On May 29, 2026, the Texas Business Court held in Brown v. Exxon Mobil Corporation, 2026 Tex. Bus. 35 (11th Div.), Cause No. 25-BC11B-0099, that an employment race discrimination claim brought under Section 21.051 of the Texas Commission on Human Rights Act (TCHRA) does not fall within the Business Court’s jurisdiction. The decision draws a jurisdictional line: employment disputes, even those involving corporate officers and equity compensation, generally do not qualify as “internal affairs” within the meaning of Chapter 25A of the Texas Government Code.
Artis M. Brown, a 29-year employee of Exxon Mobil Corporation (“Exxon”) and a Vice President of a division within Exxon, was terminated in July 2025 after a random drug test. Exxon contends that Brown tested positive for THC and later resigned after meeting with human resources. Brown alleges that Exxon unlawfully terminated him because of his race and that non-Black executives who committed comparable policy violations received different treatment. After his termination, Exxon canceled approximately $5 million in unvested restricted stock units (“RSUs”) awarded to Brown through annual incentive agreements. After receiving a right to file his lawsuit from the Texas Workforce Commission, Brown filed suit in the District Court of Harris County, asserting a claim for race discrimination under Section 21.051 of the TCHRA. Exxon removed the case to the Business Court, and Brown moved to remand.
Exxon asserted two bases for...
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