CHAPTER 2 – THE AMERICAN COURT SYSTEM
A.
Chapter Introduction
Chapter 2 discusses the federal and state court systems, the jurisdiction of courts to hear
and decide cases, and the litigation process.
After completion of this chapter, students should be able to:
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B.
Describe the state court system.
Describe the federal court system.
Apply a cost-benefit analysis for bringing and defending a lawsuit.
Explain how a justice is chosen for the U.S. Supreme Court.
Explain subject-matter jurisdiction and venue of federal and state courts.
Describe in personam jurisdiction of courts.
Explain how personal jurisdiction applies to website operators.
Compare the Japanese and American legal systems.
Describe long-arm statutes.
Describe venue.
Instructional Ideas
1. Discuss the Japanese legal system and if ask the students whether they think
ours is better than theirs. Get the students’ opinions on whether America
should still have contingency fees.
2. Explain the process of choosing a Supreme Court justice, focusing on the
Bork nomination that failed and the Thomas nomination that narrowly
succeeded. Get input on the role that partisan politics plays in the Senate’s
power of confirmation.
3. Compare and contrast the federal and state court systems, explaining the
similarities of their functions (trial and appellate) and the differences in their
jurisdiction.
4. Explain the difference between majority opinions, concurring opinions, and
dissenting opinions.
5. Explain the difference between subject matter jurisdiction and in personam
jurisdiction, as well as the difference between jurisdiction and venue.
6. Discuss Bush v. Gore and ask the class their opinions on the Supreme Court’s
role in the election.
C.
Video Recommendation(s)
20/20’s John Stossel did a television show, “The Trouble with Lawyers,” that aired in the
mid-1990s and is an excellent foray into some of the problems associated with the
American legal system. Although it is essentially one-sided, it is not an unfair piece, and
should stimulate lots of discussion.
A movie from the 1970s, The Onion Field, is a thoroughly depressing, but interesting,
account of two murderous thugs as they wind their way through the California criminal
courts, fighting a charge of murdering a police officer. Using every delay and red herring
tactic possible, they thwart the justice system. This movie is almost the flip side to
Gideon’s Trumpet, suggested in the first chapter.
D.
Chapter Outline
I.
State Court Systems
A. Limited-Jurisdiction Trial Court: State courts that hear matters of a
specialized or limited nature (e.g., misdemeanor criminal matters,
traffic tickets, civil matters under a certain dollar amount). Many
states have created small claims courts that hear small-dollar-amount
civil cases (e.g., under $3,000) where the parties cannot be represented
by lawyers.
B. General-Jurisdiction Trial Court: State courts that hear cases of a
general nature that are not within the jurisdiction of limitedjurisdiction trial courts.
C. Intermediate Appellate Court: State courts that hear appeals from
state trial courts. The appellate court reviews the trial court record in
making its decision; no new evidence is introduced at this level.
D. Highest State Court: Each state has a highest court in its court
system. This court hears appeals from appellate courts and, where
appropriate, trial courts. This court reviews the record in making its
decision; no new evidence is introduced at this level. Most states call
this court the supreme court.
II.
Federal Court System
A. Federal Court System:
1. Special federal courts. Federal courts that have specialized or
limited jurisdiction. They include:
a. U.S. tax court. Hears cases involving federal tax laws.
b. U.S. claims court. Hears cases brought against the United
States
c. U.S. Court of International Trade. Hears cases involving
tariffs and international commercial disputes.
d. U.S. bankruptcy courts. Hear cases involving federal
bankruptcy law.
2. U.S. district courts. Federal trial courts of general jurisdiction
that hear cases not within the jurisdiction of specialized courts.
There is at least one U.S. district court per state; more populated
states have several district courts. The area served by one of these
courts is called a district.
3. U.S. courts of appeals. Intermediate federal appellate courts that
hear appeals from district courts located in their circuit and, in
certain instances, from special federal courts and federal
administrative agencies. There are 12 geographical circuits in this
country. Eleven serve areas that are comprised of several states,
while another is located in Washington, DC. A thirteenth circuit
court—the Court of Appeals for the Federal Circuit—is located in
Washington, DC, and reviews patent, trademark, and international
trade cases.
