Business Law

Chapter 3 The Role of Courts in Our Legal System

Objectives
List the basic parts of a state court system Identify when a lawsuit can be filed in a federal court Discuss the procedure of a trial Summarize the steps in a typical lawsuit*

Jurisdiction
The authority of a court to hear and decide a specific action.
Geographical area, or Right and power of a court to adjudicate (determine) matters concerning persons, property, or subject matter.

Jurisdiction in Cyberspace
Sliding-scale standard Substantial (contracts, sales, etc.)
Jurisdiction is proper

Some interactivity
May have jurisdiction

Passive advertising
No jurisdiction

Court Systems
U. S. Courts of Appeals
Federal Administrative Agencies U. S. District Courts Specialized U. S. Courts

Highest State Courts State Courts of Appeals State Trial Courts of General Jurisdiction
State Administrative Agencies

Local Trial Courts of Limited Jurisdiction

State Court System

Trial Courts
Trials are held and testimony given

Appellate Courts
Trials are reviewed and appeals heard

State Trial Courts

General Jurisdiction
County, district, superior, or circuit

Limited Jurisdiction
Special inferior trial courts or minor judiciary courts Small Claims Court, municipal court, probate court

Courts of Appeals
Examine the record of a case on appeal and determine whether the trial court committed an error Questions of law and procedure, but usually not questions of fact

Federal Court System

U. S. District Courts
Original jurisdiction in federal matters

U. S. Courts of Appeals U. S. Supreme Court

U. S. District Courts
Thirteen federal judicial circuits Each circuit subdivided into districts (currently 96, at least one in every state) Specialized U. S. Courts: Tax Court, Bankruptcy Court, Federal Claims

U. S. Courts of Appeals
Thirteen U. S. Courts of Appeals Twelve hear cases in their respective circuits One is the federal circuit and has national jurisdiction

U. S. Supreme Court
Only one national Supreme Court Nine justices, lifetime appointments Has original jurisdiction in rare instances, mostly is an appeals court

Federal Jurisdiction
Federal question issue of law based on the Constitution, treaty, or federal law (>$75,000) Diversity of citizenship
Citizens of different states Foreign country and citizens of a state Citizens of a state and citizens or subjects of a foreign country

Supreme Court Cases

No absolute right of appeal Thousands of cases, hears about a 100 a year Writ of certiorari order issued by the Supreme Court to a lower court to send the record of a case for review rule of four four justices agree to issue the writ

Lawyer functions as the clients advocate Presents the clients version of the facts to convince the jury or judge Judge responsible for appropriate application of the law

Adversary System of Justice

Court Procedure
Procedural law rules and standards for determining disputes in courts Complex, vary from court to court Federal and state rules

Pleadings
Inform each party of the claims of the other and specify the issues
Complaint and answer Counterclaim and reply

Complaint
Petition or declaration Filed by plaintiff against a defendant Contains:
Statement of jurisdiction Statement of entitlement to remedy Statement of remedy sought*

Procedure
Summons notifies the defendant that he or she is required to prepare an answer to the complaint Default judgment failure to answer or defend against a claim, plaintiff is awarded remedy sought

Procedure
Motion to dismiss (demurrer) pleading in which the defendant admits the facts as alleged by the plaintiff, but asserts that plaintiffs claim fails to state a cause of action Deny or grant

Answer
Either admits the allegations in the complaint or denies them and outlines any defenses that the defendant may have Raise a counterclaim (may be lost if not brought up) Plaintiff must reply

Pretrial Motions
Motion for Judgment on the Pleadings (no disputed facts, no outside evidence) Motion for Summary Judgment (outside evidence allowed, such as affidavits or documents)*

Discovery
Obtaining information from the opposing party or from other witnesses before trial
Prevents surprises Narrows the issues so trial is more efficient

Discovery
Depositions sworn testimony by the opposing party or any witness, recorded by a court official Interrogatories series of written questions for which written answers are prepared and signed under oath (directed to a party to the lawsuit)

Discovery
Other information
Admission of truth Inspect and examine documents or premises Physical or mental examinations

Noncompliance may result in contempt of court, or even a default judgment

At the Trial
Opening statements
Plaintiffs attorney goes first

Direct examination Cross-examination Redirect examination Recross-examination

At the Trial
Rebuttal evidence and testimony refuting the defendants case Rejoinder evidence and testimony refuting the rebuttal Closing arguments summary statement of their version

At the Trial
Motions to dismiss the case, for summary judgment, and for a directed verdict can be filed during the case Motion for Directed Verdict not sufficient evidence to support the claim

Posttrial Motions
Motion to set aside verdict and to hold a new trial
Judge may grant a new trial if convinced that the jury was in error but does not feel it appropriate to grant a judgment for the other side

The Appeal
Appellant party who appeals (petitioner) Appellee party in opposition (respondent) Briefs filed with reviewing court, contain arguments

The Appeal
No evidence Reversed error committed Remanded sent back for new trial Affirmed enforcement of courts judgment