Chapter 2 The Resolution of Private Disputes State Courts and Their Jurisdiction 52 court systems 1 for each state the federal system and one for DC Court must have jurisdiction if its decision in a case is to be binding to the parties Courts of Limited Jurisdiction Minor criminal cases and civil disputes involving small amounts of money or specialized matters a decided in courts of limited jurisdiction o Ex traffic courts probate courts small claims courts Handle a large of cases Procedures may be informal parties often argue their own cases Courts of limited jurisdiction are not courts of record no transcript of proceedings therefore appeals from their decisions require a new trial a trial de novo in a trial court Trial Courts Different from courts of limited jurisdiction in two ways o They are not governed by the subject matter restrictions or the limits on civil damages or criminal penalties that govern courts of limited jurisdiction Cases involving significant dollar amounts or major criminal penalties usually begin at the trial level o Trial courts are courts of record that keep detailed records of hearings trials and other proceedings These records are important if there is an appeal Fact finding function may be handled by the judge or by a jury Determination of the applicable law is always handled by the judge Appellate Courts State appellate courts generally decide only legal questions Instead of receiving new evidence or otherwise retrying the case appellate courts review the record of the proceedings Although they correct legal errors made by the trial judge they usually accept the court s findings of fact Jurisdiction and Venue Jurisdiction a court s power to hear a case and to issue a decision binding on the parties In order to render a binding decision in a civil case a court must have not only subject matter jurisdiction but also in personam jurisdiction or in rem jurisdiction Even if a court has jurisdiction applicable venue requirements must also be satisfied in order for the case to proceed in that court Subject Matter Jurisdiction A court s power to decided the type of dispute involved in the case o Ex criminal courts cannot hear civil matters In Personam Jurisdiction In personam jurisdiction based on the residence location or activities of the defendant A state court has in personam jurisdiction over defendants who o Are citizens or residents of the state o Who are within the state s borders when process is served on them o Who consent to the court s authority Also most states have enacted long arm statues that give their courts in personam jurisdiction o Under these statutes nonresident individuals and businesses become subject to the jurisdiction of the state s courts by Doing business within the state Contracting to supply goods or services within the state Committing a tort a civil wrong within the state In Rem Jurisdiction Based on the presence of property within the state Empowers the state courts to determine rights in that property even if the persons whose rights are affected are outside the state s in personam jurisdiction Venue Venue questions arise only after jurisdiction is established or assumed In general a court has venue if it is a territorially fair and convenient forum in which to hear the case Role of Forum Selection Clauses Forum selection clause clause that recites that disputes between the parties regarding matters connected with the contract must be litigated in courts of a particular state Depending on wording a forum selection clause may have the effect of addressing both jurisdiction and venue issues Federal Courts and Their Jurisdiction In the fed system lawsuits usually begin in the federal district courts Fed district courts determine both facts and law fact finding may be entrusted to either judge or jury applicable law is the judge s responsibility Each state is designated a separate district for purposes of the federal court system each district has at least one district court each district court has at least one judge District Court Jurisdiction o Diversity jurisdiction Various bases of federal district court civil jurisdiction 2 more important ones It may help protect out of state defendants from potentially biased state courts Diversity jurisdiction exists when o Federal question jurisdiction 1 The case is between citizens of different states 2 the amount in controversy exceeds 75 000 Exists when the case arises under the Constitution laws or treaties of the United States Federal Law Diversity jurisdiction and federal question jurisdiction are SUBJECT MATTER JURISDICTION case Concurrent Jurisdiction and Removal Concurrent jurisdiction both state and federal courts have jurisdiction over the When concurrent jurisdiction exists and the plaintiff opts for a state court the defendant has the option to remove the case to an appropriate federal district court Specialized Federal Courts Federal court system also includes certain specialized federal courts Court of Federal Claims hears claims against the US Court of International Trade concerned with tariff customs import and other trade matters Bankruptcy Courts operate as adjuncts of the district courts Tax Court reviews certain IRS determinations Federal Courts of Appeals Do no engage in fact finding Review only legal conclusions reached by lower federal courts There are 13 circuit courts of appeals 11 numbered circuits covering several states a DC court and a separate federal circuit The US Supreme Court Highest court mainly an appellate court Considers only questions of the law when it decides appeals from the federal courts of appeals and the highest state courts Supreme Court has certiorari jurisdiction the court has discretion whether to hear the appeal Nearly all appeals from fed courts of appeals are within certiorari jurisdiction appeals from the highest state courts are within certiorari jurisdiction when o The validity of any treaty or federal statute has been questioned o Any state statute is challenged as repugnant to federal law o Any title right privilege or immunity is claimed under federal law Rarely the US Supreme Court has original jurisdiction which means that it acts as a trial court Supreme Court has original and exclusive jurisdiction over all controversies between 2 or more states Has original but NOT exclusive jurisdiction over cases involving foreign ambassadors ministers and like parties controversies b t the US and a state and cases in which a state
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