4. U.S. Supreme Court. Highest court of the federal court system.
It hears appeals from the circuit courts and, in some instances,
from special courts and U.S. district courts. The Court, which is
located in Washington, DC, is composed of nine justices, one of
whom is named chief justice.
B. Decisions by U.S. Supreme Court: Petition of certiorari and writ of
certiorari. To have a case heard by the U.S. Supreme Court, a
petitioner must file a petition for certiorari with the Court. If the Court
decides to hear the case, it will issue a writ of certiorari.
C. Voting by the U.S. Supreme Court:
1. Unanimous Decision. All of the justices agree as to the outcome
and reasoning used to decide the case; the decision becomes
precedent.
2. Majority Decision. A majority of the justices agrees as to the
outcome and reasoning used to decide the case; the decision
becomes precedent.
3. Plurality Decision. A majority of the justices agrees to the
outcome but not the reasoning; the decision is not precedent.
4. Tie Decision. If there is a tie vote, the lower court’s decision
stands; the decision is not precedent.
5. Concurring Opinion. A justice who agrees as to the outcome of
the case but not the reasoning used by other justices may write a
concurring opinion setting forth his or her reasoning.
6. Dissenting Opinion. A justice who disagrees with the outcome of
a case may write a dissenting opinion setting forth his or her
reasoning for dissenting.
III.
Jurisdiction of Federal and State Courts
A. Jurisdiction of Federal and State Courts: Federal courts may hear
the following cases:
1. Federal Question. Cases arising under the U.S. Constitution,
treaties, and federal statues and regulations; there is no dollaramount limit.
2. Diversity of Citizenship. Cases between (i) citizens of different
states and (ii) citizens of a state and citizen or subject of a foreign
country; federal courts must apply the appropriate state law in such
cases. The controversy must exceed $75,000 for the federal court
to hear the case.
B. Jurisdiction of State Courts: State courts hear some cases that may
be heard by federal courts.
1. Exclusive Jurisdiction. Federal courts have exclusive jurisdiction
to hear cases involving federal crimes, antitrust, and bankruptcy,
patent and copyright cases, suits against the United States, and
most admiralty cases. State courts may not hear these matters.
2. Concurrent Jurisdiction. State courts have concurrent
jurisdiction to hear cases involving diversity of citizenship cases
and federal question cases over which the federal courts do not
have exclusive jurisdiction. The defendant may have the case
removed to federal courts.
C. Standing to Sue: To bring a lawsuit, the plaintiff must have some
stake in the outcome of the lawsuit.
D. Subject-Matter Jurisdiction: The court must have jurisdiction over
the subject matter of the lawsuit; each court has limited jurisdiction to
hear only certain types of cases.
E. In Personam Jurisdiction (or Personal Jurisdiction): The court
must have jurisdiction over the parties to a lawsuit. The plaintiff
submits to the jurisdiction of the court by filing the lawsuit there.
Personal jurisdiction is obtained over the defendant by serving that
person service of process.
F. In Rem Jurisdiction: A court may have jurisdiction to hear and
decide a case because it has jurisdiction over the property at issue in
the lawsuit (e.g., real property located in the state).
G. Quasi In Rem Jurisdiction (or Attachment Jurisdiction): A
plaintiff who obtains a judgment against a defendant in one state may
utilize the court system of another state to attach property of the
defendant’s located in the second state.
H. Long-Arm Statutes: Permit a state to obtain personal jurisdiction
over an out-of-state defendant as long as the defendant had the
requisite minimum contact with the state. The out-of-state defendant
may be served process outside the state in which the lawsuit has been
brought.
E.
I.
Venue: A case must be heard by the court that has jurisdiction nearest
to where the incident at issue occurred or where the parties reside. A
change of venue will be granted if prejudice would occur because of
pretrial publicity or another reason.
J.
