CHAPTER 3: CIVIL DISPUTE RESOLUTION
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TOPICS COVERED IN CHAPTER 3:
CIVIL DISPUTE RESOLUTION
 The Court System
A. The Federal Courts
B. State Courts
 Jurisdiction
A. Subject Matter Jurisdiction
B. Jurisdiction over the Parties
 Civil Dispute Resolution
A. Civil Procedure
B. Alternative Dispute Resolution
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2
THE COURT SYSTEM
 Federal Courts.
• District Courts – trial courts of general
jurisdiction that can hear and decide
most legal controversies.
• Courts of Appeals – hear appeals from
district courts and review orders of
certain administrative agencies.
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THE COURT SYSTEM
 Federal Courts.
• The Supreme Court – nation's highest
court, whose principal function is to
review decisions of the Federal Courts
of Appeals and the highest State courts.
• Special Courts – have jurisdiction over
cases in a particular area of Federal law.
• Includes the U.S. Court of Federal Claims, the U.S. Tax
Court, the U.S. Bankruptcy Courts, and the U.S. Court of
Appeals for the Federal Circuit.
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FEDERAL COURT SYSTEM
U.S. Supreme Court
U.S. Court of Appeals
for the Federal Circuit
U.S. Claims Court
Patent and
Trademark Office
Court of
International Trade
Highest State
Courts
U.S. Courts of Appeals
U.S. District Courts
Tax Court
Bankruptcy Court
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Many
Administrative
Agencies
U.S. CIRCUIT COURTS
OF APPEAL
Puerto Rico is
part of Circuit 1
2
8

9
10

7
6
3
Virgin Islands
are part of
Circuit 3
4
11
Northern Marianna Islands are part of
Circuit 9 (along with Alaska and Hawaii.)
1
5
D.C. Circuit
Washington, D.C.
Federal Circuit
Washington, D.C.
Source: Administrative Office of the United
States Courts, January 1983
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THE COURT SYSTEM
 State Courts.
• Inferior Trial Courts – hear minor
criminal cases, such as traffic offenses,
and civil cases involving small amounts of
money; conduct preliminary hearings in
more serious criminal cases.
• Trial Courts – have general jurisdiction
over civil and criminal cases. 
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THE COURT SYSTEM
 State Courts.
• Appellate Courts – include one or two
levels; the highest court's decisions are
final except in those cases reviewed by
the U.S. Supreme Court.
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STATE COURT SYSTEM
State Supreme
Court
Intermediate
Appellate Court
Trial
Courts
Inferior
Trail Courts
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Special
Courts
JURISDICTION
 Power or authority of a court to hear
and decide a given case.
 Subject Matter Jurisdiction –
authority of a court to judge a
controversy of a particular kind
of case. 
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JURISDICTION
 Subject Matter Jurisdiction.
• Federal Jurisdiction: limited jurisdiction.
• Exclusive Federal Jurisdiction.
• Concurrent Federal Jurisdiction.
–Diversity of Citizenship:
»Plaintiffs and defendants from different
states,
»Foreign country brings suit against US
citizens.
»Suit is between US citizen and citizens of a
foreign country.
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JURISDICTION
 WHITE V. FCI USA, INC. (2003).
 Subject Matter Jurisdiction.
• Exclusive State Jurisdiction: jurisdiction
over all other (non federal) matters.
• Conflict of Laws. 
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FEDERAL AND STATE
JURISDICTION
Exclusive
State
Jurisdiction
All other
matters
Exclusive Federal
Jurisdiction
1.
2.
3.
4.
5.
6.
7.
8.
Federal crimes
Bankruptcy
Patents
Copyright and trademarks
Admiralty
Antitrust
Suits against the United States
Specified federal statutes
Concurrent Jurisdiction
1. Federal questions
2. Diversity of citizenship
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STARE DECISIS IN THE DUAL
COURT SYSTEM
U.S. Supreme Court
U.S. Circuit
Court of Appeals
State Supreme Court
State Intermediate
Appellate Court
U.S. District Court
in that Circuit
State Trial Court
Binding on questions of federal law
Binding on questions of state law
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JURISDICTION
 WORLD-WIDE VOLKSWAGEN CORP. V.
WOODSON (1980). Describe the
factors courts use to determine
whether ‘sufficient minimum
contacts’ exist.
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JURISDICTION
 In Personam Jurisdiction –
jurisdiction based upon claims
against a person, in contrast to
jurisdiction over the person's
property.
• Most states have adopted long-arm
statutes.
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JURISDICTION OVER THE
PARTIES
 In Rem Jurisdiction – jurisdiction
based on claims against property.
 Attachment Jurisdiction – jurisdiction
over a defendant's property to obtain
payment of a claim not related to the
property.
 Venue: geographic area where lawsuit
should be brought.
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JURISDICTION
Type of Jurisdiction
In rem
Parties --
Subject Matter--
Courts must have
authority over the
parties to the
case. This may
be:
some courts have all
authority over certain
types of cases.
Jurisdiction can be:
Personal
Quasi in
rem
State
Federal
Concurrent
Defendant
resident
Long-arm
statute
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CIVIL DISPUTE RESOLUTION
 The Pleadings – a series of statements
that give notice and establish the issues
of fact and law presented and disputed.
• Complaint – initial pleading by the
plaintiff stating his case.
• Summons – notice given to inform a
person of a lawsuit against her. 
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CIVIL DISPUTE RESOLUTION
 The Pleadings.
• Responses to Complaint.
• If defendant does not answer, court can enter a
default judgment.
• Defendant can file a demurrer.
• Defendant can answer, and deny all claims, and
assert affirmative defenses (which defense must
prove at trial), and file a counterclaim.
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CIVIL DISPUTE RESOLUTION
 Pretrial Procedure.
• Judgment on Pleadings – a final ruling
in favor of one party by the judge based
on the pleadings.
• Discovery – right of each party to
obtain evidence from the other party.

