A Texas business lawsuit usually moves through seven stages: pre-suit demand, petition and answer, required disclosures, discovery, dispositive motions, mediation, and trial. Most cases resolve before trial. Where and how a case settles is largely decided by choices made in the first 90 days.
What happens before the lawsuit is filed?
Most business disputes start with a demand letter. In a contract case, this matters for money: to recover attorney’s fees under Chapter 38 of the Texas Civil Practice and Remedies Code, you must present the claim to the other side and give them 30 days to pay. Claims under the Deceptive Trade Practices Act require 60 days’ written notice before suit.
This is also when you preserve evidence. Send a litigation-hold notice inside your own company and, where appropriate, demand that the other side preserve emails, texts and financial records.
Where does a Texas business case get filed?
Most Austin business cases are filed in the Travis County civil district courts. Larger disputes may qualify for the Texas Business Court, a specialized statewide court whose Third Division sits in Austin. It generally hears governance, securities and certain contract disputes above $5 million in controversy, or cases involving a publicly traded company. Arbitration clauses can move the dispute out of court entirely, so we read the contract before deciding where to file.
How fast must the defendant respond?
A Texas defendant’s answer is due by 10:00 a.m. on the Monday after 20 days have passed since service. Missing it risks a default judgment. Early motions can end weak claims quickly. Rule 91a lets a party seek dismissal of a claim with no basis in law or fact. The Texas Citizens Participation Act allows early dismissal of certain claims based on protected speech.
What is discovery, and why is it so expensive?
Since 2021, Texas requires initial disclosures within 30 days after the first answer, without waiting for a request. These include witnesses, documents and a damages computation. Cases seeking $250,000 or less follow the expedited actions process under Rule 169, with limited discovery and a faster trial setting.
In larger cases, discovery is where most of the cost lies: document production, depositions and expert reports. The Burk Law Firm takes a deliberately lean approach to discovery. We focus on the documents and witnesses that actually prove the claim, instead of running up fees on everything that could conceivably matter.
Will my case go to mediation?
Almost certainly. Travis County judges routinely order mediation before trial. Many commercial cases settle there, once each side has seen the other’s evidence.
What happens at trial, and can the result be appealed?
Either side can demand a jury. A business trial typically lasts several days to a few weeks. Appeals from Travis County generally go to the Third Court of Appeals in Austin. Appeals from the Business Court go to the Fifteenth Court of Appeals, a statewide court created in 2024.
From our case files
- Settled just before trial on full terms. We represented buyers of a large commercial tract near a medical complex after the seller misrepresented how large a building the site could support. The case settled shortly before trial: the seller took the property back, refunded the full purchase price, and paid our clients’ mid-six-figure legal fees (2022).
- Turning the case around. When a wrongdoing LLC member sued first to pose as the victim, we realigned the case so our client stood as the true plaintiff, and the opposing parties’ claims were ultimately washed out (2021).
- Stepping in late, in federal court. Taking over a hospital system’s defense late in a contract case brought by a national pharmacy-services company, we took the critical deposition and negotiated a settlement that cut the claimed amount by roughly low eight figures (2009).
Client names are withheld for confidentiality. Every case turns on its own facts, and past results do not guarantee a similar outcome. See more representative results.
When should I talk to a lawyer?
Talk to a lawyer before you send or answer a demand letter, not after you’ve been served. Deadlines, fee rights and evidence can all be lost early. The Burk Law Firm has handled Texas business disputes since 1992. Founding attorney Michael G. Burk began his career clerking for a federal district judge in Austin. Call (512) 306-9828 for a case evaluation.
Related: How Long Does a Business Lawsuit Take in Travis County? · What Should You Do Before Filing a Business Lawsuit in Texas? · Business Litigation in Austin, TX · Can You Change Lawyers in the Middle of a Lawsuit in Texas?
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.