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Chapter 2

Courts and Jurisdiction

Court Systems in U.S.

Federal court system State court systems

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 2-2

State Court Systems

Limited-jurisdiction trial courts Hear matters of specialized or limited nature Decision can be appealed to appealed to a general

jurisdiction court or an appellate court Small claims courts hear civil cases involving

small dollar amounts


State Court Systems

General-jurisdiction trial courts Hear cases that are not within the jurisdiction of

limited-jurisdiction trial courts Record and store testimony and evidence Decisions are appealable to an intermediate

appellate court or the state supreme court


State Court Systems

Intermediate Appellate Courts Hear appeals from trial courts Review trial court record to determine if there have

been any errors at trial that would require reversal or modification

No new testimony or evidence permitted


State Court Systems

Highest State Court Called “supreme court” in most states Hears appeals from intermediate state courts and

certain trial courts No new testimony or evidence permitted Decisions of state supreme courts are final, unless

a question of law is involved


Federal Court System

Special Federal Courts Limited jurisdiction

Tax Court Court of Federal Claims Court of International Trade Bankruptcy Court Court of Appeals for the Armed Forces Court of Appeals for Veterans Claims



U.S. District Courts Trial courts of general jurisdiction

Impanel juries Receive evidence Hear testimony Decide cases

At least one district court in each state Judges have lifetime appointments



U.S. Courts of Appeals Intermediate appellate courts Hear appeals from the district courts located in

their circuit 13 Circuits Lifetime appointments 3-judge panel



U.S. Courts of Appeals Review the record of lower courts or

administrative agency proceedings Determine if there has been any error of law that

would warrant reversal or modification of the lower court decision

No new evidence or testimony is heard Petitioner can request an en banc review


Supreme Court of the United States

Located in Washington, DC Hears appeals from:

Federal Circuit Courts of Appeals Federal District Courts Special federal courts Highest state courts

No new evidence or testimony heard



The Supreme Court is an appellate court 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



Decisions of the U.S. Supreme Court Unanimous Majority Plurality Tie

Petition for certiorari: A petition asking the Supreme Court to hear a case

Decisions of the U.S. Supreme Court Unanimous Majority Plurality Tie

Petition for certiorari: A petition asking the Supreme Court to hear a case



Writ of certiorari: An official notice that the Supreme Court will review a case

A justice who agrees with a case’s outcome but differs in reason for decision issues a concurring opinion

A justice who does not agree with a decision can file a dissenting opinion


Jurisdiction of Federal Courts

Federal question cases Arise from:

U.S. Constitution Treaties Federal statutes and regulations

No dollar-amount limit on cases Diversity of citizenship

Citizens of different states At least $75,000 in controversy


Jurisdiction of Federal Courts

Federal courts have exclusive jurisdiction to hear cases involving: Federal crimes Antitrust Bankruptcy Patent and copyright issues Suits against the United States

These courts also hear most admiralty cases


Case 2.1: U.S. Supreme Court Diversity of Citizenship

Case Hertz Corporation v. Friend 130 S.Ct. 43, 174 L.Ed.2d 627, Web 2009 U.S.

Lexis 5114 (2009) Supreme Court of the United States

Issue Is Hertz Corporation a citizen of California?


Jurisdiction of State Courts

Hear cases that federal courts do not have jurisdiction to hear

Concurrent jurisdiction with federal courts to hear cases involving: Diversity of citizenship Federal questions over which federal courts do not

have exclusive jurisdiction The defendant decides which court hears a concurrent

jurisdiction case


Standing to Sue, Jurisdiction, and Venue

Standing to Sue: Plaintiff must have a stake in the outcome of case

In Personam Jurisdiction: A court’s jurisdiction over a person A plaintiff, by filing a lawsuit with a court, gives

the court in personam jurisdiction over himself or herself



In Personam jurisdiction Personal jurisdiction exists over a defendant who

is within the boundaries of the state A corporation is subject to personal jurisdiction in

the state where it is incorporated, has principal office, or does business



Long-arm statute Allows state courts to obtain personal jurisdiction

over persons or businesses located in another state or country

Allows summons to be served in other states Defendant must have some minimum contact with

the state



Long-arm jurisdiction Exercised over non-residents who have:

Committed torts within the state Entered into a contract either in the state or that

affects the state Transacted other business in the state that

allegedly caused injury to another person



In rem jurisdiction: Jurisdiction to hear a case because of jurisdiction over the property of the lawsuit

Quasi in rem jurisdiction: Jurisdiction that allows a plaintiff who obtains a judgment in one state to try to collect the judgment by attaching property of the defendant located in another state



Venue Lawsuits must be heard by the court with

jurisdiction that is nearest the location in which the incident occurred or where the parties reside

Change of venue - to avoid pretrial publicity Forum-Selection and Choice-of-Law Clauses

Parties’ contract specifies which court will hear a legal dispute


Case 2.2: Jurisdiction over an Internet Seller

Case Chanel, Inc. v. Banks Web 2010 U.S. Dist. Lexis 135374 (2010) United States District Court for Maryland

Issue

Does the court have personal jurisdiction over the

defendant?


cheeseman blaw8e ch02

Business

courts of appeals

thesupreme court

intermediateappellate

generaljurisdiction

jurisdiction of state

federal circuit courts

supreme courts decision

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