What types of business disputes are most common in Austin, TX?

In Austin’s fast-growing and diverse economy, business disputes are common across sectors like tech, real estate, and entertainment. Breach of contract is the most frequent issue, especially involving startups, construction firms, and event organizers. Other prevalent conflicts include partnership disagreements, employment claims, and rising intellectual property disputes tied to the city’s tech and creative industries. These disputes are typically resolved through negotiation, arbitration, or litigation, depending on the context.

How long does a commercial litigation case take in Travis County courts?

In Travis County, Texas, commercial litigation cases—such as partnership and shareholder disputes—typically last between 1 to 2 years, though complex cases or those proceeding to trial can take longer. The process includes several stages: initial filings (1–3 months), discovery (6–12 months), motion practice (2–6 months), and trial prep (3–6 months), with the trial itself ranging from a day to several weeks. Settlement discussions can occur at any time, often post-discovery, and appeals may extend the case by another 1–2 years. Factors like case complexity, discovery volume, court congestion, and lingering COVID-era backlogs influence duration, but digital court tools and mandatory mediation have improved pre-trial efficiency.

Do I need a lawyer to resolve a business dispute in Texas, or can I mediate it myself?

Mediation in Austin is a confidential, cost-effective way to resolve business disputes with help from neutral third parties, often preserving relationships better than litigation. Local providers like the DRC, JAMS, Lakeside Mediation, and Alternative Law offer various mediation services. Texas courts may order mediation before trial, but if it fails, litigation—including trial and appeals—may follow, with business courts handling complex cases efficiently. While not required, having a lawyer can help assess your case, negotiate effectively, and provide representation if litigation is needed.

What should I include in a Texas business contract to avoid future disputes?

To avoid disputes in a Texas business contract, include clear provisions tailored to your business needs and Texas law. These should cover parties, scope of work, payment terms, duration, dispute resolution, and legal clauses like indemnification, confidentiality, and jurisdiction. A Texas business attorney is key to drafting enforceable terms.

What are the steps to take if your business is being sued in Austin?

If your business is sued in Austin, Texas, it's crucial to act quickly—typically within 20 days plus the following Monday—to file a legal response. Consult a business litigation attorney immediately to evaluate the lawsuit's validity, determine proper jurisdiction, and prepare an Answer or motion. Preserve all relevant evidence, follow court-mandated discovery, and consider mediation or settlement, which is often required before trial in Travis County. If the case proceeds to trial or appeal, comply with court rulings and use the experience to improve internal practices and reduce future legal risk.

What Should a Texas LLC Company Agreement Include?

Members signing a Texas LLC company agreement

A Texas LLC company agreement — what most states call an operating agreement — should cover ownership and capital, management and voting, distributions, transfers and buyouts, fiduciary duties, deadlock, and how disputes are resolved. Texas doesn’t require one, but without it, the default rules in Chapter 101 of the Business Organizations Code decide those questions for you, and they rarely match what the founders intended.

Why do Texas LLC owners end up in court?

From the litigation side, the same gaps come up again and again:

A handshake split such as “we’re 50/50,” with no written rule for deadlock
No obligation to distribute profits, so a controlling member keeps the cash in the company
No way out: Texas members generally cannot withdraw unless the agreement allows it
Unclear authority, so one member signs contracts or takes loans the others never approved
Silence about what happens when a member stops working in the business

What should the agreement cover?

Ownership and capital. Who contributed what, ownership percentages, and whether members must contribute more capital later. Also what happens if someone doesn’t.
Management. Member-managed or manager-managed, and which decisions need a majority, a supermajority, or unanimous consent. Common examples are selling the business, taking on debt, admitting new members and changing compensation.
Distributions. Whether and when profits are paid out, including tax distributions so members can pay tax on income allocated to them.
Transfers and buyouts. Restrictions on selling to outsiders, rights of first refusal, and buy-sell terms for death, disability, divorce and departure.
Duties. Texas lets an LLC agreement expand or restrict members’ and managers’ duties, within limits. Spell out what is expected, including whether members may compete with the company.
Information rights. Access to financial statements and records beyond the statutory minimum.
Deadlock. A tie-breaker, mediation, or a “shotgun” buy-sell for 50/50 companies.
Dispute resolution. Mediation first, then court or arbitration, with venue in Travis County or wherever makes sense, and a prevailing-party fee clause.

Can’t I just use an online template?

A template is better than nothing, but templates are written for no one in particular. They often leave out deadlock provisions, tax distributions and Texas community property issues. Some are drafted for other states’ laws. The cost of a tailored agreement is small compared with the cost of litigating over a missing clause.

Can we change our company agreement later?

Yes, as the agreement allows, usually by a set vote of the members. Updates make sense when new investors join, a founder steps back, or the business changes direction. Amend the agreement before the disagreement, not during it.

From our case files

A member who stopped contributing. In a multi-member hospice LLC, a member who no longer participated or contributed was compelled to be bought out for a low-five-figure sum after we filed suit (2025). Clear contribution and buyout terms can avoid that lawsuit.
Agreements built for the business. We have drafted customized company agreements for physician practices, family real estate LLCs, a cattle ranching operation, an oil company, art galleries and tech startups, including a 2025 company agreement revision and noncompete for a tech startup.
Planning for the next generation. For several physicians, we set up LLCs with children or children’s trusts as members, for asset protection and to avoid probate and estate taxes (2024–2025).

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.

The Burk Law Firm drafts company agreements for Texas LLCs with the disputes we litigate in mind. Call (512) 306-9828.

This article is general information, not legal advice. Reading it does not create an attorney-client relationship.

Monday:	8 AM - 5 PM
Tuesday:	8 AM - 5 PM
Wednesday:	8 AM - 5 PM
Thursday:	8 AM - 5 PM
Friday:	8 AM - 5 PM
Saturday:	Closed
Sunday:	Closed