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Will Texas companies need to resolve their differences in business-only courts in the future?

| Mar 25, 2021 | Business Disputes

Many states’ lawmakers, including those in Texas, have in recent years considered setting up a business-only court system like the Chancery Court in Delaware. Proponents of Texas’ newly introduced House Bill 1875 aim to see this plan come into fruition. So, too, does Governor Greg Abbott, who recently announced his plans to address the issue during budgetary discussions in 2022.

Lawmakers have cited various factors as motivating them to set up this court system. While many of these bill’s supporters envision Texas’ proposed business court as mimicking some aspects of Delaware’s Chancery Court, they note that there will be many uniquely Texan aspects to it.

Benefits associated with business-only court systems

At least 27 states had specialized court systems in place as of late 2015, each of which provided a forum for businesses to resolve any lingering disputes. Many jurisdictions that have these court systems in place created them intending to clear up judge’s dockets of often-complex and time-consuming business cases so that they’d have more space to hear civil or criminal matters.

Many proponents of this court system have argued that companies often can’t afford to have litigation drag out as long as it does in the existing judicial forums. They contend that a specialized court system would allow for a swifter resolution to their cases and motivate others to incorporate in Texas.

How might Texas’ business-only court system differ from others?

One lawmaker who has been busy forwarding the idea of Texas’ business courts notes that the Lone Star state’s system would still require juries instead of judges to decide questions of fact, unlike how Delaware’s Chancery Court currently functions.

He also points out that Texas would be the first state to create a separate court of appeals that exclusively handles business matters.

Another unique aspect of Texas’s business-only court is that it wouldn’t have any jurisdiction over any Texas Deceptive Trade Practices Act, wrongful death or other personal injury or any government entity lawsuits.

How to proceed if your company has an unresolvable dispute

Many Texas companies try and fail to resolve their differences without having to get attorneys involved. An attorney here in Houston can help you determine what steps you should pursue next in your case to get a resolution once and for all.

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