What happened: Businesses are moving out of Delaware as its courts impose unpredictable legal rulings that undermine corporate confidence, with Texas positioning itself as a stable alternative. In Gov. Greg Abbott’s words: “The Lone Star State is open for business.” 

Tell me more: Delaware’s Chancery Court has shifted away from its long-standing business-friendly approach, increasingly interfering with shareholder-approved decisions and corporate governance. 

• Texas, by contrast, is luring companies to the state with the newly established Texas Business Court—the state’s first new court system in more than half a century.
• In 2023, TLR worked hard to ensure the enactment of legislation creating a specialized business court in Texas that would handle complex business-to-business litigation—a major economic development tool for the state—as well as the Fifteenth Court of Appeals, which handles appeals for the business court and important cases involving the State of Texas.
• In February 2025, Gov. Abbott celebrated the New York Stock Exchange’s (NYSE) announcement that it is establishing NYSE Texas in Dallas. Nasdaq, another major stock exchange, also has a presence in Texas, and the TXSE Group is working to set up the Texas Stock Exchange in the state as well.

In his own words: “Delaware may go to hell, but businesses should come to Texas. Here, the American dream lives on.” —Gov. Greg Abbott

TLR Thoughts: This session, TLR is working with the Texas Legislature to further enhance the Texas Business Court and to protect companies from unnecessary litigation—so that Texas can cement its status as the best place in the nation to live, work and do business. On March 4, TLR joined the Texas Stock Exchange and the Alliance for Corporate Excellence in applauding the filing of Senate Bill (SB) 29 by Sen. Bryan Hughes (R-Mineola) and companion House Bill (HB) 15 by Rep. Morgan Meyer (R-University Park). The legislation would codify the “business judgment rule,” ensuring the Texas courts cannot second-guess decisions made by disinterested members of corporate boards. 

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