Texas Business Courts Hit Milestone With First Merits Decision

Texas’ nine-month-old business court system handed down its first final judgment in a case this week, resolving a dispute it took on in the fall and signaling that the nascent court could prove an efficient alternative to others.

Judge Bill Whitehill’s order dismissing claims against Primexx Energy Corp. wrapped up a case that had been lingering for two years in a state district court before his Dallas business court took it over in September.

By November, the parties had briefed and argued the case, and in March Whitehill dismissed plaintiffs’ $200 million breach of contract claim. The June 16 final order dismissed all remaining plaintiffs through an agreement from the parties.

“This is what we wanted,” said George Christian, senior counsel of Texas Civil Justice League, a pro-business group that pushed for Texas to build a courts system to rival Delaware’s Chancery Courts.

“People are going to see how quick this goes—we got our hearing, and we got our ruling,” Christian said.

Primexx beat claims involving a partner exercising its right to force minority shareholders to sell their shares when Callon Petroleum Co. purchased Primexx. The milestone judgment offers a glimpse into how Texas courts may view contractual limits on fiduciary duties.

“I think a lot remains to be seen in other outstanding cases but this shows an example of how efficiently the business courts can resolve the case on the merits,” said Marisa Secco Giles of Vinson & Elkins LLP, who wasn’t involved in the dispute.

More Cases Coming

The Primexx case is one of more than 140 that lawyers have filed in the business courts, a number observers say squares with their expectations.

In September, many more are expected to arrive provided Gov. Greg Abbott (R) signs legislation on his desk lowering the minimum controversy threshold from $10 million to $5 million.

The bill, HB 40, also lets the courts hear intellectual property disputes and enforce arbitration agreements. It provides for parties on agreement to bring cases that were previously barred over their age because they existed before the courts.

“All of those things are likely to lead to a larger number of cases being filed in the business court,” Secco Giles said.

With the first merits-based decision in Primexx checked off, the courts await their first jury trial. About three dozen cases have settings, including seven this year.

The first is scheduled for Sept. 15 in Houston.

Primexx is represented by Kirkland & Ellis. Additional defendants are represented by Lynn Pinker Hurst & Schwegmann, and Troutman Pepper Locke.

The plaintiff, Primexx Energy Opportunity Fund, is represented by Susman Godfrey LLP.

The case is Primexx Energy Opportunity Fund, LP v. Primexx Energy Corporation, Tex. Dist. Ct., No. 24-BC01B-0010, 6/16/25.