Forum-Selection Clause: A clause in a contract that designates the
court that will hear any dispute that arises out of the contract.
Critical Legal Thinking Questions
1.
Describe the courts of a typical state court system? What courts make
up your state’s court system?
Each state and the District of Columbia have separate court systems. Most
state court systems include the following: limited-jurisdiction trial courts;
general-jurisdiction trial courts; intermediate appellate courts; and a
supreme court (or highest state court). Limited-jurisdiction trial courts
hear matters of a specialized or limited nature. Examples of those courts
are traffic courts and small claims courts. General-jurisdiction trial courts
are often called courts of record because the testimony and evidence at
trial are recorded and stored for future reference. These courts hear
evidence and testimony, and the decisions handed down by these courts
are appealable. Intermediate appellate courts hear appeals from trial
courts. These courts review the trial court record to determine any errors
at trial that would require reversal or modification of the trial court’s
decision, but they do so without new evidence or testimony. A state’s
supreme court is the highest court, and its function is to hear appeals from
intermediate state courts and certain trial courts. Decisions of state
supreme courts are final, unless a question of law is involved that is
appealable to the U.S. Supreme Court.
2.
Describe the following special federal courts: (1) U.S. tax court, (2)
U.S. claims court, (3) U.S. Court of International Trade, and (4) U.S.
bankruptcy court.
The U.S. tax court hears cases involving federal tax laws. The U.S. claims
court hears cases brought against the United States. The U.S. Court of
International Trade hears cases involving tariffs and international
commercial disputes. The U.S. bankruptcy courts hear cases involving
federal bankruptcy laws.
3.
Describe U.S. district courts. What types of cases do they hear?
U.S. district courts are the federal court system’s trial courts of general
jurisdiction. The area that each court serves is referred to as a district.
There are presently 96 federal jurisdictions. District courts hear both
criminal and civil matters.
4.
Describe U.S. courts of appeal. How many are there? Describe the
function of the Court of Appeals for the Federal Circuit.
There are 13 circuits within the federal court system, with each circuit
having its own circuit court of appeals. As appellate courts, these circuit
courts hear appeals from the district courts located in their circuit, as well
as from certain special courts and federal administrative agencies. The
Court of Appeals for the Federal Circuit, located in Washington, DC, has
special appellate jurisdiction to review the decisions of the claims court,
the Patent and Trademark Office, and the Court of International Trade.
5.
Describe the U.S. Supreme Court. What are the functions of the chief
justice? What is the function of the associate justices?
The U.S. Supreme Court is the highest court in the land and is located in
Washington, DC. Comprised of nine justices, the Court hears appeals
from federal circuit courts of appeal and, under certain circumstances,
from federal district courts, special federal courts, and the highest state
courts. Their decisions are final. The justices are nominated by the
President and confirmed by the Senate. The chief justice is the leader of
the court and is responsible for the administration of the Supreme Court.
The associate justices, along with the chief justice, determine what cases
the Court will take, decide and vote on those cases, and write a variety of
types of opinions connected to those decisions.
6.
Describe the process of choosing a Supreme Court justice. Do you
think this process is political or not? Explain.
Supreme Court justices are nominated by the President, who likely
chooses those judges whose legal (and perhaps political) philosophy is
most like the President’s. Then, the Senate has the final say by
confirming—or not confirming—the nominees. The process is absolutely
political; at least, as it has become so since the late 1980s. The
nomination of Clarence Thomas, for instance, was more rancorous than
the typical senatorial election.
7.
Define the following types of decisions of the U.S. Supreme Court: (1)
unanimous decision, (2) majority decision, (3) plurality decision, and
(4) tie decision.
A unanimous decision is one in which all of the justices voting agree as to
the outcome and reasoning used to decide the case. A majority decision is
one in which a majority of the justices voting agree to the outcome and
reasoning used to decide the case. A plurality decision is one in which a
majority of the justices agree to the outcome of the case, but not to the
reasoning for reaching the outcome. A tie occurs when fewer than all of
the nine justices sit for a case and the resulting decision has the same
number of justices on both sides, in which case the lower court decision is
affirmed.
