After a Dallas district court rejected Ken Paxton’s legal challenge against the State Fair’s gun ban, he appealed to the new 15th Circuit Court of Appeals – an appeals court that began accepting cases on Sept. 1. This court is a part of Texas. ‘ A new system of commercial courts, which was designed to settle complex commercial disputes.
Although this appeal may be at the level of a new court, it is not the type of case it was intended to handle. Paxton’s decision to bring this politically charged and legally questionable case to this new court undermines its intended purpose and hinders its successful launch.
The establishment of the Texas business court system was intended to help build a legal business environment for businesses operating in Texas. By providing special courts for business disputes, the goal was to attract more businesses to Texas by providing a venue to resolve complex issues involving contracts, agreements and corporate governance. An example was the well-respected and professionally run court system that Delaware developed over the years for business law.
The new 15th Circuit Court of Appeals will hear all appeals from commercial courts nationwide. The 15th Circuit also has jurisdiction over a wide range of cases involving state government or the unification of state laws. That additional authority was intended to promote uniformity across the country and address a perceived problem with the 3rd Circuit Court of Appeals in Austin, which has traditionally heard many such appeals.
State Fair case starts Court 15 on wrong foot. It is clear that the case has nothing to do with federal government.
Additionally, the Paxton case directly conflicts with Texas property and contract law. The relevant law allows a property owner to prohibit firearms on the premises. As the lessor of the city of Dallas, the State Fair has a leasehold interest in the property that brings it within the scope of that statute. Paxton’s position is that state laws regarding the right to carry firearms on public lands override State Fair contract rights. That position directly contradicts the long-standing principle that Texas courts provide strong protections to the freedom of contract.
Asking the 15th Court to oppose that principle, in its first high-level case, directly contradicts the fundamentals of establishing that court as the best place to resolve commercial cases. It is also a waste of resources. Commercial courts are meant to deal with issues that have a major impact on the business environment, not landlord-tenant disputes, which are well suited to the jurisdiction and expertise of long-established courts.
It is not the answer that the 15th Circuit has jurisdiction over commercial court cases. The problem in the State Fair case stems from the tension between two laws created by the Legislature – one that protects the right of people to carry firearms in public places, and the other that protects the rights of private property owners to control what happens to their property.
The solution to this problem is also the Legislature, which has reformed Texas gun laws in almost every legislative session for at least a decade. Anything the courts do this year is, in effect, on hold until the Legislature makes a definitive ruling on the matter in 2025. There is nothing pressuring the matter to be the first hearing. of the highest order will be handled by the Fifteenth Court. 15th court.
The credibility of commercial courts depends on their sense of impartiality and their knowledge of commercial law. Companies come to courts like the Delaware Court of Chancery precisely because they provide specialized knowledge and focus on business law. Paxton’s politically-charged appeals risk establishing the perception of business courts as another step toward political elites.
David Coale is a Dallas attorney.
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