What happened: On Thursday, Gov. Greg Abbott swore in the newly appointed Texas Business Court judges at a ceremony in Fort Worth. The court came online September 1, and the first cases have already been filed in the Houston and Austin divisions.

Photo courtesy of the Governor’s Office

Tell me more: The Texas Business Court specializes in complex, business-to-business cases. The court is headed up by judges with specific backgrounds in this type of litigation, helping streamline the resolution of business-related legal challenges, which can often be lengthy and costly. 

• By creating an efficient process to handle these disputes and building out this area of Texas’ corporate law, the Lone Star State is creating a strong infrastructure for employers doing business in Texas.

Who are the judges? 

• Andrea Bouressa and William “Bill” Whitehill to the First Business Court Division in Dallas

• Melissa Andrews and Patrick K. Sweeten to the Third Business Court Division in Austin

• Marialyn Barnard and Stacy Sharp to the Fourth Business Court Division in San Antonio
• Jerry Bullard and Brian Stagner to the Eighth Business Court Division in Fort Worth
• Sofia Adrogué and Grant Dorfman to the Eleventh Business Court Division in Houston

In his own words: “These experienced individuals will serve to ensure that Texas businesses will have a sophisticated and efficient process to resolve their disputes. I look forward to seeing the positive impact these courts will provide for a bigger, better Texas for generations to come.” —Gov. Greg Abbott

Photo courtesy of the Governor’s Office

TLR Thoughts: The Texas Business Court builds on our state’s longstanding investment in economic growth and competitiveness, and these strong appointments are critical to helping establish the court. By creating a specialized forum for resolving commercial disputes, the business court will reduce the burden of complex litigation on Texas job creators and ensure they have access to a fair and efficient legal process.

Read the full press release here.

What happened: California filed a first of its kind lawsuit against ExxonMobil, accusing the company of misleading the public about the recyclability of plastics and its role in contributing to global plastic pollution and creating a public nuisance. 

Tell me more: California is one of the states suing oil and gas companies for “creating the public nuisance of climate change.” In 2022, the state launched an investigation into the fossil fuel industry’s role in plastic pollution, during which ExxonMobil was subpoenaed.

Worth noting: The state of New York and city of Baltimore have both sued manufacturers like PepsiCo and Frito Lay for public nuisance claims related to product packaging litter. California’s lawsuit is the first attempt to tie oil and gas companies to plastics litter. 

TLR Thoughts: Littering is illegal, but simply producing products that we all rely on every day—like oil and gas and plastics—is not. As Sen. Mayes Middleton wrote in our recent TLR Advocate, “It’s a disturbing trend to see governmental entities suing private companies and individuals for lawful activities as a bypass of the Legislature.” 

Read the full article here.

What happened: The U.S. saw a record 27 nuclear verdicts exceeding $100 million in 2023, driven by rising litigation costs and social inflation, which hit a 20-year high at 7%.

How it works: Social inflation refers to the rising cost of liability claims beyond what can be accounted for by economic factors, leading to increased insurance premiums and reduced coverage.

• As social inflation drives up the cost of claims, companies are seeing their insurance costs skyrocket, especially in sectors like trucking, where excess coverage rates have increased by over 75%.
• This trend is leading insurers to leave the market or avoid insuring certain industries altogether, leaving companies exposed to higher risks if they can’t secure adequate coverage to operate.

TLR Thoughts: The rise in nuclear verdicts—fueled by inflated medical bills and social inflation—poses a serious threat to every company trying to operate in the Lone Star State. Without legislative action, more and more employers will face tough choices about their ability to continue to do business in Texas.

Read the full article here.

What happened: Texas is making a bold move to compete with Delaware as a top destination for business incorporation by establishing its own specialty business courts—part of Gov. Greg Abbott’s strategy to continue to attract major corporations following recent high-profile relocations like Tesla’s. But in order to truly compete, it’s worth looking at the other advantages Delaware has at its disposal in attracting businesses.

Remind me: Delaware has long dominated business litigation due to its renowned Court of Chancery, which handles complex corporate disputes quickly and efficiently. But that’s not all…

• Delaware’s robust corporate governance statutes have been tested for decades, meaning corporations and their executives have a clear track record to follow when it comes to the rules of the road for operating.

By the numbers: More than two million businesses had incorporated in Delaware as of last year, including about 70% of Fortune 500 companies and 80% of US initial public offerings.

