On September 1, 2024, the Texas Business Courts officially opened for proceedings. Established by the Texas Legislature in 2023, the Business Court system is intended as a Texas corollary to corporate-oriented forums like Delaware’s courts of chancery. Its purpose is to serve as a specialized court system for efficient resolution of complex commercial disputes.
Fourteen months after opening, the first case tried in the Business Courts reached its first-ever trial verdict last week. The case, brought by Marathon Oil Company, sought to establish that 2021 Winter Storm Uri relieved Marathon of its gas-supply obligations to Mercuria Energy America under force majeure. Attorneys for Marathon argued that the historic Houston-based oil company (recently acquired by ConocoPhillips in November 2024) acted reasonably to prepare for the rare and destructive weather event. Mercuria Energy responded with evidence of purported pre-storm production and scheduling issues that lead to Mercuria’s eight-figure damages invoice that precipitated the litigation.
After a five-day trial, Business Court Judge Melissa Andrews ruled that Marathon established a valid invocation of force majeure and therefore was not liable for $26.5 million in damages for failed gas deliveries during Winter Storm Uri.
Marathon’s attorneys commended the speed and streamlined procedures they experienced during the new court system’s inaugural trial. The case is Marathon Oil Company v. Mercuria Energy America LLC, No. 25-BC11A-0013 in the 11th Division of the Texas Business Court.
185 cases were filed in the Texas Business Courts’ first year of operation (Sept. 2024–Aug. 2025). The trial of the Marathon Oil case signals that these courts are equipped to efficiently and timely handle high-stakes commercial battles.