DALLAS — There are no official courtrooms just yet.
And there aren’t even enough judges.
But the new business court in Texas is up and running, and experts say it will dramatically change the legal landscape for big business in Texas
David Harper specializes in business law, and is a member of the board of directors with the giant Texas law firm Haynes and Boone.
“Just like your podcast, Y'all Street is a big deal, right? And here, the Governor, the Legislature, they're all thinking one of the key components to get all that business here into Texas is to make sure that we have that kind of court system like Delaware has, hopefully, to try to get more even more business to locate here,” attorney David Harper told us on Y’all-itics.
Launched on Sept. 1, the business court is designed to take some of the burden off of the normal court system, and complex cases involving big business will now go before judges with experience in business law.
Before this, all of those cases would be found in district courts, which are already overloaded with thousands of cases.
11 geographical divisions make up the court, with the five divisions covering Texas’ largest cities and their surrounding counties already operational.
More than half of the states already have business courts, with Delaware’s the most famous of all.
More than half of all publicly traded U.S. companies and more than 60% of Fortune 500 companies are incorporated, or legally located, in Delaware.
Texas, already known as one of the country’s most friendly states for business, expects the new business court to do even more than simply attract companies to incorporate in Texas.
“Texas wants to not just have companies incorporate here, but locate here," Harper said. "And part of that is having the courts that go along with that like Delaware, so that you get that business into Texas."
And that’s why Harper says you should care if you don’t own a business or you’re not an attorney.
The business court is one more tool in our bag of tricks to attract more business. In fact, Harper says Texas is behind 30 other states for not having a business court already.
Businesses want the court because it will help resolve complex legal issues, and likely speed up some of their cases that can involve large sums of money.
“And these big cases take a lot of time, a lot of attention and some expertise. And it's hard for them to get the kind of attention. And so then, these big companies, if they've got $100 million dispute, they say well, wait, I'm going to get, I'm going to be in line with like 100 car wrecks and get that kind of attention? That’s not what they want, right. And this is too big of a matter to kind of put in that situation,” Harper explained.
The business court will also play a significant role in the new Texas Stock Exchange, nicknamed “Y’all Street,” which is expected to formally launch late next year and begin trading in early 2026.
To learn more, listen to the entire episode. Cheers!