Will My Case Be in Federal or Texas State Court?

If you’ve been involved in a car accident and are considering a personal injury claim, one of the first questions you may have is whether your case will be filed in Texas state court or federal court. The answer is not always straightforward because it depends on several factors, including who caused the accident, where the parties live, and whether the defendant is an individual or a business. Understanding the rules around jurisdiction can help you make informed decisions and work with your attorney to pursue your claim effectively.

Who Caused the Accident?

The most important factor in determining where your case will be filed is who caused the accident. If the at-fault driver is a federal employee, your claim may need to be filed under the Federal Tort Claims Act, which means your case would be handled in federal court. Federal jurisdiction applies because the United States government and its employees are involved. In most cases involving federal employees, the defendant may attempt to remove the case to federal court under federal question jurisdiction.

For the majority of car accidents, however, the at-fault driver is a private individual or business. If the person resides in Texas, your case will almost always be filed in Texas state court. Texas courts are generally the default forum for personal injury claims that occur within the state and provide the rules for liability, damages, and procedure that guide these cases.

Cases Involving Companies or Businesses

If your accident involves a business rather than an individual, the question of jurisdiction depends on where the company is incorporated or has its principal place of business. If the company is a Texas corporation or has its main office in Texas, the case will likely remain in state court. On the other hand, if the company is incorporated in another state or has its principal place of business outside Texas, the plaintiff may have the option to file the case in federal court under diversity jurisdiction.

Diversity jurisdiction allows a federal court to hear a case when all plaintiffs are from different states than all defendants and the amount in controversy exceeds $75,000. In such cases, defendants may attempt to remove the case from state court to federal court, claiming that federal jurisdiction applies. Your attorney can evaluate whether removal is likely and advise on strategies to keep the case in state court if that forum is more favorable to the plaintiff.

Out-of-State Defendants and Residents

Special considerations arise when one or more parties reside outside of Texas. Diversity jurisdiction may not apply unless certain conditions are met. For example, the “forum defendant rule” generally prevents a defendant who is a Texas resident from removing a case to federal court even if all parties are diverse. Additionally, if the amount in controversy is pled to be less than $75,000, federal courts typically do not have jurisdiction. In some cases, additional defendants or plaintiffs may be added to eliminate diversity jurisdiction, or procedural strategies may be used to challenge removal and keep the case in Texas state court.

Why Venue and Jurisdiction Matter

Deciding where to file a personal injury claim is not just a legal technicality—it can have a real impact on your case. State courts are often considered more favorable for plaintiffs in car accident cases because they tend to be more familiar with Texas personal injury laws, and judges and juries may be more accessible to the injured party. Federal courts, while fair and impartial, often have stricter procedural rules, longer timelines, and judges who handle large and complex caseloads that can affect how your case is managed.

Other factors can also influence the decision, such as whether multiple defendants are involved, the amount of damages being sought, and strategic considerations related to discovery and pretrial motions. Because of these variables, it is critical to consult with an experienced personal injury attorney who can assess the facts of your case and determine the best forum for filing.