2025 in Review: The Legal and Economic Forces That Shaped the Year
Throughout 2025, the Texas legal market experienced significant changes including the first verdict from the newly launched Texas Business Courts to AI-driven legal practice initiatives, large company relocations, ongoing tariff and other global issues affecting deals, and more. It’s been an active year for the legal bar in 2025! View the published article by AZA on that Verdict. Looking back at these changes may provide useful insight for firms as they plan for 2026. Texas Business Courts With many 2025 statutory changes since the Fall 2024 statutory creation of the Texas Business Courts (88th Legislature Created by House Bill 19), the Court’s first verdict was issued in Fall 2025 after a 5-day trial: Marathon Oil Company v. Mercuria Energy America LLC, No. 25-BC11A-0013, in the 11th Division. This landmark verdict clearly demonstrates the impact of business litigation going forward in Texas. The Texas Business Court began hearing cases in Fall 2024. Divided into 11 divisions, the Business Court was designed to provide a specialized venue for commercial disputes that meet certain criteria per the Texas Government Code. For example, Business Court Administrative Judges must be subject-matter experts with no less than 10 years of commercial law experience (preferably also prior Bench experience). After determining the appropriate venue, commercial litigants may shift from the traditional District Court to the Texas Business Court to achieve success more efficiently. Read more about the Local Rules of the Business Court. AI’s Impact on the Legal Industry In 2025, legal teams continued to enhance their daily usage of artificial intelligence. Many teams have shown consistent growth in efficiency and workflow processes leading to reshaping personnel structure and legal staffing. AI platforms sped up legal research, document review, and routine drafting. Thomson Reuters Legal reports thatusage of these tools allow attorneys to spend more time on team and business development, practice strategy, and other complex, substantive matters. For many firms, AI helped lawyers do more, rather than replacing their expertise. With increased production, legal staffing has changed throughout 2025. Reuters noted that Big Law began to rethink the usual pyramid manpower structure. Overseeing work through new technology has led to different hiring strategies. Yet 2025 also showed the risks of adopting AI too quickly. Some courts penalized cases with mistakes from AI-generated filings, showing why ethical checks and human review are important. Regulators and professional groups have continued debating about the responsible use of AI— rules, regulations, and oversight will remain very important in 2026. By the end of the year, knowing how to use AI arguably became a big advantage. Firms that spent time on training, setting policies, and beginning regular usage of AI are likely better prepared for what’s next. Law Firms Entering Texas and Accelerated Market Growth In 2025, law firms continued to expand in Texas. To name a few: Perkins Coie announced a new office in Dallas. Clausen Miller hired more staff across Texas. Ahmad, Zavitsanos and Mensing (AZA) formally announced a new Dallas location, formally opening in January 2026. Offit Kurman opened in Dallas. Winston and Strawn added 23 partners in Texas. Fennemore grew its presence by partnering with Schmoyer Reinhard LLP in San Antonio. Bloomberg Law reported that firms from outside Texas kept fueling the state’s growth, drawn by chances in corporate, energy, healthcare, and commercial law. Studies from Georgetown Law and ELR Legal Search show that Texas is one of the busiest legal markets in the country. This expansion including into key Texas markets, has increased demand for strong legal talent. 2025 has been a year of increased pressure on hiring and retention of valuable producers. Texas legal teams have sought ways to stand out, build stronger cultures, and plan to remain competitive in 2026 and beyond. Tariff Impact on Texas Commerce While the legal industry changed, Texas businesses continued to face economic challenges from tariffs and uncertain trade policies. Reports from the Dallas Federal Reserve, the Texas Tribune, and Fox Business showed that tariffs raised costs, disrupted supply chains, and affected consumer prices in 2025. Imported goods raised input costs for Texas companies, especially in manufacturing, construction, and energy. Many businesses responded by raising prices, which softened demand in some markets. Supply chain and shipping challenges have combined with these other factors to slow and/or reduce transactions, marking a workflow decrease for transaction-focused legal teams. Companies will look to legal counsel in 2026 for continued guidance in navigating these troubled waters. Looking Ahead The events of 2025 showed that new court systems, legal innovation, market growth, and economic policy are interconnected. Texas Business Courts are rolling. AI changed how legal work gets done. Law firm growth made Texas even more important as a legal center. Tariffs made things more complicated and uncertain for industries that depend on global trade. For law firms and legal professionals, the main takeaway from 2025 is that success comes from being adaptable, planning ahead, and making smart choices. As 2026 begins, firms that invest in technology, talent, and understanding the market will be ready for whatever comes next. Our Collier Legal Search team wishes you a wonderful holiday season.
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