seeking injunctive or declaratory relief, so long as they involve a dispute based on a claim within the court's jurisdiction under the previous sections.
- The court has "supplemental jurisdiction" over any related claims that are not within its jurisdiction but are part of the dispute—but only if all parties and the judge agree.
Excluded from Jurisdiction
- Unless the claim falls within the business court's supplemental jurisdiction (requiring all party agreement), the business court does not have jurisdiction of:
- actions brought by or against a governmental entity;
- actions to foreclose a lien;
- claims under the DTPA;
- claims under the Estates Code;
- claims under the Family Code;
- claims under the Insurance Code; >> claims under Title 9 of the Property Code;
- claims under Texas' covenants not to compete statute;
- claims related to mechanics and materialman's liens; >> claims arising from the production or sale of farm products;
- claims related to consumer transactions; or
- claims related to duties and obligations under an insurance policy.
- Regardless of whether or not a claim is within the court's supplemental jurisdiction, the court does not have jurisdiction of:
- medical or legal malpractice claims; or
- claims in which a party seeks recovery of monetary damages for bodily injury or death.
Judicial Qualifications
A business court judge must be: at least 35 years old; a U.S. citizen; a resident of a county within the division of the business court to which the judge is appointed for at least five years before appointment; and a licensed attorney in this state with 10 or more years of experience practic- ing complex civil business litigation, practicing business transaction law, serving as a judge of a court in this state with civil jurisdiction, or any combination of the three.
Judicial Selection
Business court judges will be appointed by the governor, with the advice and consent of two- thirds of the Senate, to a two-year term (as required by Art. XVI, § 16, Texas Constitution). A judge may be reappointed.
Note: The Fifteenth Court of Appeals has jurisdiction over appeals from the business court.
