Mr. Valanzano
Business Law
Dispute Resolution
 Litigate – taking a dispute to court
 In some cases, people decided to quickly to take a dispute to court. The
issue could have been settles themselves or by a third party.
 Mediator – a person who tries to develop a solution acceptable to both
sides of a dispute
 A mediator’s actions are advisory and are not legally binding.
 Arbitrator – a person who holds an informal hearing to determine what
happened
 An arbitrator’s decision is legally binding and could be enforced by a
court order if necessary.
 Using a third party is cheaper and quicker than going to trial.
Courts
 Court – a governmental forum that administers justice under the
law
 Courts decide civil disputes and criminal cases.
 A court may award damages in civil cases, impose punishment in
criminal cases, or grant other appropriate relief.
 Courts follow impartial and thorough procedures to make
decisions.
 In a trial, witnesses are compelled to give testimony and the
accused party (defendant) is allowed equal opportunity to argue
their side of the case.
 The accusing party is called the plaintiff.
Trial Courts
 Trial Courts – the first court to hear a dispute
 Original Jurisdiction – power to hear the case in full
for the first time and make the first ruling
 People involved in a trial:
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Judge
Lawyers
Clerks – enter cases on the court calendar, keep records of
proceedings, and compute court costs
Sheriffs or Marshals – serve as bailiffs who summon witnesses,
keep order in court, and take steps to carry out judgments
Juries – citizens sworn by a court to decide issues of fact in
court cases
Appellate Courts
 Appellate Courts – reviews decision of lower courts when a party claims
an error was made during the previous proceeding
 Appellate courts do not hear witnesses and generally do not accept new
evidence.
 Concerned with errors of law rather than questions of fact.
 Appellate courts review a transcript (verbatim record) of the trial and
appellate briefs (arguments on the issues of law.
 After listening to the attorneys’ arguments and question attorneys
about a case, the appellate court will decide if the decision should be:
 Affirmed (upheld)
 Reversed (overturned)
 Amended (changed)
 Remanded (sent back to trial court for corrective action or
possibly a new trial)
Federal Court System
 3 levels of federal courts – federal district courts,
federal courts of appeals, and the U.S. Supreme Court
 General Jurisdiction – a court can hear almost any type
of case
 Special Jurisdiction – a court hears only one specific
type of case
Federal District Courts
 Lowest level of federal court with general jurisdiction.
 Trial court of the federal court system.
 Power to determine facts and make initial determinations
of the law to use in deciding a case.
 Federal district courts have original jurisdiction over:
 Federal questions or cases that arise under the
Constitution, U.S. laws, and U.S. treaties
 Lawsuits between citizens of different states
 Lawsuits between a U.S. citizen and a foreign nation
 Lawsuits between a U.S. citizen and a citizen of a foreign
nation (over $75,000 must be in dispute)
Federal Courts of Appeals
 Have appellate jurisdiction over federal district courts,
certain specialized federal courts, and many federal
administrative agencies.
 No appellate court, not even the Supreme Court, can
change the factual determinations of a jury.
 There are 13 federal courts of appeal:
 12 are responsible for an assigned area of the U.S.
 1 is dedicated to the “federal circuit” which handles
patent cases and appeals from federal courts with
special jurisdiction
The U.S. Supreme Court
 Has both original and appellate jurisdiction.
 Original jurisdiction over “cases involving ambassadors,
other public consuls, and cases in which a state will be one
party.” (Constitution)
 Appellate jurisdiction over cases on appeal from federal
courts of appeals and highest state courts.
 Writ of Certiorari – an order from the Supreme Court to
turn over the record of the case for review
 Judicial Review (Marbury v. Madison)
State Court System
 Courts of general jurisdiction – local trial courts, state
appellate courts, and state supreme court
 State court systems are very similar to the federal court
system.
 In state appellate courts, cases are reviewed by a panel of
no more than 3 judges.