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CIVIL DISPUTE RESOLUTION
 Pretrial Procedure.
• Pretrial Conference – a conference
between the judge and the attorneys to
simplify the issues in dispute and to
attempt to settle the dispute without
trial. 
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CIVIL DISPUTE RESOLUTION
 Pretrial Procedure.
• Summary Judgment – final ruling by the
judge in favor of one party based on
the evidence disclosed by discovery.
• PARKER V. TWENTIETH CENTURY-FOX FILM
CORP. (1970). 
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CIVIL DISPUTE RESOLUTION
 Trial.
• Jury Selection – (voir dire) each party
has an unlimited number of challenges
for cause and a limited number of
peremptory challenges.
• EDMONSON V. LEESVILLE CONCRETE COMPANY,
INC. (1991).
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CIVIL DISPUTE RESOLUTION
 Trial.
• Jury Selection.
• Offer of Proof: preserve for review on appeal.
• Directed Verdict: final, binding determination.
• Closing Argument: to the jury.
• Jury Instructions.
• Verdict: the jury's decision based on
those facts the jury determines the
evidence proves.
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CIVIL DISPUTE RESOLUTION
 Trial.
• Motions Challenging Verdict – include
motions for a new trial and a motion
for judgment notwithstanding the
verdict.
 Appeal.
• Determines whether the trial court
committed prejudicial error.
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CIVIL DISPUTE RESOLUTION
 Enforcement.
• Plaintiff with an unpaid judgment may
resort to a writ of execution to have the
sheriff seize property of the defendants
and garnishment to collect money
owed.
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STAGES IN CIVIL PROCEDURE
Determine what facts are in
dispute
Pleadings
Discover what evidence there
is to prove the facts in dispute
Pretrial
Determine what facts are
provided by the evidence
Review the lower court’s
actions for prejudicial error
Implement the court’s
judgment
Trial
Complaint, Answer, Reply
Discover, Conference,
Summary Judgment
Jury Selection
Opening Statements
Introduction of Evidence
Closing Arguments
Judgment on Verdict
Appeal
Briefs and Transcript
Oral Argument, Decision
Enforcement
Execution, Garnishment
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CIVIL DISPUTE RESOLUTION
 Arbitration – a nonjudicial
proceeding in which a neutral party
selected by the disputants renders a
binding decision (award).
• Types of Arbitration.
• Consensual Arbitration.
• Compulsory Arbitration. 
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CIVIL DISPUTE RESOLUTION
 Arbitration.
• Procedure.
• International Arbitration.
• Court-Annexed Arbitration.
• RENT-A-CENTER, WEST, INC. V. JACKSON
(2010).
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CIVIL DISPUTE RESOLUTION
 Conciliation.
• Nonbinding process in which a third
party acts as an intermediary between
the disputing parties.
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CIVIL DISPUTE RESOLUTION
 Mediation.
• Nonbinding process in which a third
party acts as an intermediary between
the disputing parties and proposes
solutions for them to consider.
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CIVIL DISPUTE RESOLUTION
 Mini-Trial.
• Nonbinding process in which attorneys
for the disputing parties present evidence
to managers of the disputing parties and
a neutral third party, after which the
managers attempt to negotiate a
settlement in consultation with the third
party.
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CIVIL DISPUTE RESOLUTION
 Summary Jury Trial.
• Mock trial followed by negotiations.
 Negotiation.
• Consensual bargaining process in which
the parties attempt to reach an
agreement resolving their dispute
without the involvement of third
parties.
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ADR COMPARISON
Court Adjudication
Arbitration
Mediation/ Conciliation
Advantages
Binding
Public norms
Precedents
Uniformity
Publicly funded
Compels participation
Binding
Parties control process
Privacy
Special expertise
Speedy resolution
Preserves relations
Parties control process
Privacy
Flexible
Disadvantages
Expensive
Time-consuming
Long delays
Limited remedies
Lacks special expertise
No compromise
Disrupts relationships
Publicity
No public norms
No precedent
No uniformity
Not binding
Lacks finality
No compelled participation
No precedent
No uniformity
*Source: Adapted from Table 4 of Report of the Ad Hoc Panel on Dispute Resolution and
Public Policy , prepared by the National Institute for Dispute Resolution.
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