In a recent ruling, the Texas Business Court, under Judge Whitehill, established its authority to handle Rule 202 petitions for pre-suit discovery. In the case of In re Radical Hoops, Ltd. and Radical Mavericks II, LLC, the court considered an Emergency Motion to Remand a Rule 202 petition originally filed in district court but removed to the Business Court by the Respondent.
The Texas Government Code § 25A allows for the removal of actions to the Business Court if they fall under its jurisdiction. Previously, there was confusion over what constitutes an “action,” particularly whether it encompasses Rule 202 proceedings. The Petitioners contended that these proceedings did not qualify as lawsuits based on this definition.
However, the Court rejected this argument, concluding that “action” includes any legal proceeding aimed at enforcing a claimed right, thus agreeing that a Rule 202 petition fits this definition. The Court drew on the Texas Supreme Court’s interpretation from Jaster v. Comet II Const., Inc., which defined “action” broadly, as synonymous with “suit.”
Additionally, the Court found that the Rule 202 action fell within its jurisdiction because the Respondent’s notice of removal indicated substantial transactions exceeding US$5 million, meeting statutory requirements. The ruling clarified that the Business Court can grant the same relief as a district court in such petitions.
This decision confirms that the Business Court is accessible not just to current litigants but also to those seeking pre-suit discovery under its jurisdiction, reinforcing its expanding role within Texas’ judicial landscape.
