Texas Business Court is a bold experiment in corporate governance

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The new Texas Business Court marks a transformative moment for corporate governance in the United States. It is more than a judicial experiment; it is a...

Texas Governor Greg Abbott poses for a photograph with newly appointed judges of the Texas business courts at Texas A&M University School of Law in Fort Worth, Texas on Thursday, September 19, 2024. Governor Abbott swore in a total of ten justices, two in each Business Court divisions in San Antonio, Dallas, Fort Worth, Austin and Houston.With this bold initiative, Texas has positioned itself as a direct challenger to Delaware’s long-standing dominance in corporate litigation.

Second, judicial appointments in Texas tend to have shorter terms, raising questions about continuity and expertise. Businesses trust Delaware’s Court of Chancery in part because of the deep institutional knowledge of its judges, something Texas must work to replicate.

 

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