Business Court Reaffirms Bright-Line Rule: Pre-September 1, 2024 Cases Cannot Be Removed
Judge Andrea K. Bouressa
Decided December 16, 2024
Mem. Op.
Jurisdiction & Remand
In Seter v. Westdale Asset Management, Judge Bouressa granted remand of a case removed from Dallas County Court at Law, holding that the Business Court lacks jurisdiction over actions commenced before September 1, 2024. The decision marks the seventh remand order applying the statutory effective date as a jurisdictional bar, with the court expressly rejecting defendants' arguments that the prior six remand decisions were wrongly decided.
Court Staff Summary
Granting a motion to remand the case back to district court, when the case was originally filed in district court before September 1, 2024, and then removed to Business Court.
Background and Procedural Posture
Christopher Seter filed suit against Westdale Asset Management, Ltd., JGB Ventures I, Ltd., Joseph Beard, and Westdale Investments, L.P. in Dallas County Court at Law No. 3 before September 1, 2024. After the Business Court became operational, defendants removed the case to Division 1 of the Business Court. Seter moved to remand on two grounds: that the action commenced before the statutory effective date, and that the amount in controversy fell outside the Business Court's jurisdictional threshold.
The Jurisdictional Question
The central issue was whether the Business Court has authority over cases filed in county court at law before its September 1, 2024 effective date but removed afterward. Plaintiff argued that the plain language of H.B. 19 bars such removal. Defendants contended that prior remand orders reaching this conclusion were wrongly decided, though the opinion does not detail their specific arguments.
The Court's Analysis
Judge Bouressa applied the unambiguous statutory text of the enabling legislation, which provides that the Business Court
"is created September 1, 2024" and that "changes in law made by this Act apply to civil actions commenced on or after September 1, 2024."The court noted this was the seventh such remand order, citing six prior decisions establishing the same rule. As the court explained in Energy Transfer,
"this court does not have authority over cases filed before September 1, 2024", while Jorrie v. Charles held that
"[b]ecause this suit commenced before that date, the court lacks jurisdiction to adjudicate it."
The court found defendants' challenge to this line of authority unpersuasive, stating:
The Court is unpersuaded by Defendants' arguments that these cases were wrongly decided.Because it was undisputed that the action commenced before September 1, 2024, Judge Bouressa granted remand without reaching plaintiff's alternative argument regarding amount in controversy.
Significance for Texas Commercial Practice
This decision reinforces what is now a consistent rule across the Business Court's first term: the September 1, 2024 commencement date operates as a bright-line jurisdictional bar. With seven remand orders now on the books applying this principle, removal counsel face an uphill battle arguing that pre-effective-date cases can be transferred to the Business Court. The opinion's brief treatment of defendants' arguments—without summarizing them—reflects the court's view that the six prior decisions provide sufficient precedential foundation. Practitioners should note that Judge Bouressa declined to reach the amount-in-controversy question, leaving that as an independent basis for remand that may be dispositive in future cases where the commencement date is on or after September 1, 2024.