CHAPTER 2 Learning Objectives State courts

CHAPTER 2

Learning Objectives • State courts and their jurisdiction • Federal courts and their jurisdiction • Civil Procedure • Alternative Dispute Resolution 2 -2

The U. S. Judicial System • The United States has a federal court system and each state has a court system • A Court is established by a government to hear and decide matters before it and redress past or prevent future wrongs • Jurisdiction (the power to hear and speak) may be original (trial) or 2 - 3 appellate (reviews trial court)

Federal Court Hierarchy • U. S. Supreme Court (appellate jurisdiction; final review and final decision) • Courts of Appeals (appellate jurisdiction) • District Courts (trial courts; original jurisdiction) or Statutory Courts (original limited jurisdiction), 2 - 4 such as Tax Court, Court of Int’l

State Court Hierarchy • State Supreme Court (final appellate) • State Civil Court of Appeals and State Criminal Court of Appeals • District Courts (trial courts for civil matters over certain $ amount) and Criminal Courts • County Courts (trial courts for civil matters under certain $ amount) • Justice of the Peace Courts (small 2 -5 claims and misdemeanor courts)

General vs. Limited Jurisdiction • General jurisdiction courts (i. e. , trial courts) hear most types of cases – Levels generally classified according to dollar amount of damages or location – Examples: county courts, district courts • Limited jurisdiction courts hear specialized types of cases and appeals from these decisions often require a new trial in a court of 2 - 6 general jurisdiction

Subject-Matter Jurisdiction • Subject-matter jurisdiction refers to a court’s authority to hear a particular type of dispute. • Courts of criminal jurisdiction hear trials of crimes and misdemeanors, which are offenses against the public at large • Courts of civil jurisdiction hear and decide issues concerning private 2 - 7 rights and duties (e. g. , contracts,

In Personam or In Rem Jurisdiction • In addition to subject-matter jurisdiction, a court must have either in personam or in rem jurisdiction • In personam jurisdiction requires that the defendant be a resident of, located within, or have committed acts within the physical boundaries of the court’s authority 2 -8

In Personam or In Rem Jurisdiction • In rem jurisdiction applies when property that is the subject of the dispute is located within physical boundaries of the court’s authority – Example: a dispute over a house sale 2 -9

Bombliss v. Cornelsen • Facts & Procedural History: – Illinois residents sued Oklahoma residents in Illinois court and the Oklahoma defendants moved to dismiss for lack of in personam jurisdiction – Trial court dismissed complaint and Plaintiffs appealed • Issue: Does the Illinois long-arm statute permit state courts to exercise 2 - 10 jurisdiction over Oklahoma

Bombliss v. Cornelsen • Analysis and Application to Facts: 2 - 11 – Defendant must purposefully avail himself of the privilege of conducting activities within the state such that he would reasonably anticipate being haled into the state’s court – Where a contract exists, minimum contacts shown by negotiations between parties, the course of dealing between parties, and foreseeable future consequences – Existence of a contract, defendants’ interactive website, and contact with potential customers of plaintiffs equate to minimum contacts

Federal Court Jurisdiction • Federal courts must have jurisdiction based on diversity or federal question • Diversity jurisdiction exists when the dispute is between citizens of different states and amount in controversy exceeds $75, 000 • Federal question jurisdiction exists when the dispute arises under the 2 - 12 Constitution, laws, or treaties of the

Civil Procedure • A set of rules establishing how a lawsuit proceeds from beginning to end • In an adversarial system, the plaintiff bears the burden of proof to prove his/her case by a preponderance of the evidence • Once the plaintiff has made a “prima 2 - 13 facie” case (i. e. , proved the basic

Civil Pre-Trial Procedure • Action or event occurs allegedly causes harm • Injured party, known as Plaintiff, files a Petition or Complaint • Sheriff serves “process” (writ, notice, summons) on Defendant • Defendant Answers Complaint 2 - 14

Civil Pre-Trial Procedure • Plaintiff’s complaint or petition plus the defendant’s answer or response are known as the pleadings • Defendant may enter a counterclaim against the plaintiff or a cross-complaint against a third party 2 - 15 • Other parties may enter the case

Civil Pre-Trial Procedure • Motion Practice: some motions ask the judge to decide the result before trial – Motion to dismiss (or demurrer) – Motion for judgment on the pleadings – Motion for summary judgment • Motions should NOT be taken lightly! 2 - 16

Civil Pre-Trial Procedure • Discovery: Obtaining evidence from the other party through interrogatories, requests for admissions, requests for documents, and depositions – The discovery process can be a battleground • See Allstate Indemnity Co. v. Ruiz • Pretrial Conference: where the judge will hear and rule on many evidentiary issues, discovery disputes, and other 2 - 17

Civil Trial Procedure • Jury Selection (Voir Dire) • Opening Statement from each party 2 - 18

Civil Trial Procedure • Plaintiff’s case through direct examination of witnesses (defendant performs crossexamination) and defendant’s case through direct examination (and plaintiff’s cross-examination) 2 - 19

Civil Trial Procedure • Closing Argument or Summation from each party • Jury verdict 2 - 20

Civil Trial Procedure • Trial motions include: motions in limine (motion to limit evidence), voluntary non-suit or dismissal (drop the case), motion for compulsory non -suit or summary judgment • After summation or closing argument, a party may move for a mistrial (overwhelming prejudice or injustice) or directed verdict (weight 2 - 21 of evidence leads to only one

Civil Trial Procedure • Trier of Fact sees material evidence (physical objects, documents), hears testimony of witnesses (who provide factual evidence), and decides outcome of the case based on facts; trier of fact may be judge or jury • Matters of law are issues not of fact, but of law; matters of law decided 2 - 22 only by a judge

Civil Trial Post-Trial Procedure • After the jury verdict, a party make a motion for new trial, judgment non obstanto verdicto (notwithstanding the verdict) or J. N. O. V. , or remittitur (defendant’s request for the judge to reduce the amount of damages the jury recommended; very common) 2 - 23

Civil Trial Post-Trial Procedure • After a judgment has been entered, losing party may appeal decision to a higher court • After a judgment, winning party must have the judgment executed (carried out) to obtain money, property, or action ordered by the court 2 - 24 Bottom line: a judgment is issued •

Point of Procedure • Not all dispute resolution mechanisms in the legal system are heard by a judge • Disputes with government often resolved by the relevant administrative agency – Administrative agencies generally have a unique dispute resolution process (hearings and appeals) • Also, disputants may choose 2 - 25

Alternate Dispute Resolution • Arbitration: dispute settled by one or more arbitrators selected by the parties to a dispute; relatively formal; Uniform or Federal Arbitration acts typically used • Mediation: parties choose neutral party to aid resolution of dispute • Reference to Third Party: dispute 2 - 26 resolution by rent-a-judge, minitrial,

Why Choose ADR? • Less costly, in general • May be more appropriate method of resolution for certain types of cases (e. g. , family law disputes, real estate disputes between neighbors, hightech or trade-secret disputes) • May be required by clause in contract 2 - 27