Andrews, J. | January 3, 2025
On a motion to remand, the Court decides issues of statutory construction and procedure relating to the scope of the Business Court’s jurisdiction under Section 25A.004(e) of the Government Code and the burden-shifting framework for challenges to amount-in-controversy pleadings in the removal context.
First, the Court holds that Section 25A.004(e), which grants the Court jurisdiction over actions that seek “injunctive relief or a declaratory judgment” and involve “a dispute based on a claim within the court’s jurisdiction under Subsection (b), (c), or (d),” incorporates the amount-in-controversy limit (or exception) of the underlying Subsections—i.e., Subsection (b)’s $5 million limit, Subsection (d)’s $10 million limit, or Subsection (c)’s exemption from any amount-in-controversy limit. Here, the removing party invokes Subsection (b) as underlying the Court’s 1 jurisdiction over this action for injunctive and declaratory relief. As a result, the Court has jurisdiction only if the value of the rights at issue exceeds $5 million.
Second, the Court holds that when, as here, the notice of removal pleads that the value of the rights at stake are within the Court’s jurisdiction and the petition does not plead otherwise, the party moving for remand bears the initial burden of showing that the amount pleaded is fraudulent or that a different amount is readily established, such as by statute. The Court adopts the same burden-shifting framework applied to jurisdictional challenges raised through pleas to the jurisdiction and motions for traditional summary judgment, such that the movant bears the initial burden on the pretrial motion but the party asserting jurisdiction bears the ultimate burden of proof at trial.
The Court also denies a request for attorney’s fees and holds that the movant has not met its burden of proving that a venue clause in the Company Agreement applies to this action or that it binds Defendants, who are not signatories.