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Module 02
The Court Systems
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Learning Objectives
Upon successful completion, the student will be able to:
Describe the American court system;
Identify court jurisdiction for cases;
Analyze relations between court systems.
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Organization of the Court Systems
Both state and federal court systems have
Lower courts: Courts of Original Jurisdiction
Where disputes are initially brought and tried
Generally known as trial courts
Determine issues of fact
Apply law to the facts for resolution
Appellate Courts: Courts of Appellate Jurisdiction
Where lower court decisions are reviewed
Look at issues of law
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Federal Judges
Federal Judges
Federal judges are nominated by the President.
Confirmed by a majority vote in US Senate
Lifetime appointment
May be removed from office only if Congress impeaches them (intricate
impeachment process and rarely happens)
Job security guarantees that judges are independent and free from
political pressure.
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State Judges
Judges chosen by variety of methods:
Elected, appointed or mixture of both
Unlike federal court, most state judges serve fixed terms.
Evidence indicates that with elected judges the average in tort cases
are larger and out-of-state companies are treated more poorly than in
states with appointed judges.
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Judicial Immunity
A judge is absolutely immune from suit for damages for judicial acts
taken within his/her jurisdiction.
Without this, judges may fear being sued by unhappy party to a
lawsuit.
Purpose: Protects judges from personal abuse by parties who
appear in court.
Extends to parties (such as court employees) performing services
related to judicial functions.
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Hartsoe v. Christopher
Hartsoe sued Montana state Judge Christopher in federal and in
state courts.
Claimed the judge violated his U.S. and Montana constitutional
rights.
Federal District Court dismissed case based on judicial immunity.
Federal Court of Appeals upheld dismissal.
Hartsoe appealed dismissal from state court. Asserted there is no
immunity when a state employee, including a judge, violations state
constitutional rights.
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Hartsoe v. Christopher (2)
Montana Supreme Court affirmed dismissal by state district judge.
Christopher acted in his capacity as a state judge.
Judge Christopher has judicial immunity from Hartsoe’s claims.
“A member, officer, or agent of the judiciary is immune from suit for
damages arising from discharge of official duty associated with
judicial actions of the court.”
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Federal District Courts
Courts of original jurisdiction
Use juries or judge as“trier of fact”
Trial courts deal in issues of fact.
Federal trial courts also use judicial officers called“magistrates”
who are under supervision of district judge
94 federal districts in the court system
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U.S. Courts of Appeals
12 courts
Usual rule: There is a right to appeal to the relevant appeals court
from district court
3 judge panels deal in issues of law and review most decisions.
En banc proceeding means all active judges in a circuit will a hear a
case (small number of cases done this way)
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Specialized Federal Courts
Have limited jurisdiction
Such as U.S. Bankruptcy Courts
Court of Appeals for the Federal Circuit – takes appeals from
U.S. District Courts in patent, trademark and copyright cases
U.S. Court of Federal Claims
U.S. Court of International Trade
U.S. Tax Court
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The U.S. Supreme Court
Highest court in the country
Cases usually heard by 9 justices
Term begins First Monday in October in Washington, D.C. followed
by one in March
Receives thousands of petitions each year
Issues about 70-80 opinions per term
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The U.S. Supreme Court (2)
Reviews cases from
U.S. District Courts
U.S. Courts of Appeals (primary source of cases)
Highest Courts of the States
Review is through Writ of Certiorari
Often deal with Constitutional decisions
If writ not granted, lower court decision is final
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The Typical State Court System
State court of “Original Jurisdiction”
Where case is first brought; deals in issues of fact
Often called District Court
In NY, is called the Supreme Court”
State court of Appellate Jurisdiction (1/2 states do not have)
Deals with appeals and issues of law
Usually called Court of Appeals
Can have different names (District Court of Appeals in FL; Appellate Division in
State Supreme Court
Second appellate review dealing with issues of law
Usually called Supreme Court (but in NY, is called “Court of Appeals”)
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Small Claims Courts
Court of limited jurisdiction.
In most states claims may not exceed $5,000.
In California amount is $10,000
Good for collecting small debts.
Procedure is less formal.
Representation by attorney not necessary and not permitted in some
Faster and less expensive than district courts.
Websites guide parties through procedures
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Rules of Civil Procedure
(United States Code, Title 28)
Federal Rules of Civil Procedure: Govern procedural aspects of
litigation
Pleadings
Discovery
Trial procedures
Relevant motions
States are free to develop their own procedural rules.
Most adopt the Federal Rules of Civil Procedure or very similar rules
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Jurisdiction: Right of a court to hear and decide the case
A number of courts may have jurisdiction over a given case.
Court needs jurisdiction over the subject matter and needs
jurisdiction over the persons or property
If jurisdiction is lacking, judgment is null and void.
Jurisdiction
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Jurisdiction (2)
Literal Meaning: “The power to speak of the law”
Plaintiff must select a court that has
Subject-matter jurisdiction
Created by constitution or statute
and
Personal jurisdiction over
The person of the defendant
or
The property of the defendant
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Subject Matter Jurisdiction: Federal Courts
Federal court jurisdiction is derived from the U.S. Constitution
Federal courts may hear cases involving federal questions
Cases in which the U.S. is a party to the suit
Cases involving citizens of different states or from another nation:
Called Diversity of citizenship jurisdiction:
Amount in Controversy is more than $75,000
No $ amount needed for cases involving federal law
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A particular court may resolve a particular subject matter:
Wills & Trusts: Probate Court
Divorces, Child Custody: Domestic/Family Court
Municipal Matters: Municipal Court
Small Claims Court – Limited claims of usually $5000 or less, sometimes
up to $7,500 will be heard
Subject Matter Jurisdiction: State Courts
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Subject Matter Jurisdiction: State Courts (2)
If there is not a particular subject matter, case goes to general trial
court
Courts of original jurisdiction – where case is first brought
Courts of appellate jurisdiction – where lower court decisions are
reviewed
If there is no jury, judge decides the facts and applies the law
General right to appeal to at least one higher court
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London’s Commercial Court
In international contracts, parties usually state where disputes will be
resolved.
