Tex. Gov't Code Section 25A.004
Jurisdiction and Powers


(a)

Subject to Subsections (b), (c), (d), (e), and (f), the business court has the powers provided to district courts by Chapter 24 (District Courts), including the power to:

(1)

issue writs of injunction, mandamus, sequestration, attachment, garnishment, and supersedeas; and

(2)

grant any relief that may be granted by a district court.

(b)

Subject to Subsection (c), the business court has civil jurisdiction concurrent with district courts in the following actions in which the amount in controversy exceeds $5 million, excluding interest, statutory damages, exemplary damages, penalties, attorney’s fees, and court costs:

(1)

a derivative proceeding;

(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 against:

(A)

an organization;

(B)

a controlling person or managerial official of an organization for an act or omission by the organization or by the person in the person’s capacity as a controlling person or managerial official;

(C)

an underwriter of securities issued by the organization; or

(D)

the auditor of an organization;

(4)

an action by an organization, or an owner of an organization, if the action:

(A)

is brought against an owner, controlling person, or managerial official of the organization; and

(B)

alleges an act or omission by the person in the person’s capacity as an owner, controlling person, or managerial official of the organization;

(5)

an action alleging that an owner, controlling person, or managerial official breached a duty owed to an organization or an owner of an organization by reason of the person’s status as an owner, controlling person, or managerial official, 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, other than on account of a written contract signed by the person to be held liable in a capacity other than as an owner or governing person; and

(7)

an action arising out of the Business Organizations Code.

(c)

The business court has civil jurisdiction concurrent with district courts in an action described by Subsection (b) regardless of the amount in controversy if a party to the action is a publicly traded company.

(d)

The business court has civil jurisdiction concurrent with district courts in the following actions in which the amount in controversy exceeds $10 million, excluding interest, statutory damages, exemplary damages, penalties, attorney’s fees, and court costs:

(1)

an action arising out of a qualified transaction;

(2)

an action that arises out of a contract or commercial transaction in which the parties to the contract or transaction agreed in the contract or a subsequent agreement that the business court has jurisdiction of the action, except an action that arises out of an insurance contract; and

(3)

subject to Subsection (g), an action that arises out of a violation of the Finance Code or Business & Commerce Code by an organization or an officer or governing person acting on behalf of an organization other than a bank, credit union, or savings and loan association.

(e)

The business court has civil jurisdiction concurrent with district courts in an action seeking injunctive relief or a declaratory judgment under Chapter 37 (Declaratory Judgments), Civil Practice and Remedies Code, involving a dispute based on a claim within the court’s jurisdiction under Subsection (b), (c), or (d).

(f)

Except as provided by Subsection (h), the business court has 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. A claim within the business court’s supplemental jurisdiction may proceed in the business court only on the agreement of all parties to the claim and a judge of the division of the court before which the action is pending. If the parties involved in a claim within the business court’s supplemental jurisdiction do not agree on the claim proceeding in the business court, the claim may proceed in a court of original jurisdiction concurrently with any related claims proceeding in the business court.

(g)

Unless the claim falls within the business court’s supplemental jurisdiction, the business court does not have jurisdiction of:

(1)

a civil action:

(A)

brought by or against a governmental entity; or

(B)

to foreclose on a lien on real or personal property;

(2)

a claim arising out of:

(A)

Subchapter E (Criteria for Enforceability of Covenants Not to Compete), Chapter 15 (Monopolies, Trusts and Conspiracies in Restraint of Trade), and Chapter 17 (Deceptive Trade Practices), Business & Commerce Code;

(B)

the Estates Code;

(C)

the Family Code;

(D)

the Insurance Code; or

(E)

Chapter 53 (Mechanic’s, Contractor’s, or Materialman’s Lien) and Title 9, Property Code;

(3)

a claim arising out of the production or sale of a farm product, as that term is defined by Section 9.102 (Definitions and Index of Definitions), Business & Commerce Code;

(4)

a claim related to a consumer transaction, as that term is defined by Section 601.001 (Definitions), Business & Commerce Code, to which a consumer in this state is a party, arising out of a violation of federal or state law; or

(5)

a claim related to the duties and obligations under an insurance policy.

(h)

The business court does not have jurisdiction of the following claims regardless of whether the claim is otherwise within the court’s supplemental jurisdiction under Subsection (f):

(1)

a claim arising under Chapter 74 (Medical Liability), Civil Practice and Remedies Code;

(2)

a claim in which a party seeks recovery of monetary damages for bodily injury or death; or

(3)

a claim of legal malpractice.
Added by Acts 2023, 88th Leg., R.S., Ch. 380 (H.B. 19), Sec. 1, eff. September 1, 2023.

Source: Section 25A.004 — Jurisdiction and Powers, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­25A.­htm#25A.­004 (accessed May 11, 2024).

Accessed:
May 11, 2024

§ 25A.004’s source at texas​.gov