January McGovern Law Newsletter
Hello,
Everyone at McGovern Law would like to welcome you, your families, and organization into the new year. We are excited about what’s ahead of us in 2025! Thank you for putting your continued trust in McGovern Law.
Introducing the Texas Business Court System: A Game-Changer for Texas Businesses
Texas has taken a significant step to solidify its position as a leading state for business innovation and growth. With the launch of the new Texas Business Court system, businesses in the Lone Star State now have access to a specialized forum for resolving complex commercial disputes. This system aligns Texas with Delaware, long considered the gold standard for business litigation, while offering distinct advantages to Texas-based companies.
Overview of the Texas Business Court System
The Texas Business Court, established by the 2023 Texas Legislature, is designed to handle complex commercial cases efficiently and expertly. The court focuses exclusively on disputes involving corporate governance, shareholder rights, breaches of fiduciary duties, trade secrets, and other intricate business matters. Key details include:
- Exclusive Jurisdiction: Cases involving disputes with over $5 million in controversy, corporations, and LLCs are prioritized.
- Specialized Judges: Judges with expertise in business law are appointed, ensuring informed and consistent rulings.
- Streamlined Processes: Procedural rules are designed to expedite resolution, reducing delays and associated costs.
- Statewide Reach: The court serves businesses across Texas, with an emphasis on accessibility, equity, and expert level knowledge of business and commercial disputes.
Texas vs. Delaware: How Texas Measures Up
Delaware has long been favored by businesses due to its Court of Chancery, which specializes in business disputes. With the introduction of the Texas Business Court, Texas now offers comparable benefits:
- Expert Judges: Like Delaware’s Court of Chancery, the Texas Business Court employs judges with deep expertise in corporate and commercial law.
- Predictability: Businesses benefit from consistent rulings informed by a specialized body of case law.
- Lower Cost of Litigation: Texas’s business-friendly court fees and operating costs often make it more economical than Delaware.
- Home-State Advantage: Texas-based businesses can litigate closer to home, saving time and resources while building on the state’s strong business infrastructure.
Advantages for Texas-Based Businesses
The Texas Business Court is not just a copy of Delaware’s system—it offers distinct advantages tailored to the Texas business community:
- Pro-Business Legislation: Texas’s legal and regulatory environment continues to foster innovation and growth, providing a complementary framework to the new court system.
- Economic Growth Potential: By resolving disputes more quickly and effectively, Texas businesses can maintain focus on expansion and innovation.
- Enhanced Global Competitiveness: As a global economic hub, Texas can now better compete for businesses seeking a reliable, efficient, and business-savvy jurisdiction for litigation.
What This Means for Your Business
The Texas Business Court system represents an opportunity for Texas companies to benefit from a fair, efficient, and accessible legal system designed specifically for complex commercial disputes. Whether you’re navigating corporate governance issues, enforcing shareholder agreements, or protecting intellectual property, the Texas Business Court ensures a level playing field for all parties.
At McGovern Law we are closely monitoring the development of the Texas Business Court and its potential impact on businesses like yours. If you have questions about how the new court system could benefit your company or need assistance navigating a business dispute, our team of experienced attorneys is here to help.
Contact us today to learn more about how we can support your legal and business needs in this exciting new era for Texas businesses.
Tax Season is here!
Tax season has officially begun! If you’re a business owner, be sure to file and deliver 1099s and W-2s no later than January 31st. If we did any work for you during 2024 and you need a W-9 from us, please contact Jennifer Fernandez ([email protected].)
Reminder: Complimentary Annual Legal Reviews
We’ve now started our new complimentary annual legal reviews. This is your opportunity to have a 30-minute call or meeting with your primary attorney at the firm at no charge. This is an opportunity for us to understand any changes that have occurred in your business since we last met and discuss upcoming plans and transactions to ensure we clean up your legal documents and have the right legal strategy in place for this year.
We will be reaching out to schedule this meeting but if you want to get an early start, just reach out to Jennifer Fernandez ([email protected]) to get it on the calendar.
Mike McGovern speaking at Geekdom
Mike will be speaking about Raising Capital at Geekdom later this month. Geekdom is a coworking space and community serving the startup community in the San Antonio area. Mike McGovern’s workshop will focus on the various structures and types of securities commonly used when raising capital, regulatory dos and don’ts, disclosure requirements and considerations for avoiding securities fraud claims. He’ll also talk about some of the pros and cons of different strategies for raising capital. This is a great opportunity to learn valuable insights and practical tips from an expert in the field.
Event details:
Wednesday, January 29th, 12pm – 1pm CST
110 East Houston Street, 7th floor
San Antonio, TX 78205
Learn more and register here.