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Chapter 3 Courts and Alternative Dispute Resolution The Judiciary s Role in American Government The essential role of the judiciary the courts in the American governmental system to interpret and apply the law Judicial Review The process by which a court decides on the constitutionality of legislative enactments and actions of the executive branch Jurisdiction The authority of a court to hear and decide a specific case Juris means law diction means speak Long Arm Statute A state statute that permits a state to exercise jurisdiction over nonresident defendants Jurisdiction over Persons or Property A court can exercise personal jurisdiction over any person or business that resides in a certain geographic area A court can also exercise jurisdiction over property that is located within its boundaries Corporate Contacts Courts use the same principles to determine whether it is fair to exercise jurisdiction over a corporation Corporations are subject to personal jurisdiction in the state in which it is incorporated The minimum contacts requirement is usually met if the corporations advertises or sells its products within the state or places its goods into the stream of commerce with the intent that the goods be sold in the state Jurisdiction over Subject Matter a limitation on the types of cases a court can hear In both the federal and the state court systems there are courts of general unlimited jurisdiction and courts of limited jurisdiction Probate Court A state court of limited jurisdiction that conducts proceedings relating to the settlement of a decreased persons estate Bankruptcy Court A federal court of limited jurisdiction that handles only bankruptcy proceedings which are governed by federal bankruptcy Original Jurisdiction Trial courts Courts in which lawsuits begin trials take place and evidence is presented In the federal court system the district courts are trial courts Appellate Jurisdiction At as reviewing courts or appellate courts Cases can be brought before appellate courts only on appeal form an order or a judgment of a trial court or other lower court Jurisdiction of the Federal Courts Limited Federal Question A question that pertains to the U S Constitution an act of Congress or a treaty and provides a basis for federal jurisdiction in a case Diversity of Citizenship A basis for federal court jurisdiction over a lawsuit between citizens of different states and countries Exclusive Jurisdiction Jurisdiction that exists when a case can be heard only in a particular court or type of court Concurrent Jurisdiction Jurisdiction that exists when two different courts have the power to hear a case In Personam Jurisdiction over people In Rem Jurisdiction over things Jurisdiction in Cyberspace The internet s capacity to bypass political and geographic boundaries undercuts the traditional basis on which courts assert personal jurisdiction The Sliding Scale Standard Determine when the exercise of jurisdiction over an out of state defendant is proper In developing this standard the courts have identified three types of Internet business contacts 1 Substantial business conducted over the Internet a Example Contracts and Sales 2 Some interactivity through a Web site 3 Passive advertising o Jurisdiction is proper for the first category improper for the third and may or may not be appropriate for the second An Internet communication is typically considered passive if people have to voluntarily access it to read the message and active if it is sent to specific individuals International Jurisdictional Issues Most courts are indicating that minimum contacts doing business within jurisdiction are enough to compel a defendant to appear and that a physical with the laws in any jurisdiction in which it targets customers for its products Venue The most appropriate physical location for a trial Two state courts or two federal courts may have the authority to exercise jurisdiction over a case but it may be more appropriate or convenient to hear the case in one court than in the other In a civil case typically where the defendant resides whereas in criminal case normally is where the crime occurred Pretrial publicity or other factors may require a change of venue to another community especially in criminal cases when the defendant s right to a fair and impartial jury has been impaired Standing to Sue The legal requirement that an individual must have a sufficient stake in a controversy before he or she can bring a lawsuit The party bringing the lawsuit must have suffered a harm or have been threatened by a harm as a result of the action about which she or he has complained Justiciable Controversy A controversy that is not hypothetical or academic but real and substantial a requirement that must be satisfied before a court will hear a case PAGE 75 EXHIBIT 3 2 PUT ON NOTE CARD Trial Courts Courts in which trials are held and testimony taken State trial courts have either general or limited jurisdiction Small Claims Court A special court in which parties can litigate small claims without an attorney Appellate Reviewing Courts Every state has at least one which may be the state s highest court or me be an intermediate court About of the states have intermediate courts Courts of appeals do not conduct new trials in which evidence is submitted to the court and witnesses are examined Appellate Courts generally focus on questions of law not questions of fact Question of Fact In a lawsuit an issue that involves only disputed facts and not what the law is on a given point such as whether a party actually burned a flag Question of Law In a lawsuit an issue involving the application or interpretation of a law such as whether flag burning is a form of speech protected by the First Amendment by the U S Constitution Defer to the Trial Court s Findings of Fact Appellate courts normally defer to a trial courts findings on questions of fact because the trial court judge and jury were in a better position to evaluate testimony by directly observing witnesses gestures demeanor and nonverbal behavior during the trial Highest State Courts The highest appellate court in a state is usually called the Supreme Court but may be called by some other name The decisions of each state s highest court are final on all questions of state law o Only when issues of federal law are involved can a decision made by a state s highest court be overruled by the United States Supreme Court The Federal Court System A three tiered


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KSU FIN 26074 - Chapter 3

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