Twomey  Jennings
Anderson’s Business Law and the Legal Environment, Comprehensive 20e
Anderson’s Business Law and the Legal Environment, Standard 20e
Business Law: Principles for Today’s Commercial Environment 2e
Chapter 2
The Court System and
Dispute Resolution
Copyright © 2008 by West Legal Studies in Business
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The Court System
• Courts hear disputes according to their
jurisdiction.
– Subject matter jurisdiction covers types
of proceedings a court may hear.
– Limited (special) jurisdiction courts deal
with cases restricted to certain subject
matter.
– Appellate jurisdiction reviews the work
of a lower court. Either affirm or reverse. 2
Copyright © 2008 by West Legal Studies in Business
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Court Systems
• The courts in the United States are
organized into the state and federal court
systems, each (generally) with three levels:
– trial courts.
– appellate courts.
– a supreme court.
• Supreme and appellate courts review the
decisions of trial courts and either affirm,
reverse or remand the lower court’s
decision.
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The Federal Court System
Supreme Court of the United States
(Highest appeals court; review from lower appeals courts is
usually at the discretion of the Supreme Court)
U.S. Courts of Appeals
Circuit Courts –
Jurisdiction by geographic
area.
Court of Appeals for the
Federal Circuit –
Nationwide jurisdiction by
subject matter
Review
Federal
District
Courts
Tax
Court
Indian
Tribal
Court
Specialty Courts
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Bankruptcy
Court
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The State Court System
Possible
Appeal to the
United States
Supreme Court
State Supreme
Court
State Court of Appeals
General Trial Court
(County, Circuit & Superior Court)
Specialty Courts
Juvenile
Probate
City or
Municipal
(Traffic)
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Domestic
Relations
Small
Claims
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Court Procedure
• Within the courts of original jurisdiction,
there are rules for procedures in all matters.
• A civil case begins with the filing of a
complaint by a plaintiff, which is served
upon the defendant and then answered.
• Discovery is the pretrial process used by the
parties to find out the evidence in the case
(depositions, interrogatories, and document
requests).
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Court Procedure
• The case is managed by a judge and may
be heard by a jury.
– Through the process of voir dire, the parties
may challenge the selection of certain
potential jurors.
• The trial involves opening statements, the
presentation of evidence, and the direct
and cross-examination of witnesses.
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Court Procedure
• Once a judgment is entered, the party
who has won can collect the judgment
through garnishment and a writ of
execution.
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Conflicts of Law
• Conflict of laws:
– Law of state where complaint is filed governs
procedural issues and rules of evidence.
– For contract formation, courts apply law of
state in which contract was formed.
– For contract performance, courts apply law of
state in which contract is to be performed.
– International: most significant contacts with
transaction.
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Initial Steps in a Lawsuit
1. Complaint by plaintiff
2. Service of process on defendant
Deny
Counterclaim
Admit
3. Defendant’s answer
4. Discovery
Depositions
Interrogatories
Request for Production
5. Motion for Summary Judgment
(if no factual issues)
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The Trial
Trial
a. Jury selection
voir dire.
challenge for cause.
peremptory challenge.
b. Opening statements.
c. Plaintiff’s case.
d. Motion for directed verdict.
e. Defendant’s case.
f. Summation.
g. Jury instructions.
h. Jury verdict or mistrial (deadlocked).
i. Motion for new trial or judgment.
j. Recovery - fees, execution, garnishment.
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Direct.
Cross.
Redirect.
Recross.
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Alternative Dispute Resolution
ADR
Reference
to Referee
Arbitration
Minitrial
Association
Tribunal
Use of
Ombudsman
Summary
Jury Trial
Mediation
Rent-aJudge
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Alternative Dispute Resolution
• Arbitration – disputes are settled by
arbitrators who take evidence and
make a binding or non-binding
decision.
– Uniform Arbitration Act.
– Federal Arbitration Act.
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Alternative Dispute Resolution
• Mediation – disputes are settled by
the parties who use a third person to
facilitate their settlement.
• Summary Jury Trial.
• Mini-trial.
• Ombudsman.
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