Strictly Business

One of the biggest questions lingering as we await the first opinions of both the Business Court of Texas and the Fifteenth Court of Appeals is where, exactly, these courts will look to find precedent. The only obviously binding answer is the Supreme Court of Texas.

David Coale (of www.600camp.com fame) authored an excellent article for the Spring 2024 edition of The Advocate discussing what the Fifteenth Court of Appeals might draw on to inform its decisions. You can (and should) read it here.

The Business Court of Texas adds a whole new level of complexity, given that it shares concurrent jurisdiction with the District Courts. The Government Code grants the Fifteenth Court of Appeals exclusive jurisdiction over appeals “from an order or judgment of the business court.” Note that the statutory text does not appear to give the Fifteenth Court of Appeals jurisdiction over cases that could have been brought in the Business Court.

Since the Business Court’s jurisdiction is concurrent, actions that could fall within its jurisdiction may still be heard by district courts–where, ostensibly, they would be heard on appeal by one of the fourteen regional courts of appeal. Where those courts’ precedents differ from the Fifteenth, it’s possible that the decision to remove or not remove a certain action to Business Court could completely reshape a case.

Can a district court that is deciding a case that could have been brought in Business Court ignore precedents of its court of appeals when those precedents conflict with the Fifteenth? We’re likely to find out in the next few years.