Feb 9, 2026

Jurisdiction and Venue in Texas Business Lawsuits

⚠️ EDUCATIONAL INFORMATION ONLY - NOT LEGAL ADVICE

This article provides general educational information about jurisdiction and venue in Texas lawsuits and is not legal advice. Jurisdictional requirements and venue rules are subject to change and involve complex legal analysis. This content is intended for general educational purposes and is not tailored to any individual business or legal dispute. Consult a qualified Texas attorney for guidance specific to your situation.

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Jurisdiction and venue are fundamental concepts that determine whether a court has authority to hear a case and where in Texas a lawsuit should be filed. Understanding these requirements is essential for businesses involved in litigation, as improper jurisdiction or venue can result in dismissal or transfer of cases.

Understanding Jurisdiction

Jurisdiction refers to a court's legal authority to hear and decide a case. For a Texas court to properly hear a business dispute, it must have both subject matter jurisdiction and personal jurisdiction.

Subject Matter Jurisdiction

Subject matter jurisdiction is the court's authority to hear the particular type of case based on the nature of the dispute and the amount in controversy.

Jurisdictional limits by court:

  • Justice Courts: Civil cases up to $20,000
  • County Courts at Law: Civil cases $500 to $200,000 (where they exist)
  • District Courts: Civil cases over $200,000

Exclusive subject matter jurisdiction:

District Courts have exclusive jurisdiction over certain matters regardless of amount:

  • Title to land disputes
  • Divorce and family law matters
  • Injunctive relief
  • Declaratory judgments
  • Probate matters (in counties without statutory probate courts)
  • Certain business entity disputes

Determining amount in controversy:

  • Based on amount plaintiff seeks in good faith
  • Measured at time of filing
  • Includes damages, penalties, and interest where applicable
  • Attorney's fees may or may not be included depending on circumstances
Subject Matter Jurisdiction Cannot Be Waived: Even if parties agree or fail to object, a court without subject matter jurisdiction cannot hear the case. Courts can raise subject matter jurisdiction issues on their own motion at any time, including on appeal. Cases filed in courts lacking subject matter jurisdiction must be dismissed or transferred.

Personal Jurisdiction

Personal jurisdiction is the court's authority over the defendant personally. Texas courts must have a legal basis to exercise power over defendants.

Bases for personal jurisdiction in Texas:

1. Defendant is Texas resident

  • Texas courts generally have jurisdiction over Texas residents
  • Individuals: domiciled in Texas
  • Corporations: incorporated in Texas or have principal place of business in Texas

2. Defendant consents to jurisdiction

  • Voluntary submission to court's authority
  • Can occur through contract provisions
  • Filing answer without challenging jurisdiction constitutes consent

3. Texas Long-Arm Statute

Texas can assert jurisdiction over out-of-state defendants who:

  • Contract with Texas residents for services or goods to be performed or delivered in Texas
  • Commit tortious acts in Texas
  • Commit tortious acts outside Texas causing injury in Texas
  • Own, use, or possess real property in Texas (for claims related to that property)
  • Conduct business in Texas

Constitutional limits - Minimum Contacts:

  • Due process requires defendant have "minimum contacts" with Texas
  • Exercise of jurisdiction must be fair and reasonable
  • Defendant must have purposefully availed itself of Texas
  • Litigation must relate to defendant's Texas contacts

Specific vs. General Jurisdiction:

  • Specific jurisdiction: Based on defendant's contacts related to the lawsuit
  • General jurisdiction: Defendant's contacts so substantial that court has jurisdiction over any claim

Challenging Personal Jurisdiction

Special Appearance:

  • Defendant must file special appearance to contest personal jurisdiction
  • Must be filed before any other pleading or response
  • Special appearance preserved while contesting jurisdiction
  • Filing answer or other pleading first waives objection

Burden of proof:

  • Initially on plaintiff to establish prima facie case for jurisdiction
  • If plaintiff meets burden, defendant must prove lack of jurisdiction
  • Court determines personal jurisdiction based on pleadings and evidence
Timing Is Critical: Personal jurisdiction objections must be raised through special appearance before filing answer. Failing to timely challenge personal jurisdiction waives the objection, and the court acquires jurisdiction over the defendant.

Understanding Venue

Venue determines which county in Texas is the proper location for filing a lawsuit. Unlike jurisdiction, venue requirements can be waived if not properly and timely contested.

