Natlawreview iconNatlawreviewSep 30, 2026 ~1 min source read

Texas Business Court Clarifies Jurisdictional Limits: Existing Receiverships Remain Under Appointing Court’s Exclusive Control

62, Judge Stacy Rogers Sharp addressed whether parties could bypass an existing district court receivership by filing a new action in the Texas Business Court. By 2018, the 451st District Court of Kendall County had placed the relevant business entities – three limited partnerships – into receivership.

Texas Business Court Clarifies Jurisdictional Limits: Existing Receiverships Remain Under Appointing Court’s Exclusive Control

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62, Judge Stacy Rogers Sharp addressed whether parties could bypass an existing district court receivership by filing a new action in the Texas Business Court.

By 2018, the 451st District Court of Kendall County had placed the relevant business entities – three limited partnerships – into receivership.

After the Kendall County court entered final judgment earlier this year, with an appeal still pending, the plaintiffs pursued a separate action.

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62, Judge Stacy Rogers Sharp addressed whether parties could bypass an existing district court receivership by filing a new action in the Texas Business Court. By 2018, the 451st District Court of Kendall County had placed the relevant business entities – three limited partnerships – into receivership. After the Kendall County court entered final judgment earlier this year, with an appeal still pending, the plaintiffs pursued a separate action.

How it works

  • Statutory Framework and Exclusive Jurisdiction The Business Court's analysis centered on the interplay between two statutory schemes:
  • They sent notice removing Shalit as general partner of the business entities.
  • They then filed a motion asking the Kendall County court to convert the existing receivership into a liquidating receivership.
  • Chapter 25A of the Texas Government Code (which established the Business Court) and Chapter 11 of the Texas Business Organizations Code (whi...

Details worth keeping

Lynzara-Austin Real Estate Management, LLC, 2026 Tex. The Fourth Division concluded that they could not. When that court denied the motion and extended the existing receivership instead, the plaintiffs filed a new suit directly in the Texas Business Court's Fourth Division seeking appointment of a liquidating receiver and orders to dissolve, wind up, and terminate the partnerships.

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