Texas Moves to Establish New Business Court System for Disputes

According to news sources, Texas lawmakers are working to make business disputes easier for companies and lawyers. Governor Greg Abbott introduced a bill that would allow the state to have its own business court system, which are trial courts that hear business disputes. Business attorneys said solving disputes out of state can get expensive because of living costs and businesses being placed on hold.

They say if this law passes, judges, lawyers, and business owners can benefit from it. Note: unlike many other states, Texas does not have its own business court system despite previous attempts in previous legislative sessions to establish one.

“I never had a business owner that I represent be excited to go into litigation. It’s stressful, it’s expensive, it takes years in some cases,” said business attorney of Blanchard & Thomas, LLP John Morkovsky.

House Bill 19 would create an exclusive business court system to solve disputes within Texas, instead of taking legal action elsewhere.”A complex business case can take anywhere from several, several months to several, several years. And hundreds of thousands, if not million dollars in fees,” said Morkovsky. Without a state business court system, clients would have to pause their organization since district court judges take on business cases on top of many others.

However, according to the bill, there would be appointed judges to oversee business cases. Morkovsky said another expensive factor is the client having to pay for lawyers’ living costs when they’re out of state.

”It’s going to jack up fees for clients. The business owners are going to have to spend more on feeding you, putting you up in hotels, for hearings, for however long it takes to be out of state,” said Morkovsky.

He said if the bill passes, it could keep the state competitive.

“It would keep Texas competitive for business owners to keep their entities in and form their entities in as opposed to Delaware or other states that had these systems set up for quite a while,” said Morkovsky.

So Texas has so many business disputes that they require their own court system. No real surprise since disputes are EVERYWHERE! And when those things negatively impact YOU and/or YOUR business including bankruptcies, landlord/tenant matters including unlawful detainers, contract issues, nuisance ADA claims and even collections, call in your good guy business litigator, Dean Sperling to resolve YOUR matter with YOUR best interests in mind! 

More on the case: