Chapter 2 The Resolution of Private Disputes State Courts and Their Jurisdiction The United States has 52 court systems a federal system plus a system for each state and the District of Columbia Courts of Limited Jurisdiction Minor infractions and criminal and civil cases that involve small amounts of money is settled in the courts of limited jurisdiction o Examples of these courts include traffic courts probate courts and small claims courts These courts handle large amounts of cases so the procedures are informal and do not require attorney representation Parties often argue their own cases No records of proceedings are kept and appeals from the decisions require a new trial Trial Courts Trial courts are similar to courts of limited jurisdiction but differ in the sense 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 Trial courts handle large amounts of money and major criminal penalties o Trials courts do keep record of trials and proceedings the records are important if the trial court decision is appealed o The parties in trial courts are almost always represented by an attorney Overall trial courts have no restrictions on what subject they cover and each county usually has one trial court Appellate Courts Appellate courts review the records of the proceedings of the trial court They may hear appeals from state administrative agency decisions Some states have only one appeals court usually the Supreme Court but also have an intermediate appellate court Jurisdiction and Venue over the case A plaintiff cannot just sue the defendant because the court must have jurisdiction Even if the court has jurisdiction the requirements of the venue must be fulfilled Subject Matter Jurisdiction o Subject matter jurisdiction is a court s power to decide the type of dispute involved in the case o Ex criminal courts cannot hear civil cases o Ex a 500 000 claim for breach of contract cannot be pursued in a small claims court In Personam Jurisdiction o A court with subject matter jurisdiction cannot decide a civil case unless it has either in personam jurisdiction or in rem jurisdiction based on the residence location or activities of the defendants A state court has in personam jurisdiction over defendants who are citizens or residents of the state o Courts are given in personam jurisdiction over out of state residents Ex doing business within the state committing a crime in the state In Rem Jurisdiction o Based on the presence or property within the state o 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 o Venue requirements can cause a court with jurisdictions to not decide on o Venue requirements applicable to state courts typically are set by state statutes which normally determine the county in which a case must be brought the defendant can possibly change the venue location if the justice so requires o Ex if a fair trial is impossible within a particular county change of the case venue Role of Forum Selection Clauses o forum selection clause a clause that is sometimes in contracts that says that disputes between parties regarding matters connected with the contract must be litigated in the courts of a particular state ex a subscriber sues a company in a Pennsylvania court but if he wishes to litigate his claim he must sue in an appropriate Virginia court because of what it says in the company s contract Federal Courts and Their Jurisdiction Federal District Courts system District Court Jurisdiction Lawsuits in the federal system begin in the federal district courts Each district is designated as a separate district for purposes of the federal court o The two most important bases of federal district court civil jurisdictions Diversity jurisdiction protects out of state defendants from biased state courts this jurisdiction exists when the case is between citizens of different states and governments of foreign nations and when the monetary amount in controversy exceeds 75 000 Federal question jurisdiction exists when the cases arises under the Constitution laws or treaties of the United States Concurrent Jurisdiction and Removal no amount in controversy federal district courts have concurrent jurisdiction with state courts meaning that both state and federal courts have jurisdiction over the case if the defendant acts correctly he can move his case from a state court to the federal court since they have concurrent jurisdiction Specialized Federal Courts In the federal system there are certain specialized courts o o ex Court of Federal Claims which hears claims against the United States the Court of International trade which is concerned with tariff customs the Tax court which reviews certain IRS determinations the decisions of these courts can be appealed to a federal court of appeals The Federal Court of Appeals only review the conclusions reached by the lower Federal Court of Appeals federal courts o There are 13 circuit courts of appeals 11 numbered circuits covering several states each a District of Columbia circuit and a separate federal circuit The most important function of the Court of Appeals is to hear appeals from decisions of the federal district courts o Appeals from a district court ordinarily proceed to the court of appeals for that district court s region The Federal Court of Appeals for the Federal Circuit hears appeals from specialized federal courts as well as the tax court The U S Supreme Court The U S Supreme Court the highest court in the land is mostly an appellate court that has the jurisdiction to choose which appeals to hear Sometimes the U S Supreme Court has original jurisdiction or acts as a trial court for controversies between two states cases involving foreign ambassadors or parties and between the U S and another state Civil Procedure from beginning to end probable Civil procedure is the set of legal rules establishing how a civil lawsuit proceeds To win the case the plaintiff must provide credible evidence to why his facts are the attorney presents the client s version of the facts and tries to convince the judge or jury that it is true and also rebuts allegations by the other party Service of the Summons A summons notifies the defendant that he she or it is being sued states the name of the plaintiff and when the defendant must show up