F.
8.
Federal courts have limited jurisdiction to hear cases. Describe the
following types of jurisdiction: (1) federal question jurisdiction, and
(2) diversity of citizenship jurisdiction.
Federal question jurisdiction involves cases that arise under the U.S.
Constitution, treaties, and federal statutes and regulations. There is no
dollar-amount limit on federal question cases that can be brought in
federal court. Diversity of citizenship jurisdiction involves federal cases
between: 1) citizens of different states, 2) a citizen of a state and a citizen
or subject of a foreign country, 3) or a citizen of a state and a foreign
country where the foreign country is the plaintiff. The dollar amount in a
diversity case must exceed $75,000.
9.
Describe the difference between subject matter jurisdiction and in
personam jurisdiction. What is the purpose of a long-arm statute?
Subject matter jurisdiction is a court’s authority or power to hear certain
types of cases. In personam jurisdiction is the court’s authority or power
over the defendant in the lawsuit. A court with personal jurisdiction over
a case can’t hear it if it is outside the scope of the court’s subject matter
jurisdiction, and vice versa. A long-arm statute allows a plaintiff to obtain
personal jurisdiction over a nonresident defendant (and who couldn’t be
personally served with the summons) because of the requisite “minimum
contact” the defendant made in the jurisdiction where the suit is filed.
10.
Define venue. Give an example of when a change of venue would be
granted.
Venue is the location—the best location—for the lawsuit. Venue requires
lawsuits to be heard by the court with the jurisdiction nearest the location
in which the incident occurred or where the parties reside. Venue can be
changed when circumstances warrant. For instance, pretrial publicity may
prejudice jurors located in the proper venue, such as occurred in the O.J.
Simpson criminal case.
Cases for Discussion
Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991), concerns the enforceability of
a forum selection clause buried in a contract of the Carnival Cruise Line. The Shutes,
from Washington state, were on a Carnival cruise ship in Mexico when Mrs. Shute was
injured on board. Upon returning home, they sued Carnival in Washington, and Carnival
moved for summary judgment, arguing that the suit could only be brought in Florida,
based upon the forum selection clause in the five-page contract that came with the tickets.
The U.S. Supreme Court held the forum selection clause was fair and reasonable and
therefore enforceable against Mrs. Shute. The Court reasoned that such a clause was
enforceable despite the fact that it was not specifically negotiated for, in light of the fact
that such a clause promotes uniformity and keeps ticket prices down for Carnival
customers.
QUESTIONS
1.
Should forum-selection clauses be enforced? Why or why not?
The Court found that such clauses—where reasonable—should be enforced
because they promote uniformity. In this instance, the Court concluded that
Carnival had a valid interest in its forum selection clause in light of its broad
customer base. Whether all forum-selection clauses should be enforced is an
opinion question.
2.
Did Carnival Cruise Lines act ethically by placing the forum-selection clause in
their tickets?
Their shareholders, at least, should conclude that Carnival acted ethically, since
forum selection keeps Carnival’s costs down. Others may conclude that it was
unethical for Carnival to bury the clause within the lengthy contract, or that it is
unethical to do what Carnival did, since it makes its non-Floridian customers’
lives more difficult upon discovering the clause.
3.
Do forum-selection clauses serve any legitimate business purposes? Explain.
Such clauses allow the creators to know where their suits are going to be resolved,
which helps keep costs under control, since the company’s lawyers do not have to
travel all over the country defending lawsuits. Such clauses also discourage some
suits, which helps the bottom line even more.
2.1
Nutrilab, Inc. v. Schweiker, 713 F.2d 335 (7th Cir. 1983), concerns the FDA’s desire to
classify Nutrilab’s Starch Blocker as a drug, desiring to remove the product from the
market until the FDA approved the use of Starch Blocker. Nutrilab disputed the FDA’s
authority to intervene.
ISSUE: Do the federal courts have jurisdiction to hear this case?
