⚠️ EDUCATIONAL INFORMATION ONLY - NOT LEGAL ADVICE
This article provides general educational information about the Texas court system and is not legal advice. Court structures and procedures are subject to change. This content is intended for general educational purposes and is not tailored to any individual business or legal dispute. Always consult with a qualified Texas attorney for guidance specific to your situation.
Get Updates on New Texas Business Guides
When business disputes cannot be resolved through negotiation or alternative methods, litigation in Texas courts may become necessary. Understanding how the Texas court system is structured and which courts handle different types of disputes provides essential orientation for businesses facing potential litigation.
This guide provides an educational overview of the Texas court system structure, the types of courts that hear business disputes, and links to detailed resources on specific aspects of business litigation.
The Texas Court System: Hierarchical Structure
Texas courts are organized in tiers, with trial courts where cases begin and appellate courts that review trial court decisions.
Texas Court Hierarchy for Business Disputes
Trial Courts (Where Cases Begin)
Justice Courts
- Handle civil cases up to $20,000
- Often called the "small claims court"
- Simplified procedures, less formal
- Located in precincts within each county
County Courts at Law
- Handle civil cases between $500 and $200,000
- Also hear appeals from Justice Courts
- Not all counties have County Courts at Law
- More formal procedures than Justice Courts
District Courts
- Handle cases over $200,000
- General jurisdiction over complex business disputes
- Exclusive jurisdiction over certain matters (real property, injunctions)
- Formal procedures under Texas Rules of Civil Procedure
Appellate Courts (Review Trial Decisions)
Courts of Appeals
- Fourteen regional appellate districts across Texas
- Review trial court decisions for legal error
- Can affirm, reverse, or remand cases
- Generally defer to trial courts on factual findings
Texas Supreme Court
- Highest court for civil matters in Texas
- Discretionary review of selected cases
- Focuses on important legal questions
- Resolves conflicts between Courts of Appeals
When Litigation May Become Necessary
Businesses may face litigation when:
- Contract disputes cannot be resolved through negotiation
- Collection efforts for unpaid invoices are unsuccessful
- Business relationships deteriorate beyond repair
- Legal rights or property interests require court protection
- Statutory or regulatory compliance requires judicial determination
- Other dispute resolution methods have been exhausted or are inappropriate
Key Concepts in Texas Business Litigation
Several fundamental concepts determine how and where business disputes are litigated in Texas:
Court Selection
Different courts handle different types and sizes of disputes. The amount in controversy, type of case, and relief sought determine which court has authority to hear the case.
Jurisdiction
Courts must have both subject matter jurisdiction (authority over the type of case) and personal jurisdiction (authority over the defendant) to hear a dispute.
Venue
Venue rules determine which county in Texas is the proper location for filing a lawsuit, based on factors like where parties reside or where events occurred.
Alternative Dispute Resolution
Texas courts encourage and sometimes require alternative dispute resolution methods like mediation before cases proceed to trial.
Detailed Litigation Guides
For comprehensive information on specific aspects of Texas business litigation, explore these specialized resources:
Small Claims vs. District Court
Compare Justice Court and District Court procedures, costs, and strategic considerations.
Jurisdiction & Venue
Understand court authority requirements and proper county for filing business lawsuits.
Alternative Dispute Resolution
Explore mediation, arbitration, and other ADR methods Texas courts encourage.
Litigation Procedure Basics
Learn about statutes of limitation, pleading requirements, and discovery procedures.
Importance of Legal Counsel
Business litigation involves complex legal, procedural, and strategic considerations. Many businesses benefit from consulting with qualified Texas attorneys for:
- Evaluating whether litigation is the appropriate course of action
- Determining which court has jurisdiction over the dispute
- Understanding procedural requirements and deadlines
- Developing litigation strategy and assessing likely outcomes
- Protecting legal rights and business interests throughout the process
- Exploring settlement opportunities and alternative dispute resolution
⚠️ IMPORTANT DISCLAIMER
This article provides general educational information about the Texas court system for business disputes and is not legal advice. Court structures, jurisdictional amounts, and procedural rules are subject to change. The information provided may not reflect current requirements or be applicable to your specific business or legal situation.
Business litigation involves complex legal considerations with potentially significant consequences. Individual disputes vary in their facts, applicable law, and strategic considerations. Many businesses benefit from consulting with qualified Texas attorneys for guidance on litigation matters, court selection, procedural compliance, and protection of legal rights. Always consult with experienced litigation attorneys for guidance specific to your business dispute.
Get Updates on New Texas Business Guides
📚 Related Educational Resources
Texas Business Contracts Fundamentals
Learn about contract formation and provisions that can affect litigation, including dispute resolution clauses.
Business Entity Liability Protection
Understand how entity structure affects legal liability in business disputes.