Texas House bill aims to create chancery court for business litigation

Out-of-state companies may soon have another reason to re-locate to Texas – a court exclusively shaped to handle business-related litigation.

On Feb. 18 state Rep. Jason Villalba, R-Dallas, introduced House Bill 1603, which relates to the creation of a chancery court and chancery court of appeals to hear business cases.

Villalba, a Haynes Boone attorney who focuses on corporate law, tweeted Tuesday that his bill would produce “a specialized business court that would increase efficiency in the current court system.”

According to the bill’s text, specialized judges would preside over the cases.

The judges who would preside over the court must have practiced complex civil business litigation for at least 10 years.

An action filed in a district or county court can be transferred to the chancery court. However, if the chancery court finds it does not have jurisdiction over the case, the litigation will be remanded.

Furthermore, the “chancery court shall use the most advanced technology feasible when necessary and appropriate to facilitate expeditious proceedings in matters brought before the court,” the bill states.

The governor would appoint the judges.

If the Supreme Court of Texas holds the appointments as unconstitutional, the high court would staff the chancery court with sitting or retired judges.