Yes, federal courts have jurisdiction to hear this case since it involved an invocation of
federal law. The court concluded that Starch Blocker qualified as a drug because it was
“intended to affect the structure or any function of the body of man or other animals.”
Since blockers are intended to affect digestion in the people who took them, they
constituted drugs.
2.2
Allison v. ITE Imperial Corp., 729 F.Supp. 45 (S.D. Miss. 1990), concerns a Mississippi
resident who sued in a Mississippi state court over an injury he suffered working in
Tennessee on a circuit breaker manufactured by the defendant.
ISSUE: Can this suit be removed to federal court?
Yes, it does involve federal jurisdiction based upon diversity of citizenship.
2.3
Brooks v. Magna Verde Corp., 619 P.2d 1271 (Okla. App. 1980), concerns a boxing
promotion corporation in California who was sued, by use of a long-arm statute, in
Oklahoma because its company’s client punched a sports writer in Oklahoma. The
corporation’s only contacts with Oklahoma were that a few of its employees went there to
plan the boxing match.
ISSUE: Does Oklahoma have jurisdiction over Magna Verde Corporation?
Yes, the court concluded that Magna Verde did business in Oklahoma, which was the
state out of which the lawsuit grew.
2.4
Harris v. Time, Inc., 191 C.A.3d 449 (Cal.App. 1987), concerned a lawyer-father who
brought a suit on behalf of his three-year-old son against Time, Inc. because it had mailed
an advertisement to the boy that, on its envelope, purported to promise a free watch,
when in fact the watch was available only for subscribing to Fortune magazine. The
father sued for $15 million in punitive damages, but the trial court dismissed the suit.
ISSUE: Should Joshua be permitted to maintain his lawsuit against Time, Inc.? Did
Time act ethically? Should Joshua’s father have sued for $15 million?
The court concluded that the lawsuit should have been dismissed because the plaintiff
suffered no damage or loss other than having been enticed by the external wording of a
piece of bulk rate mail. The court held the maxim “the law disregards trifles” applies.
Whether Time acted ethically is a matter of opinion and class discussion, although one
could safely conclude that Joshua’s father should not have sued for $15 million, even
assuming that three-year-old Joshua, the son of a prominent attorney, actually thought he
would win a plastic watch by opening an envelope. A small claims court action—
perhaps. A $15 million suit—not hardly!
G.
Case for Briefing
1.
Case Name
Anheuser-Busch, Incorporated v. Schmoke, Mayor of Baltimore City
63 F.3d 1305 (1995)
U.S. Court of Appeals, Fourth Circuit
2.
Key Facts
A.
Baltimore, after conducting research and holding public hearings, enacted
an ordinance prohibiting the outdoor advertising of alcoholic beverages in
certain locations.
B.
Baltimore enacted this ordinance to protect children from being exposed to
alcoholic advertisements.
C.
The ordinance allowed such advertisements in commercial and industrial
areas, places the city thought were least connected to minors’ activities.
D.
E.
F.
Anheuser-Busch sued in federal court, seeking to prevent the ordinance’s
effect, arguing that the ordinance violated the First Amendment’s free
speech clause.
The U.S. district court upheld the constitutionality of the ordinance.
Anheuser-Busch appealed.
3.
Issue
Is an ordinance that prohibits alcoholic billboard advertising in all city areas but
industrial areas reasonably tailored to materially serve the government’s interest
in promoting temperance of minors?
4.
Holding
Yes. The Court of Appeals held that the ordinance was not an unconstitutional
infringement on the First Amendment.
5.
Court’s Reasoning
A.
The majority of research shows a direct correlation between alcoholic
advertising and underage drinking.
B.
As a matter of law, prohibitions against the advertising of alcoholic
beverages are reasonably related to reducing the sale and consumption of
alcohol by minors.
C.
The city must be given some latitude in its attempt to address such a
serious problem.
D.
The problem of underage drinking is so rampant that nearly 40 percent of
all youth in adult correction facilities reported drinking alcohol before
committing their crime.