Learning Objectives

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CHAPTER 2
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Learning Objectives

• State courts and their jurisdiction
• Federal courts and their jurisdiction
• Civil Procedure
• Alternative Dispute Resolution

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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 appellate (reviews trial
  court)

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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), such as Tax Court, Court
  of Intl Trade, Court of Federal Claims, etc.

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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 claims and
  misdemeanor courts)
• Limited Jurisdiction Courts (i.e., family,
  probate, traffic, zoning)

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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 general
  jurisdiction
• Examples traffic court, tax court, family court

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Subject-Matter Jurisdiction

• Subject-matter jurisdiction refers to a courts
  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 rights and duties
  (e.g., contracts, torts), as well as
  non-criminal public matters (e.g., zoning,
  probate)

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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 courts authority

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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 courts authority
• Example a dispute over a house sale

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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 jurisdiction over
  Oklahoma defendants?

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Bombliss v. Cornelsen

• Analysis and Application to Facts
• Defendant must purposefully avail himself of the
  privilege of conducting activities within the
  state such that he would reasonably anticipate
  being haled into the states 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
• Holding In personam jurisdiction exists. Trial
  court decision reversed and case remanded.

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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 Constitution, laws, or
  treaties of the United States

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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 facie case
  (i.e., proved the basic case), the burden of
  proof may shift to the defendant

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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 ?
• Case proceeds to trial or settlement

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Civil Pre-Trial Procedure

• Plaintiffs complaint or petition plus the
  defendants answer or response are known as the
  pleadings
• Defendant may enter a counterclaim against the
  plaintiff or a cross-complaint against a third
  party
• Other parties may enter the case

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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!

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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 concerns

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Civil Trial Procedure

• Jury Selection (Voir Dire)
• Opening Statement from each party

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Civil Trial Procedure

• Plaintiffs case through direct examination of
  witnesses (defendant performs cross-examination)
  and defendants case through direct examination
  (and plaintiffs cross-examination)

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Civil Trial Procedure

• Closing Argument or Summation from each party
• Jury verdict

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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 of
  evidence leads to only one conclusion)

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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 only by a judge
• E.g., whether a statute means X or Y, or one law
  or another applies to the facts

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Civil Trial Post-Trial Procedure

• After the jury verdict, a party may make a motion
  for new trial, judgment non obstanto verdicto
  (notwithstanding the verdict) or J.N.O.V., or
  remittitur (defendants request for the judge to
  reduce the amount of damages the jury
  recommended very common)

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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
• Bottom line a judgment is issued and enforcement
  of the judgment begins
  

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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 alternative dispute
  resolution

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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 resolution by
  rent-a-judge, minitrial, summary jury trial, or
  association tribunal

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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,
  high-tech or trade-secret disputes)
• May be required by clause in contract

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