Background and Procedural History

This joint permissive appeal challenged the Business Court's order remanding a civil action that was commenced before September 1, 2024, to the Harris County district court. The case involved a commercial dispute between Lone Star NGL Product Services LLC (in its own capacity and as assignee) and EagleClaw Midstream Ventures LLC and CR Permian Processing, LLC. The Business Court issued its remand order on December 20, 2024, and the parties jointly appealed that decision to the Fifteenth Court of Appeals.

The Transitional Jurisdiction Question

The central issue was whether Section 8 of House Bill 19—the 2023 legislation that created the Business Court—operated as a jurisdictional limitation preventing the Business Court from exercising jurisdiction over cases commenced before its September 1, 2024 effective date. The parties jointly contended that amendments in House Bill 40 altered this analysis when parties agree to remove a civil action that commenced before the effective date and the case otherwise meets the Business Court's jurisdictional requirements.

The Fifteenth Court's Analysis and Disposition

On July 31, 2025, the Fifteenth Court of Appeals concluded "that in light of the amendments in House Bill 40, Section 8 of the act that created the Business Court in 2023 (House Bill 19) is not a jurisdictional limitation when the parties agree to remove a civil action that commenced before September 1, 2024, and the case otherwise meets the Business Court's jurisdictional requirements." Rather than finally disposing of the appeal, the court abated the proceedings and remanded the case to the Business Court with instructions "to determine whether to grant permission to proceed in the Business Court pursuant to Section 25A.021 of the Texas Government Code."

On September 29, 2025, the parties filed a joint status report informing the appellate court that the Business Court had granted their request to proceed in the Business Court in light of Section 25A.021. The parties requested that the appellate court vacate the Business Court's December 20, 2024 remand order and remand the case to the Business Court for further proceedings. The Fifteenth Court granted the request, ordering: "Accordingly, we reinstate the appeal, vacate the Business Court's remand order, and remand this case to the Business Court for further proceedings."

Implications for Pre-Effective-Date Cases

This memorandum opinion addresses the Business Court's jurisdiction over cases commenced before September 1, 2024, when the parties agree to proceed in that forum. The decision confirms that Section 8 of House Bill 19 does not bar consensual removal of such cases following the amendments in House Bill 40, provided the case otherwise satisfies the Business Court's jurisdictional requirements and the court grants permission under Section 25A.021.