General Venue Rules

Texas venue statutes establish where lawsuits may be filed:

Venue for Individual Defendants

Suit against an individual may be brought in:

  • County of defendant's residence at time suit is filed
  • County where all or substantial part of events giving rise to claim occurred

If defendant is nonresident of Texas, proper venue is any county where:

  • Plaintiff resides
  • Cause of action arose

Venue for Corporate Defendants

Suit against a corporation or other business entity may be brought in:

  • County of defendant's principal office in Texas
  • County where all or substantial part of events giving rise to claim occurred
  • County where defendant's registered agent is located

Specific Venue Provisions

Texas law provides specific venue rules for certain types of cases:

Real property disputes:

  • Proper venue generally in county where property is located
  • Includes disputes over title, possession, or use of real property
  • Applies to foreclosure actions and boundary disputes

Contract disputes with venue provisions:

  • Written contracts may specify county for dispute resolution
  • Courts generally enforce contractual venue provisions
  • Parties agree in advance where disputes will be litigated
  • Provides certainty and can be strategic advantage

Tort claims:

  • County where tort occurred
  • County where defendant resides
  • If plaintiff injured by asbestos exposure, special venue rules apply

Debt and contract claims:

  • County where defendant resides
  • County where contract was to be performed
  • County where all or substantial part of events occurred

Mandatory vs. Permissive Venue

Mandatory venue:

  • Certain statutes require venue in specific county
  • Cannot be waived by parties
  • Court must transfer if filed in wrong county

Permissive venue:

  • Most venue provisions are permissive
  • Multiple counties may be proper venue
  • Plaintiff chooses among proper venues
  • Can be waived if not timely contested

Challenging Venue

Motion to Transfer Venue

Filing requirements:

  • Must be filed with or before answer to lawsuit
  • Filed later than answer waives venue objection
  • Must specifically state grounds for transfer
  • Must request transfer to specific county with proper venue

Burden of proof:

  • Burden depends on whether plaintiff's petition establishes venue
  • If plaintiff's petition establishes proper venue, defendant must prove venue facts wrong
  • If plaintiff's petition doesn't establish venue, plaintiff has burden

Venue hearing:

  • Court holds hearing on motion to transfer
  • Parties present evidence regarding venue facts
  • Evidence can include affidavits, documents, testimony
  • Court determines whether venue proper in filed county

Court's decision:

  • If venue proper: motion denied, case proceeds in filed county
  • If venue improper: court orders transfer to county of proper venue
  • Decision on venue can be appealed through mandamus

Waiver of Venue

Venue objections can be waived:

  • Failure to timely contest: Not filing motion to transfer with or before answer
  • Agreement: Parties can agree to venue in particular county
  • Participation without objection: Proceeding with case without challenging venue
Strict Timing Requirements: Motion to transfer venue must be filed with or before answer to the lawsuit. Filing even one day late typically results in waiver of venue objection. Strategic consideration of venue should occur immediately upon being served with lawsuit.

Strategic Considerations

Why Venue Matters

Venue can affect various practical and strategic aspects of litigation:

Convenience factors:

  • Location of witnesses and evidence
  • Travel requirements for parties and attorneys
  • Costs associated with distant litigation

Jury pool characteristics:

  • Different counties have different demographic compositions
  • Urban vs. rural counties may approach cases differently
  • Local reputation or connections may influence outcomes

Court docket congestion:

  • Some counties have busier courts than others
  • Affects how quickly case proceeds to trial
  • May influence settlement timing and leverage

Judge assignment:

  • Different counties have different judges
  • Judicial philosophy and case management styles vary
  • Some counties have specialized business courts

Contractual Venue Provisions

Including venue provisions in contracts:

  • Provides certainty about where disputes will be litigated
  • Allows parties to choose convenient forum in advance
  • Can specify county within Texas
  • Generally enforceable unless manifestly unjust

Typical contract language:

  • "Venue for any legal proceeding shall be in [County], Texas"
  • "Parties agree that exclusive venue shall be in the state and federal courts of [County], Texas"
  • Should be clear and unambiguous
Forum Selection vs. Venue: Contractual provisions can address both choice of law (which state's law applies) and forum selection (which court system). Businesses operating across state lines often include both provisions to provide maximum certainty about dispute resolution.

⚠️ IMPORTANT DISCLAIMER

This article provides general educational information about jurisdiction and venue in Texas lawsuits and is not legal advice. Jurisdictional requirements, venue rules, and procedural deadlines are subject to change and involve complex legal analysis. The information provided may not reflect current requirements or be applicable to your specific situation.

Jurisdiction and venue issues involve nuanced legal questions that depend heavily on specific facts and circumstances. Constitutional requirements for personal jurisdiction, long-arm statute application, venue determination, and procedural requirements for challenging jurisdiction or venue require legal expertise. Many businesses benefit from consulting with qualified Texas attorneys for guidance on jurisdictional issues, proper venue, and strategic considerations in litigation. Always consult with experienced litigation counsel for guidance specific to your business dispute and verify current procedural requirements before taking action.

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