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ARTICLE · 15 NOVEMBER 2024

New Ruling Limits Jurisdiction Of Texas Business Courts

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On October 30, the Dallas Business Court issued a long-awaited ruling of first impression, holding that Texas' newly formed business courts have no jurisdiction over cases...

United StatesLitigation, Mediation & Arbitration

On October 30, the Dallas Business Court issued a long-awaited ruling of first impression, holding that Texas' newly formed business courts have no jurisdiction over cases already in existence prior to September 1, 2024.

Background

The ruling was issued as part of litigation between two energy companies. The litigation originated in the 193rd District of Dallas County in 2022 but was removed to the Dallas Business Court, the 1st Division of The Business Court of Texas, on September 30, 2024, shortly after the business courts began accepting cases under the statute.

The Ruling

The Dallas Business Court ruled on strict statutory interpretation grounds, finding that the plain language limited the business courts' jurisdiction to cases initiated after September 1. The statutory provisions at issue were Section 8, stating that the changes in law "apply to civil actions commenced on or after September 1, 2024," and Section 9, stating that "[t]his Act takes effect

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