Texas Business Court Powers
The Texas Business Court has all of the power of the District Courts of Texas including the power to issue writs of injunction, mandamus, sequestration, attachment, garnishment, and supersedeas; and to grant any relief that may be granted by a district court. Sec. 25A.004.(a)
Texas Business Court Jurisdiction
The Texas Business Court has concurrent jurisdiction with the District Courts of Texas for civil actions involving publicly traded companies or private entities in which the amount in controversy exceeds $5 million (excluding interest, statutory damages, exemplary damages, penalties, attorney’s fees, and court costs) in the following actions:
(1) a derivative proceeding (which is a lawsuit brought by a shareholder on behalf of a corporation against a third party, typically the corporation’s executives or directors) Sec. 25A.001;
(2) an action regarding the governance, governing documents, or internal affairs of an organization;
(3) an action in which a claim under a state or federal securities or trade regulation law is asserted (4) An action against an owner, controlling person or manager, alleging wrongdoing (act or omission) in their official capacity.
(5) an action alleging that an owner, controlling person, or managerial official breached a duty owed to an organization, including the breach of a duty of loyalty or good faith;
(6) an action seeking to hold an owner or governing person of an organization liable for an obligation of the organization; and
(7) an action arising out of the Business Organizations Code.
Additionally, the Texas Business Court has concurrent jurisdiction with the District Courts of Texas for civil actions involving in which the amount in controversy exceeds $10 million in the following actions:
(1) an action arising out of a qualified transaction (a transaction, under which a party pays, receives, lends or borrows at least $10 million)
(2) actions arising out of a contract in which the parties agreed that the business court has jurisdiction; and
(3) actions arising out of a violation of the Finance Code or Business & Commerce Code
Finally, the Texas Business Court may have supplemental jurisdiction over any other claim related to a case or controversy within the court’s jurisdiction that forms part of the same case or controversy with the agreement of all parties to the claim and a judge. Sec. 25A.004(f)
The Texas Business Court does not have jurisdiction (unless through agreed supplemental jurisdiction) of actions brought by a governmental entity, foreclosures, deceptive trade practices, estates, family law, insurance, real property, farm products or consumer products, medical liability, bodily injury or death, or legal malpractice. Sec. 25A.004(g)
Texas Business Court Pleading and Case Initiation
Actions filed in the Texas Business Court must plead facts to establish jurisdiction and venue, which may be established as provided by law or, specified by written contract. Actions without proper venue or jurisdiction shall be transferred. Sec. 25A.006(a)-(c).
If an action is filed in a district court or county court at law that is within the jurisdiction of the Texas business court, a party may remove the action to the Texas business court. Sec. 25A.006(d).
Appeals
Appeals from orders and judgments of the Texas Business Court shall be lodged with the Fifteenth Court of Appeals which has exclusive jurisdiction. Sec. 25A.007.(a)