Chapter 3. Federal court system Court systems of the 50 states, Washington, DC (District of Columbia), and territories of the United States 3-2Copyright

Chapter 3

Federal court system Court systems of the 50 states, Washington, DC

(District of Columbia), and territories of the United States

3-2Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Limited-jurisdiction trial courts Courts that hear matters of specialized or limited nature Evidence can be introduced and testimony can be given

General-jurisdiction trial courts Courts that hear cases of a general nature that are not within

the jurisdiction of limited-jurisdiction trial courts Testimony and evidence at trial are recorded and stored for

future reference


Intermediate appellate courts Courts that hear appeals from trial courts No new evidence or testimony is permitted

Highest state court The highest court in a state court system It hears appeals from intermediate appellate state courts and

certain trial courts Decisions are appealable to the U.S. Supreme Court


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Article III of the U.S. Constitution provides that the federal government’s judicial power is vested in one “Supreme Court” It authorizes Congress to establish “inferior” federal courts

Pursuant to its Article III power, Congress has established the U.S. district courts U.S. courts of appeals U.S. bankruptcy courts


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• Hears cases that involve federal tax laws

U.S. Tax Court

• Hears cases brought against the United States

U.S. Court of Federal Claims

• Handles cases that involve tariffs and international trade disputes

U.S. Court of International Trade


• Hears cases that involve federal bankruptcy laws

U.S. Bankruptcy Court

• Exercises appellate jurisdiction over members of the armed services

U.S. Court of Appeals for the Armed Force

• Exercises jurisdiction over decisions of the Department of Veterans Affairs

U.S. Court of Appeals for Veterans Claims

The federal court system’s trial courts of general jurisdiction

There are 94 district courts The geographical area served by each court is

referred to as a district


The federal court system’s intermediate appellate courts

Circuit – The geographical area served by each court There are 13 circuits in the federal court system

The first 12 are geographical The 12th circuit court is called the District of Columbia

Circuit The 13th court of appeals is called the Court of Appeals for

the Federal Circuit


A U.S. Court of Appeals in Washington, DC, that has special appellate jurisdiction to review the decisions of the: Court of Federal Claims Patent and Trademark Office Court of International Trade


Created by Article III of the US Constitution Highest court in the U.S. Located in Washington, D.C. Composed of nine justices who are nominated by the

President and confirmed by the Senate Chief Justice of the U.S. Supreme Court▪ Appointed by the president

▪ Responsible for the administration of the Supreme Court

The other eight justices are Associate Justices of the U.S. Supreme Court


It is an appellate court It hears appeals from federal circuit courts of appeals and,

under certain circumstances, from federal district courts, special federal courts, and the highest state courts

No new evidence or testimony is heard The Supreme Court’s decision is final



• All the justices voting agree as to the outcome and reasoning used to decide a case

• It sets precedent for later cases

Unanimous

Unanimous

• A majority of the justices agree as to the outcome and reasoning used to decide a case

• It sets precedent for later casesMajorityMajority

• A majority of the justices agree as to the outcome of a case but not as to the reasoning for reaching the outcome

• It does not set precedent for later casesPluralityPlurality

• The lower court decision is affirmed• It does not set precedent for later casesTieTie


Type of Jurisdiction

Description

Federal question

• Cases arising under the U.S. Constitution, treaties, and federal statutes and regulations

• There is no dollar-amount limit for federal question cases that can be brought in federal court

Diversity of citizenship

• Cases between citizens of different states or between a citizen of a state and a citizen or subject of a foreign country

• Federal courts must apply the appropriate state law in such cases

• The controversy must exceed $75,000 for the federal court to hear the 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?


State courts and the courts of Washington, DC, and territories of the United States have jurisdiction to hear cases that federal courts do not have jurisdiction to hear Cases involving laws of states, Washington, DC, territories,

and local governments




Type of Jurisdiction

Description

In personam jurisdiction

• A court has jurisdiction over the parties to the lawsuit

• The plaintiff submits to the jurisdiction of the court by filing the lawsuit there

• Personal jurisdiction is obtained over the defendant through service of process to that person

In rem jurisdiction • A court has jurisdiction to hear and decide a case because it has jurisdiction over the property at issue in the lawsuit

Quasi in rem jurisdiction

• A plaintiff who obtains a judgment against a defendant in one state may utilize the court system of another state to attach property of the defendant that is located in the second state 3-21

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A statute that extends a state’s jurisdiction to nonresidents who were not served a summons within the state Exercise of long-arm jurisdiction is permitted over

nonresidents who have:▪ Committed torts within the state

▪ Entered into a contract either in the state or that affects the state (and allegedly breached the contract)

▪ Transacted other business in the state that allegedly caused injury to another person


A concept that requires lawsuits to 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 – may be requested so that an impartial jury can be found

The courts frown upon forum shopping Forum shopping – looking for a favorable court without a

valid reason


A contract provision that designates a certain court to hear disputes concerning the nonperformance of a contract

Choice-of-law clause: A contract provision that designates a certain state’s law or country’s law to be applied to disputes concerning the nonperformance of a contract


Zippo Manufacturing Company v. Zippo Dot Com, Inc. An important case that established a test for determining

when a court has jurisdiction over the owner or operator of an interactive, semi-interactive, or passive website


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?


Agencies that governments create to enforce regulatory statutes

Administrative law: Law that governments enact to regulate industries, businesses, and professionals Combination of substantive law and procedural law Substantive administrative law – Law that is enforced by

the administrative agency Procedural administrative law – Establishes the procedures

that an administrative agency must follow while enforcing substantive administrative laws


Created by the U.S. Congress State administrative agencies: Agencies created by

legislative branches of states to administer state regulatory laws

Local administrative agencies: Agencies created by cities, municipalities, and counties to administer local regulatory law

Substantive rule: A rule issued by an administrative agency that has the force of law and to which covered persons and businesses must adhere


Type of Power Description

Rule making Authority to issue substantive rules

Judicial authority Authority to adjudicate cases through an administrative proceeding

Executive power Power to investigate and prosecute possible violations of statutes and rules

Power to issue an administrative subpoena

Licensing Power to issue a license before a person can engage in certain professions or businesses


A federal statute that establishes procedures for federal administrative agencies to follow while conducting their affairs

Administrative law judge (ALJ): An employee of an administrative agency who presides over an administrative proceeding and decides questions of law and fact concerning a case ALJ’s decision is issued in the form of an administrative

order▪ Decisions are subject to judicial review



Documents

Chapter 3. Federal court system Court systems of the 50 states, Washington, DC (District of Columbia), and territories of the United States 3-2Copyright