Milestone for Texas Judiciary: First-Ever Business Court Jury Returns Verdict in Powers v. Berry Ownership Dispute

Texas Business Courts

In a groundbreaking development for Texas jurisprudence, the Texas Business Court delivered its first-ever jury verdict on February 20, 2026, in a contentious ownership dispute involving a proposed deepwater crude oil export terminal. This verdict not only resolved a multimillion-dollar commercial conflict but also underscored the innovative role of the newly established Business Court in handling complex business litigation efficiently and with procedural flexibility.

The Texas Business Court, a statewide specialized tribunal, was created through legislation signed by Governor Greg Abbott in 2023 and began accepting cases on September 1, 2024. Designed to rival established forums like Delaware’s Court of Chancery, the Business Court aims to attract businesses to Texas by offering expedited resolutions for high-value commercial disputes, promoting consistency in rulings, and building a robust body of business law through mandatory written opinions on key issues. Unlike the Chancery Court, which relies solely on bench trials, the Texas model provides parties with the option of jury trials, drawing on America’s longstanding tradition of using juries to resolve factual disputes in civil matters. This flexibility allows litigants to choose between a judge, a jury, or a combination, tailoring the process to the case’s needs.

The court’s structure includes 11 geographical divisions, with initial operations in five major cities, including Houston (encompassing Harris County). Judges are appointed by the governor and must possess at least a decade of experience in complex business litigation, transactional law, or civil judging, ensuring specialized expertise. Jurisdiction covers disputes exceeding $5 million or $10 million thresholds, depending on the claim type, such as corporate governance, breach of fiduciary duties, or qualified transactions. By streamlining procedures and reducing docket congestion, the Business Court seeks to foster a predictable legal environment that encourages corporate incorporation and headquarters relocation to Texas, countering trends like “Dexit” from Delaware.

The landmark case, Powers v. Berry, exemplifies these objectives. Originating from a 2019 investment agreement, the dispute centered on plaintiff Albert “Ted” Powers’ claim to a 20% ownership stake in Axis Midstream Holdings LLC, the entity behind an ambitious crude oil export terminal project near Corpus Christi. Powers, an experienced investor and transactional attorney, was enlisted by the Berry family to secure financing and structure the venture, which aimed to transport oil from the Permian Basin and Eagle Ford Shale for global export.

Under the agreement, Powers received monthly compensation and an equity interest upon meeting certain milestones. Tensions escalated after the U.S. Army Corps of Engineers granted a key federal permit in October 2024, leading to allegations that the defendants attempted to exclude Powers from management and ownership. The case, valued at up to $200 million, involved intricate issues of contract enforcement, fiduciary duties, and corporate authority, precisely the type of sophisticated matter the Business Court was established to adjudicate swiftly.

Transferred to the 11th Division under Presiding Judge Sofia Adrogué, the litigation featured extensive pretrial activity, including injunctive relief to maintain the status quo, multiple appeals, and voluminous motion practice. Jury selection (voir dire) occurred on February 9, 2026, in the historic 1910 Harris County Courthouse, which lacked a jury box and thus could not host the full trial. The proceedings then moved to multiple venues, including a small courtroom on the seventh floor of the Harris County Family Law Center for opening statements and initial testimony. A pipe leak briefly closed that building overnight, forcing further relocations. Over the two-week period (February 9–20), the trial utilized five different courtrooms across three buildings, with additional sessions in spaces like the Civil District Courthouse.

After less than five hours of deliberation, the jury returned a 10-2 verdict in favor of Powers on a comprehensive 20-question jury charge. It affirmed the validity of the 2019 agreement, found the defendants in breach for denying Powers’ ownership interest, and dismissed counterclaims alleging breaches by Powers. This outcome reinforces the enforceability of negotiated commercial agreements in large-scale infrastructure projects.

As the Business Court’s inaugural jury trial, Powers v. Berry demonstrates the system’s capacity to manage high-dollar, technically demanding cases with speed and citizen involvement. It signals Texas’ commitment to a modern, business-friendly judiciary, potentially influencing how parties structure disputes and forum selections moving forward. While the long-term efficacy of jury options versus bench trials remains to be seen, this case illustrates the practical benefits of the Texas Business Court’s hybrid approach in resolving real-world business conflicts.