TLR Thoughts: Texas’ new business courts are a transformative step in strengthening our state’s pro-business environment. Now that they are operational, the Legislature has the opportunity next session to build on its commitment to economic development by strengthening our corporate governance laws so that job creators have confidence in what it means to do business in the Lone Star State.

Read the full article here. 

What happened: The first cases have been filed in Texas’ specialized business court, which officially launched on September 1.

Remind me: The Legislature created this court in 2023 to handle complex business-to-business cases with the goal of providing quicker decisions and specialized expertise. The court’s first five divisions are now operational in Dallas, Fort Worth, Austin, San Antonio and Houston.

Give me the deets: Fort Worth-based construction company Primoris T&D Services LLC filed its lawsuit in the Austin business court division, and Dallas-based real estate company MedProperties Tomball LLC filed in the Houston division.

• These cases will be handled by expert judges appointed by Gov. Abbott who have specific background in business law.

In his own words: “We thought this was just a perfect case to be heard before the business court, not just for us, but we feel like both sides will benefit from it. How [the court] is structured and how it’s set up to deal with this — quicker decisions, getting reasoned awards, written decisions rather than just pro forma one-line decisions like you normally get in state court …  we just felt like the structure was better.” –R. Heath Cheek of Bell Nunnally & Martin LLP, counsel for Primoris

TLR Thoughts: Texas businesses deserve a Texas-based court to resolve highly complex disputes. The Legislature took an important step by creating the business court last session and has an important opportunity to further build out that court’s jurisdiction and our state’s corporate governance laws in 2025.

Read the full article here. 

What happened: Rampant attorney advertising is fueling America’s $500 billion litigation industry, and families and job creators are paying the price.

By the numbers: A 2020 study found that Texas families pay an extra $3,904 in costs associated with litigation—more than the national average of $3,621—and up from $3,535 in 2018.

• Nationally, from 2016 to 2020, the direct economic costs of the tort system grew at an annual rate of six percent, more than twice as fast as GDP.

How it works: Personal injury trial lawyers blanket the airwaves with ads for legal services, touting multimillion-dollar judgments they’ve obtained for past clients.

• These ads do two things: they set the expectation that every incident is worthy of a lawsuit, no matter who was at fault. And they set the expectation that every lawsuit is worthy of a big payday.

• For the potential client, there is no downside. Why not roll the dice to see if you can get some money? For the potential juror, it lays the foundation for the types of nuclear verdicts we’re seeing more and more in courtrooms.

• The fees won in these lawsuits are then used to buy more personal injury ads, fueling the litigation lifecycle.

So who loses? Texas job creators, whose insurance premiums are rising because it’s not a matter of if they will be sued, but when. And Texas families, as the increased cost of doing business is baked into the price of goods and services they need.

TLR Thoughts: The Lone Star State has worked hard to build the Texas Miracle, but ignoring our nuclear verdict problem puts that all at risk. As Texans’ pocketbooks are increasingly hit by inflation, the Legislature should do everything it can to keep abusive and unnecessary lawsuits from jacking up the cost of doing business for job creators, and of the products and services we all use every day.

Read the full article here.

• What happened: The defendants in a Pennsylvania county’s climate nuisance lawsuit are pushing back, claiming the litigation is illegitimate because it was not approved in a public meeting, as required by state law.
•  Remind me: Bucks County’s lawsuit is part of a larger trend of cookie cutter climate nuisance suits seeking to hold energy producers liable for damages related to climate change.
  •  Over 35 municipalities and several states across the country have filed similar lawsuits, which are headed up by a handful of boutique law firms working on a contingency fee.
• What else? The oil companies’ legal argument echoes a broader challenge to these lawsuits: that state law cannot govern global climate change issues, which should be addressed through federal law or regulations.
• TLR Thoughts: While the procedural misstep of bypassing approval protocols may undermine this lawsuit’s legitimacy, it also highlights casts doubt on attempts by contingency fee attorneys to use cookie-cutter nuisance pleadings to extract damages from the companies behind legal products that we rely on every day.

