Chapter 2: Court Systems and Jurisdiction © 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman There are two major court systems in the U.S.: 1. The federal court system 2. The court systems of the 50 states and the District of Columbia – Each of these systems has jurisdiction to hear different types of lawsuits. 2-2 The State Court Systems LimitedJurisdiction Trial Courts Supreme Court GeneralJurisdiction Trial Courts Intermediate Appellate Courts 2-3 The State Court Systems (continued) Limited – Jurisdiction Trial Courts • • • • Hear matters of a specialized or limited nature Traffic courts Juvenile courts Justice-of-the-peace courts Probate courts • Family law courts • Small claims courts • Courts that hear misdemeanor criminal law cases and civil lawsuits under a certain dollar amount 2-4 The State Court Systems (continued) • General – Jurisdiction Trial Courts – Hear cases of a general nature that are not within the jurisdiction of limitedjurisdiction courts – Testimony and evidence at trial are recorded and stored for future reference 2-5 The State Court Systems (continued) • Intermediate Appellate Courts – A court that hears appeals from trial courts – Reviews the trial court record to determine if there have been any errors at trial that would require reversal or modification of the decision 2-6 The State Court Systems (continued) • Highest State Court – The highest court in a state court system – Hears appeals from intermediate state courts and certain trial courts – No new evidence or testimony is heard – Decisions of state supreme courts are final, unless a question of law is involved that is appealable to the U.S. Supreme Court. 2-7 A Typical State Court System Appeal to U.S. Supreme Court State Supreme Court State Appeals Courts State Trial Courts of General Jurisdiction Civil Division Criminal Division Small Claims Courts Probate Division Municipal Courts Domestic Relations Division Juvenile Division Justice of the Peace Courts 2-8 The Federal Court System Special Federal Courts U.S. Supreme Court U.S. District Courts U.S. Courts of Appeals 2-9 The Federal Court System (continued) • U.S. Supreme Court – The Supreme Court was created by Article III of the U.S. Constitution – The Supreme Court is the highest court in the land and is located in Washington, D.C. 2 - 10 The Federal Court System (continued) • Special Federal Courts – Federal courts that hear matters of specialized or limited jurisdiction – They include: • U.S. Tax Court • U.S. Claims Court • U.S. Court of International Trade • U.S. Bankruptcy Court 2 - 11 The Federal Court System (continued) • U.S. District Courts – The federal court system’s trial courts of general jurisdiction – They are empowered to: • Impanel juries • Receive evidence • Hear testimony • Decide cases – Most federal cases originate in federal district court 2 - 12 The Federal Court System (continued) • U.S. Courts of Appeals – The federal court system’s intermediate appellate courts – These courts hear appeals from the district courts located in their circuit 2 - 13 The Federal Court System (continued) • U.S. Courts of Appeals (continued) – Review the record of lower courts or administrative agency proceedings – Determine if there has been any error that would warrant reversal or modification of the lower court decision 2 - 14 The Federal Court System (continued) • U.S. Supreme Court – The Supreme Court hears appeals from: • federal circuit courts of appeals • federal district courts, under certain circumstances • special federal courts • the highest state courts. – No new evidence or testimony is heard 2 - 15 The Federal Court System (continued) • U.S. Supreme Court (continued) – The lower court record is reviewed to determine whether there has been an error that warrants a reversal or modification of the decision – The Supreme Court’s decision is final 2 - 16 The Federal Court System (continued) • U.S. Supreme Court (continued) – The Supreme Court can issue the following types of decisions: • Unanimous decision • Majority decision • Plurality decision • Tie decision – Justices may issue a concurring or dissenting opinion 2 - 17 The Federal Court System (continued) • Petition for Certiorai A petition asking the Supreme Court to hear case. • Writ of Certiorai An official notice that the Supreme Court will review a case. 2 - 18 The Federal Court System (continued) U.S. Supreme Court Many Federal Administrative Agencies U.S. Court of Appeals U.S. Court of Appeals (11 Territorial Circuits & D.C. Circuit) for the Federal Circuit U.S. District Courts (96 Districts U.S. U.S. Tax Claims Court Court U.S. Court of International Trade U.S. Patent and Trademark Office U.S. Bankruptcy Courts 2 - 19 Jurisdiction of State Courts • State courts hear any cases that federal courts do not have jurisdiction to hear – – – – – Matters involving state law Real estate Business law Sales and lease agreements Negotiable instruments 2 - 20 Jurisdiction of Federal and State Courts Exclusive Federal Jurisdiction 1. Admiralty 2. Antitrust 3. Bankruptcy 4. Copyright 5. Federal Crimes 6. Patents 7. Suits against the U.S. 8. Other specified federal statutes Concurrent Jurisdiction 1. Federal questions 2. Diversity of citizenship cases Exclusive State Jurisdiction Matters not subject to federal jurisdiction 2 - 21 Personal Jurisdiction of Courts Standing to Sue Jurisdiction Venue 2 - 22 Standing to Sue • Plaintiff must have a stake in the outcome of case 2 - 23 In Personam Jurisdiction • Personal jurisdiction is obtained by: – Plaintiff • by virtue of filing the suit – Defendant • by serving summons within the state • by mailing summons • by publication • Party disputing jurisdiction may make a special appearance 2 - 24 In Rem and Quasi In Rem Jurisdiction • In rem: – Court has jurisdiction over the property of the lawsuit – Within the state borders • Quasi in rem: – Attachment jurisdiction • Attach property located in another state 2 - 25 Long-Arm Statute • State courts obtain jurisdiction over persons or businesses located in another state – Allows summons to be served in other states – Must have minimum contact with state – Must uphold notions of fair play and substantial justice 2 - 26