On February 9, 2026, the first jury was seated for the Texas Business Court in Powers et al. v. Berry et al. The Texas Business Courts were created on September 1, 2024. Powers v. Berry was originally filed state district court in October 2024 and was quickly removed to the Texas Business Court as it involved a business dispute with damages alleged to be between $30 million and $200 million. The dispute at issue involved ownership and control of a crude export terminal. Trial lasted eight days, after which the 12 jurors deliberated and returned a 10-2 verdict for Powers.

Powers v. Berry serves as a reminder that many construction cases may fall within the jurisdiction of the Texas Business Court. As it relates to construction disputes, active cases can be removed to the Texas Business Court if the claims exceed $5 million and arise out of an “action arising out of a qualified transaction”. The term “qualified transaction is specifically defined as:

A transaction, or series of related transactions other than a transaction involving a loan or an advance of money or credit by a bank, credit union, or savings and loan institution, under which a party:

(A)  pays or receives, or is obligated to pay or is entitled to receive, consideration with an aggregate value of at least $5 million; or
(B)      lends, advances, borrows, receives, is obligated to lend or advance, or is entitled to borrow or receive money or credit with an aggregate value of at least $5 million.

For instance, a construction defect dispute where the contract sum for underlying construction was $35 million and the alleged property damage caused by the defects is $7 million, would meet the criteria to be removed to the Texas Business Court.

In order to remove an active case to the Texas Business Court, a motion for removal must be filed within 30 days of being served in the lawsuit or within 30 days after discovering the party should have reasonably discovered facts establishing the Business Court’s jurisdiction over the dispute. However, it is important to know that a judge can also request removal of a case to the Texas Business Court.

Additionally, in drafting contracts and considering the appropriate venue to include in venue selection provisions, the below should be considered when selecting the Texas Business Courts as the agreed venue.

–   Texas Business Court judges are appointed to two year terms, so the appointed judge could change during the life of a case.;
–   Judges has some subject matter expertise as they must meet certain requirements, including at least 10 years’ experience in practicing complex civil business litigation, practicing business transaction law, and/or serving as a civil judge within the state.;
–   The filing fees for the Texas Business Court are more than district court but less than arbitration.;
–   The Texas Business Court has a designated court of appeals; and
–   Judges in the Texas Business Court must provide a written opinion for a dispositive ruling if requested by a party.

The attorneys in our Austin and Dallas office are available to answer any questions you may have. Please contact us at info@gstexlaw.com.

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