Rule 354.Action Originally Filed in the Business Court

Last verified June 28, 2026

In one sentenceRule 354 governs an action filed directly in the business court — its pleading requirements, the clerk's assignment to a division, and how venue and the court's authority may be challenged, transferred, or dismissed.

Full Text of Rule 354

Text sizeJump to: (a) (b) (c) (d)

(a) Pleading Requirements. For an action originally filed in the business court, an original pleading that sets forth a claim for relief—whether an original petition, counterclaim, cross-claim, or third party claim—must, in addition to the pleading requirements specified in Part II of these rules, plead facts to establish the business court’s authority to hear the action. An original petition must also plead facts to establish venue in a county in an operating division of the business court.

(b) Clerk Duties. The business court clerk must assign the action to a division of the business court. If the division has more than one judge, then the clerk must randomly assign the action to a specific judge within that division.

(1) To Venue. A motion challenging venue must comply with Rules 86 and 87.

(2) To Authority. A motion challenging the business court’s authority to hear an action must be filed within 30 days of the movant’s appearance.

(d) Transfer or Dismissal.

(1) Venue Transfer. If the business court determines, on a party’s motion, that the division’s geographic territory does not include a county of proper venue for the action, the business court must:

(A) if an operating division of the business court includes a county of proper venue, transfer the action to that division; or

(B) if there is not an operating division of the business court that includes a county of proper venue, at the request of the party filing the action, transfer the action to a district court or county court at law in a county of proper venue.

(2) Authority. If the business court determines, on a party’s motion or its own initiative, that it does not have the authority to hear the action, the business court must:

(A) if the determination was made on its own initiative, provide at least 10 days’ notice of the intent to transfer or dismiss and an opportunity to be heard on any objection; and

(B) at the request of the party filing the action:

(i) transfer the action to a district court or county court at law in a county of proper venue; or

(ii) dismiss the action without prejudice to the parties’ claims.

End

Notes and Comments

Comment to 2024 change: Rule 354 is adopted to implement Texas Government Code Sections 25A.006(a)-(c) and 25A.020(a)(2). Texas Government Code Section 25A.004 specifies the business court’s authority to hear an action.

Plain-English Summary

Rule 354 covers a case begun in the business court. The original pleading must set out facts establishing the court's authority to hear the action, and the clerk assigns the action to a division of the business court.

The rule then sets the challenges. A motion challenging venue follows Rules 86 and 87; a motion challenging the court's authority must be filed within 30 days. If venue is improper, the court transfers the action to a business-court division that includes a county of proper venue, or — if none does — to a district court or county court at law there. If the court lacks authority, then at the request of the party filing the action, it transfers the action or dismisses it without prejudice, giving at least 10 days' notice when it acts on its own initiative.

Frequently Asked Questions

How do you start a case in the Texas business court?

File an original pleading that sets out facts establishing the court's authority to hear the action; the clerk then assigns it to a division (Rule 354).

How do you challenge the business court's authority over a case?

By a motion filed within 30 days. Rule 354 then has the court, at the request of the party filing the action, transfer the action or dismiss it without prejudice.

Source & verification. Rule text and the official Notes and Comments are reproduced verbatim from the Texas Rules of Civil Procedure (Tex. R. Civ. P. 354), published by the Texas Judicial Branch (txcourts.gov). Promulgated by the Supreme Court of Texas. The plain-English summary is original and draws on official sources. Last verified June 28, 2026. · Official source

Also known as: action originally filed in business courtbusiness court authority challengebusiness court venueTRCP 354