The Litigation Section was granted permission by the State Bar of Texas to officially oppose HB1875 which would create a statewide specialized Business Court and a Business Court of Appeals. Read our April 29, 2021 Letter and Resolution in Opposition to HB1875
, which was sent to Dade Phelan, Speaker of the House, Dan Patrick, Lieutenant Governor, and each of the members of the Texas House of Representatives. This Resolution succinctly outlines the many reasons we find this bill objectionable.
Brief Description of HB175: This bill is the latest in a series of bills filed, but never passed, in past legislative sessions dating back to 2015 that would create a statewide specialized civil trial court and an appellate court to hear derivative actions on behalf of organizations (defined) and actions against, between or among organizations, governing authorities (undefined) and certain classes of individuals (defined) relating to a contract transaction for business or similar purposes. The Business Court would be composed of 7 trial judges appointed by the governor for 2-year terms. The Court of Business Appeals would hear appeals from the Business Court and be composed of 7 justices also appointed by the governor for 2-year terms. Appeals from the Business Court of Appeals would go to the Texas Supreme Court. The Office of Court Administration estimates that, if this court were created, the fiscal impact of HB1875
for the first two years of operation for this secondary court system would exceed $12 million.
On April 6, Judiciary & Civil Jurisprudence
conducted a public hearing on the bill. On April 21, by a 5-4 vote, the bill was voted out of committee without amendment.
If you have opinions or concerns about this or any other bill, I urge you to contact your legislators directly. Your opinions and special knowledge of these matters could have an important impact. You can find the legislators and their contact information here: Senators
and House Members