Texas Business Court Rejects Exxon Bid Over $5 Million Bias Claim
Updated
Updated · The National Law Review · Jul 20
Texas Business Court Rejects Exxon Bid Over $5 Million Bias Claim
2 articles · Updated · The National Law Review · Jul 20
Summary
$5 million in canceled Exxon RSUs did not bring Artis Brown’s race-discrimination suit into Texas Business Court, which remanded the case to Harris County district court.
Judge Sweeten held Brown’s claim arose from alleged discrimination under the Texas Commission on Human Rights Act, not from Exxon’s internal governance, even though Brown was a vice president and the CEO took part in the termination decision.
The court also rejected Exxon’s argument that Brown’s incentive awards were a qualifying transaction worth at least $5 million, finding the stock units were part of damages rather than the source of the claim.
The May 29 ruling narrows Chapter 25A’s reach by signaling that officer status or equity compensation alone will not shift employment disputes into the still-developing Texas Business Court.