Read the full article here

• What happened: A recent survey by the National Federation of Independent Business (NFIB) found that Texas small businesses are struggling with to keep up with high operational costs, despite the state’s overall strong economy.
  •  Included in Texas small business owners’ top ten concerns were inflation and the availability and high cost of liability insurance, underscoring the challenges small businesses face in the current economic climate.
• Remind me: Texas has long been known for its business-friendly environment thanks to smart decisions by our state’s leadership. But it’s clear we can do more to lighten the burden on small businesses, which pay a disproportionate share of taxes relative to their economic output.
• In their own words: “Small businesses employ nearly half of the private sector workforce, and this publication makes clear where lawmakers should focus their attention to strengthen Main Street and every community in which they operate.” –NFIB Research Center Executive Director Holly Wade
• TLR Thoughts: Texas’ pro-growth policies have helped build its reputation as a top state for business, but things like the increasing frequency and cost of nuclear verdicts are making it harder to find and afford the insurance small businesses need to operate. As we begin to gear up for the 2025 legislative session, lawmakers should prioritize policies that make it easier for small businesses to create jobs and invest in our communities.

Read the full article here

• What happened: Additional comments from Chevron’s CEO shed new light on the policies that drove the energy producer out of California and to the Lone Star State, including the California Attorney General’s climate nuisance lawsuit. Read more
• Remind me: California is one of dozens of state and local governments to sue energy companies for creating the public nuisance of climate change through the production of a legal product that its citizens rely on every day.
• In his own words: “We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and, ultimately, we think that’s not good for the economy in California and for consumers… We believe that climate is a matter that’s a global issue and is best addressed through national and global policy engagement, and not through the courts.” –Chevron CEO Mike Wirth
• What else? California’s tax and regulatory burden also received a dishonorable mention.
• TLR Thoughts: Texas’ leadership has made strategic, long-term decisions to build an economic environment that encourages job creation and investment, including the recent creation of our specialized business court. But there’s more to be done.
  • The recent proliferation of nuclear verdicts in Texas is making it more expensive to operate and insure a business here, no matter the size.
  • Nothing is stopping local governments from filing the same types of burdensome public nuisance lawsuits that we’re seeing across the country.
  • The new business court gives us an opportunity to strengthen the corporate governance laws that fall within its purview, helping build out the legal framework for businesses that call Texas home.

• What happened: A new poll by the U.S. Chamber of Commerce found that 71 percent of likely voters support reforms to rein in personal injury trial lawyer advertising. Read more
• Digging into the numbers: Support was overwhelming across the ideological spectrum, with 73 percent of Republicans, 71 percent of Democrats and 69 percent of independents agreeing with the need to curb rampant attorney advertising.
• Everywhere, all the time: Personal injury firms are funneling big dollars into TV, radio, digital and outdoor ads to help recruit new clients and influence juries.
  • Potential clients never need to look far to find an attorney, or are scared out of using certain products or medications.
  • The public (and any potential jury pool) becomes immune to massive payouts, increasingly believing they’re justified even when they’re not supported by the facts of a case.
• What about Texas: The Legislature passed a 2019 law aimed at creating clearer disclosures in attorney advertising related to prescription drugs and medical devices. And the Texas Supreme Court recently amended its rules requiring clearer disclosure about what the client actually received in ads touting high dollar judgments.
  • This was in response to a San Antonio man revealing he hadn’t received a dime out of an advertised $1.25 billion judgment.
• TLR Thoughts: Attorney advertising plays an outsized role in the lawsuit generation machine, and in building Texas’ dubious reputation as a national leader in nuclear verdicts. The Texas Legislature should look at all the factors playing into this ecosystem, and whether they help or hurt our legal system.

• Here’s what happened: On the heels of major corporations such as X, SpaceX and Tesla moving to Texas, Chevron Corp. has announced it is relocating its headquarters from California to Houston. Find out more
• Go further: Chevron cited California’s stringent environmental rules and regulatory policies as significant obstacles to business and investment and could increase gas prices for everyday consumers.
• In his own words: “The policies in California have become pretty restrictive on a lot of business fronts, not just the environment.”–Chevron CEO Mike Wirth
• So, this is awkward… Last year, California Attorney General Rob Bonta filed a climate nuisance lawsuit against Chevron and four other oil companies seeking massive payouts for their alleged contributions to climate change-related environmental damage.
• What’s great about Texas: In addition to our smart economic policies like low taxes and predictable regulations, this September, Texas’ new specialized business courts–a critical investment in economic development that will streamline the resolution of business disputes–will be operational in major metropolitan cities statewide. Get up to speed
• TLR Thoughts: Thanks to smart policy decisions by our state’s leaders, Texas has the eighth-largest economy in the world and attracts businesses of all sizes. Those decisions are paying off
  in the form of jobs for Texans and investment in our communities, and now is not the time to take our foot off the gas.

Read the full article here.