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.
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The State Court Systems
LimitedJurisdiction Trial
Courts
Supreme
Court
GeneralJurisdiction Trial
Courts
Intermediate
Appellate
Courts
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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
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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
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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
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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.
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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
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The Federal Court System
Special Federal
Courts
U.S. Supreme
Court
U.S. District
Courts
U.S. Courts of
Appeals
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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Personal Jurisdiction of Courts
Standing to Sue
Jurisdiction
Venue
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Standing to Sue
• Plaintiff must have a stake
in the outcome of case
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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
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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
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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
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