San Antonio – The Texas business court, created in 2023 to move high‑value commercial disputes out of the hands of locally elected judges, is now poised to come under Democratic control. Incoming Governor Gina Hinojosa, who opposed the court’s creation while serving in the Texas House, will soon have the authority to appoint its judges.
Background on the business court system
The Legislature approved a specialized business court division in 2023, aiming to provide a more predictable forum for complex, high‑dollar cases involving companies such as Valero, NuStar Energy and regional automotive groups. A companion statewide appellate court was also established, granting immediate appellate jurisdiction over cases involving state officials.
Judges for the San Antonio division, Marialyn Barnard and Stacy Sharp, were appointed by Governor Greg Abbott and reappointed to two‑year terms in September. Their docket has expanded rapidly, with Barnard noting a surge in cases as companies reincorporate in Texas and overflow from Houston and Dallas courts.
Election results reshape the judiciary
Last week’s statewide elections delivered a decisive Democratic victory. All three inaugural justices to the new 15th Court of Appeals, also appointed by Abbott, were defeated by Democratic challengers. The shift places both the business court and its appellate counterpart under Democratic oversight.
“They would have never done it if they had had a crystal ball and seen this election,” said Dallas County Commissioner Andy Sommerman, a Democratic attorney who has questioned the court’s authority.
Governor Hinojosa’s next steps
Governor Hinojosa, who campaigned on holding big business accountable, has not yet detailed her plan for the business court. Texas law requires a two‑thirds Senate vote to confirm the current judges for another two‑year term. Republicans lack the votes to secure confirmation on their own, and the Senate may wait until the 90th Legislative Session concludes in May.
If the Senate does not confirm the judges, they could remain in place until the session ends, after which Governor Hinojosa could nominate new judges or allow the courts to be sunsetted, returning cases to traditional district courts.
Stakeholder reactions
Texans for Lawsuit Reform, the advocacy group that championed the business court, expressed concern that a Democratic‑led court could become more ideological and resemble the Delaware Chancery Court that Texas sought to avoid. “My concern would be that the court lurches to the left and becomes very ideological… and is the reason companies are coming to Texas,” said Ryan Patrick, the group’s CEO.
Elon Musk, a major donor to Texans for Lawsuit Reform, has also been cited as a key backer of the court. Sommerman noted that Musk contributed “hundreds of millions of dollars” to the effort, describing the court as an attempt to “put the thumb on the scale of justice.”
Implications for Texas businesses
Business leaders are watching the transition closely. The court’s original purpose was to provide a neutral, expert forum for complex commercial disputes, a feature that helped attract companies to Texas. Any perceived shift toward partisan decision‑making could influence corporate decisions about where to locate operations.
For now, the future of the business court remains uncertain. Governor Hinojosa’s appointments, the Senate’s confirmation vote, and the broader political environment will determine whether the court continues to serve its intended role or undergoes significant restructuring.
Original reporting: San Antonio Report — read the source article.
