Texas Business Court Opinion Summaries – February 4, 2025
No. 25-BC11A-001 Tiffany Lynn Sebastian, et al v. T. Bently Durant, et al. 25-bc11a-0001.pdf
[Judge Sharp]
Business Court Jurisdiction/Partial Removals. In this divorce proceeding filed by the wife, the husband filed a counterpetition adding Classic, the couple’s employer, as co-respondent based on actions Classic had taken regarding the couple’s interests in Classic; the husband and wife also filed a third-party petition that brought derivative claims on Classic’s behalf and added the Durant and the 8100 defendants. Those defendants and Classic then filed a notice of removal to the Business Court, pleading they removed the individual and derivative claims asserted by the couple, but did not agree to submit the determination of the divorce cross-petitions. The couple seek to remand the case to the district court.
Held: The Business Court lacks jurisdiction over the action because it was commenced in July 2024, and the Court only has jurisdiction over cases commenced on or after September 1, 2024. See Energy Transfer LP v. Culberson Midstream LLC, 2024 Tex. Bus. 1, 2024 WL 5320611 (October 30, 2024). The court rejects defendants’ arguments that the derivative and third-party claims on Classic’s behalf or against defendants commenced new “actions” after September 1, 2024 which permit the court to exercise jurisdiction; the Act establishing the Business Court permits a party to “remove the action” – not independent claims to the Business Court. TEX. GOV’T CODE Sec. 25A.006(d); the Court “holds that the Removing Parties’ opposed notice of partial removal could not unilaterally divide the case into a new ‘civil action’ for purposes of Section 8.” Further, “under the Act’s Section 8, civil action refers to the entire lawsuit, including the divorce cross-petitions and the later-filed claims involving the removing parties.” Remanded to the 387th Judicial District Court of Fort Bend County, Texas.
For a similar case rejecting a partial removal, see Osmose Utils. Servs., Inc. v. Navarro Cnty. Elec. Coop, 2025 Tex Bus. 3, 24-BC01A-011 (Jan. 31, 2025) (summarized below).