🔴Relating to the business court.
HB 40
🔴 HB 40: Creates a corporate-friendly Business Court system in Texas
What it says it does:
HB 40 expands the state’s Business Court to handle complex commercial disputes and promises faster, more specialized rulings for business cases. Supporters frame it as a way to reduce court backlogs and bring “expert judges” into high-value corporate litigation.
What it actually changes:
The bill removes these cases from local, elected district courts and places them in a statewide Business Court where judges are appointed, not chosen by voters. It also funnels all appeals into a single new Fifteenth Court of Appeals, bypassing regional appellate courts. This centralizes legal power at the state level and limits local judicial oversight.
Who is pushing for it:
Texans for Lawsuit Reform, Texas Business Law Foundation, Texas Association of Business, Energy Transfer, NFIB, Texas Civil Justice League, and the Texas Mortgage Bankers Association all supported the bill. These groups represent corporate, banking, and oil and gas interests that benefit from predictable rulings and reduced local scrutiny.
Who benefits:
Large corporations, developers, banks, and oil and gas companies gain access to a specialized court system designed to resolve business disputes quickly and quietly. The structure makes litigation outcomes more predictable and shields powerful entities from diverse regional courts and elected judges.
Who gets left out or exposed:
Small businesses, local governments, and individual plaintiffs lose access to familiar district courts and elected judges. Counties that rely on regional courts for oversight lose their legal leverage. Ordinary Texans now face a higher barrier to justice when taking on major corporations.
Why this matters long term:
HB 40 establishes a two-tier legal system that favors wealth and influence. It sets a precedent for future industry-specific courts, weakens public accountability, and erodes local judicial authority. By concentrating control within appointed judges and a single appellate path, it chips away at the public’s ability to monitor and influence how justice is applied.
What to watch next:
Future legislative sessions may expand this model to other sectors such as environmental law, healthcare, or education. Expect additional pushes for appointed judges and centralized appellate control. Watch for attempts to limit public access to court data or delay fiscal reviews by the Legislative Budget Board.
Bottom line:
HB 40 shifts power away from local, elected courts and gives large corporate interests a private lane through the justice system. It is not court reform. It is a structural transfer of authority from the people to the politically connected.
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