 State supreme courts often operate in the same manner as
state appellate courts.
 If there is a Constitutional or other federal issue involved, a
further appeal can go to the U.S. Supreme Court.
Specialized State Courts
 Associate Circuit Courts – lower level courts that hear minor criminal
cases, state traffic offenses, and lawsuits of no more than $25,000
 Municipal Courts – city courts that are usually divided into traffic and
criminal divisions dealing with less serious violations of state laws
within city limits
 Small Claims Courts – handles disputes in which small amounts
(usually $2,500 or less) are involved
 Juvenile Courts – special courts set up to hear cases involving those
between the age of 13 and 18; most juvenile cases do not become public
knowledge and focus on rehabilitation, not punishment
 Probate Courts – courts that administer wills and estates
 Although most cases in these specialized courts are not on record, the
decisions can be appealed and sent to a circuit court for a trial on the
record.
Steps in a Trial
 1) Jury Selection
 2) Opening Statements
 3) Presentation of Evidence & Testimony of Witnesses
 4) Closing Arguments
 5) Presentation of Jury Instructions
 6) Deliberations
 7) Verdict
Jury Selection
 Jurors are selected for a courtroom from the pool of
available jurors.
 The judge and attorneys question the potential jurors
to determine if any juror has a personal interest in the
case, or a prejudice or bias that may influence them as
a juror.
 The attorneys may challenge some jurors and ask the
court to excuse them from the trial.
 12 is the most common amount of jurors hearing a
case.
Opening Statements
 Each side (prosecution and defense) may outline the
proof to be presented to the jury during the trial.
 Opening statements are not evidence, only
expectations of what each side expects the evidence to
prove.
Presentation of Evidence & Testimony of Witnesses
 The plaintiff's case is presented first. As each witness testifies, the side that called the
witness asks questions in direct examination.
 Then the side that did not call the witness has an opportunity to ask questions in cross
examination.
 Physical evidence, such as documents, weapons or photographs are admitted into
evidence and numbered for identification.
 During the trial, if one attorney objects to a question, they present their objection to the
judge. These are questions of legal technicality and may be argued out of the hearing.
 The judge will advise the jury of any information needed to make a decision, or instruct
them to disregard what should not be considered.
 A ruling by the judge to sustain or overrule an objection does not mean that the judge is
taking sides. Law is being applied which permits or does not permit the question to be
asked or the answer to the question.
 When each side has presented all their evidence, they "rest" their case.
Closing Arguments
 The attorneys summarize the evidence and try to
persuade the jury to find in favor of their client.
 The plaintiff has the burden of proof and therefore
has the opportunity to open and close the
arguments.
 Burden of Proof – the prosecution must prove the
guilt of the defendant beyond a reasonable doubt
Presentation of Jury Instructions
 Also called “charging the jury.”
 The judge reads the instructions of law to
the jury, defines the issues the jurors must
decide and informs them of the law that
governs the case.
 Jurors may not decide cases based on the
laws as they would like them to be but must
reach a verdict on the laws as they are.
Deliberation & Verdict
 The jury retires to the deliberation room to consider the case and reach a verdict.
 The jury first elects a foreman who will see that discussions are conducted in a
sensible and orderly fashion, that all issues are fully and fairly discussed, and that
every juror is given a fair chance to participate.
 If the jurors have a question during their deliberation, they may write it down and
have the bailiff deliver it to the judge.
 When a verdict has been reached, the jurors agreeing to the verdict sign the form
and notify the bailiff. The verdict is read by the clerk and the judge dismisses the
jurors.
 Hung Jury - a jury that cannot agree upon a verdict after an extended period of
deliberation and is unable to change its votes due to severe differences of opinion
 The result of a hung jury is often a mistrial. In criminal cases, the jury must come
to a unanimous decision. In civil cases, the jury must come to a majority decision.
 The government may retry any defendant on any count (charge) in which the jury
could not agree.