Across the country, courts are grappling with a new wave of pressures, from foreign-funded lawsuits to record-setting “nuclear” verdicts, that threaten to drive up costs and erode public trust in the justice system.
Texas remains a national model for reform but staying that way requires constant vigilance. The very success that once made our courts fairer and more predictable has drawn new challenges: outside investors, inflated verdicts, and efforts to undermine the balance Texans fought to build.
This week, we’re looking at two stories that capture both the progress Texas has made and the dedication it will take to protect it, from the early success of the Texas Business Court to the growing threat of foreign influence in U.S. litigation.
What Happened: Barely a year after opening its doors, the Texas Business Court is exceeding expectations. With more than 220 cases filed across the state’s five largest cities, the court has quickly become a focal point for resolving complex corporate disputes. Law firms like Jackson Walker, Baker Botts, and Norton Rose Fulbright are expanding litigation teams to handle the new caseload—proof that Texas’s reputation as a national leader in business-friendly reform continues to pay dividends.
The new venue offers something Texas had long lacked: a specialized forum for high-stakes commercial cases that once defaulted to arbitration or clogged traditional district courts. Designed to promote speed, efficiency, and consistency, the court is already viewed as a competitive alternative to Delaware’s Chancery Court. Read More
Tell Me More: One Houston Judge notes the court’s launch “wildly exceeds anybody’s expectations.” Roughly half the filings originate in Houston and a quarter in Dallas, with several Fortune 500 companies turning to the new court. The first jury trials are expected within the year, and cases are moving to trial in as little as 18 months, compared with up to four years in traditional venues.
TLR Thoughts: The rapid success of the Texas Business Court underscores what three decades of civil-justice reform have made possible, a legal environment where businesses can resolve disputes fairly and efficiently. Yet the very demand now driving record filings is also a reminder that Texas must stay vigilant. As other states wrestle with litigation backlogs and runaway verdicts, Texas’s continued leadership will depend on maintaining balance, transparency, and accountability in every courtroom.
What Happened” Former Congressman Dick Armey warns that foreign-backed lawsuit investments, especially from China, pose a growing national security and economic threat. Through litigation funding, foreign entities bankroll U.S. lawsuits in exchange for a share of the winnings. In some cases, these investors operate through layers of shell companies, hiding their involvement from judges, defendants, and the public.
As Armey notes, the lack of disclosure allows state-controlled enterprises to secretly manipulate American courts, turning the justice system into a tool for foreign interests rather than fairness. Read More
Tell Me More: Despite bipartisan concern, Congress recently missed a chance to act. The Tackling Predatory Litigation Funding Act, which would have taxed foreign litigation profits and added transparency requirements, was stripped from a broader spending package earlier this year. National security officials, from CIA Director John Ratcliffe to Secretary of State Marco Rubio, have called for stronger oversight, warning that unchecked foreign investment in lawsuits could distort markets and compromise U.S. economic stability.
A separate proposal, the Litigation Transparency Act by Rep. Darrell Issa, would require all litigation funders to disclose their involvement—a basic reform advocates say is critical to restoring public trust.
TLR Thoughts: For more than three decades, TLR has championed reforms to keep Texas courts fair, transparent, and focused on justice, not profit. Now, as foreign entities seek to use America’s courts for economic gain, the same principles that guided Texas’s reforms must inform federal action.
Transparency and accountability are not partisan issues—they’re essential safeguards against turning our justice system into another arena for global gamesmanship.
That’s the estimated per-household cost of tort litigation in the United States, a share of the $529 billion annual burden of lawsuit abuse across the country
Every dollar spent fighting inflated or abusive lawsuits is a dollar taken from families, small businesses, and local economies.
Texas built its reputation as a national model by standing up to lawsuit abuse and restoring fairness in our courts. That progress didn’t happen by accident; it came from decades of vigilance and reform led by Texans who refused to let the civil justice system be exploited for profit.
But the threats are evolving. From foreign-backed litigation funding to rising costs driven by “nuclear” verdicts, the fight for balance in our courts continues.
Texans for Lawsuit Reform will stay on the front lines, exposing new abuses, defending hard-won reforms, and ensuring Texas remains the nation’s benchmark for justice, accountability, and economic strength.