The Commercial Court in London is a popular forum.
Trials handled by one judge
No jury
Trials usually occur within a year of dispute
Finished rather quickly
Loser pays winner’s attorney’s fees
English courts are respected; judgment likely to be enforced in other
countries.
Remedies have been innovative and relevant to commercial matters.
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Personal Jurisdiction in Personam Jurisdiction
Over the person, usually
through
Summons through service of
process or substituted service
Residency relevant
Doing business in the state
Submission to the jurisdiction
Public or private process
server will serve summons.
Out of state defendants
Jurisdiction is more difficult
Serve them while in the state
May not “trick” them to get into
the state for service of process
Businesses active in a state
subject to jurisdiction
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Jurisdiction Over Out-of-State
Business Defendants
Long-arm Statutes
Aimed at non-resident businesses
Protects states’ citizens from business defendants who do business in
the state and then leave
Jurisdiction over corporations:
State in which corporation is established
State where has business headquarters or main plant
State in which entity is doing business
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Jurisdiction and the Internet
Jurisdiction: Where defendant has engaged in business in the state.
Not Appropriate: When defendant’s business contact with state is
only informational.
Even if it is an interactive website
If website provides information and allows customers to make
orders:
Provides an e-mail address for inquiries
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Blimka v. My Web Wholesaler, LLC
My Web Wholesalers (of Maine) does business on the Internet.
Blimka (of Idaho) surfed the net, found My Web and called
DePalma, a My Web manager.
Ordered 26,500 pairs of jeans for $20,935 and sent money
Shipment of 16,000 jeans arrived. Blimka called My Web to
complain about quality; My Web said not responsible
Blimka sued My Web for fraud in Idaho court. Process served on

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Blimka v. My Web Wholesaler, LLC (2)
No response by defendants; court issued a judgment against both
defendants, saying it had jurisdiction. They appealed.
HELD: Affirmed. Idaho court has jurisdiction.
Defendants’ actions invoked the Idaho long-arm statute.
Defendants purposeful actions in Idaho created minimum contacts with
Idaho that does not offend 14th Amendment “traditional notions of fair
play and substantial justice.”
Blimka awarded attorney fees and costs.
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Jurisdiction Over Property
In rem jurisdiction
In rem (rem means “the thing”)
The dispute between the parties is over property.
Where property is located creates jurisdiction.
Whether the defendant-property owner is within the jurisdiction does not
matter.
Tangible property creates in rem jurisdiction – i.e real estate.
Intangible property also creates in rem – i.e. bank accounts, stocks.
If property is removed to another state, no in rem jurisdiction.
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Exclusive Jurisdiction
Federal courts have exclusive jurisdiction over some matters.
Examples:
Federal crimes
Bankruptcy
Patents
Copyrights
Federal questions
courts.
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Exclusive Jurisdiction (2)
State courts have exclusive jurisdiction over some matters.
Examples:
Divorce
Adoption
Matters controlled by state government
Supremacy of federal law—state jurisdiction cannot infringe on
federal jurisdiction.
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Concurrent Jurisdiction
Federal and state courts have exclusive jurisdiction over some
matters; HOWEVER,
Sometimes both state & federal courts have concurrent jurisdiction.
Plaintiff may bring suit in either court system
If plaintiff chooses state court, defendant may have right to remove
to federal court (right of removal in diversity of citizenship cases).
If plaintiff files suit in defendant’s home state court, defendant
Sometimes Congress gives federal courts exclusive jurisdiction over
an area of law.
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Applying Appropriate Law In Federal Court
Issue: When there is diversity of citizenship, which substantive law
should the federal court apply?
Ex: Dr. Dre and P Diddy are in dispute over rights to revenue from a
concert.
Dr. Dre sued P Diddy in California and both are from California, so no
diversity, case would be decided in California court.
Ex: P Diddy is from California & Dr. Dre is from Florida.
If amount in controversy exceeded $75,000, federal court can decide
case due to diversity of citizenship.
Federal courts will apply law of the relevant state.
Courts apply law of state “with most significant interests” to the outcome.
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Erie RR CO. V. Tompkins (1938)
On “a dark night” a protruding object from train owned by Erie RR hit
Tompkins as he stood next to the tracks in Pennsylvania
He claimed accident caused by negligent operation of train.
Tompkins: Pennsylvania citizen
Erie: Incorporated in NY
Accident: In Pennsylvania
If federal common law applies: Erie is liable.
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Erie RR CO. V. Tompkins (1938) (2)
If Pennsylvania common law: Tompkins trespassed & Erie is not
liable.
Federal district court applied federal common law. Jury awarded
$30,000 to Tompkins. Affirmed by the Court of Appeals. Erie
appealed to the Supreme Court.
Held: Concept of federal common law in diversity of citizenship
cases is ended. Courts will apply a state’s law.
Pennsylvania law applies as PA has most interests in the matter.
Tompkins is a trespasser. Erie is not liable.
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Applying Appropriate Law In State Court
Incidents of the case take place in more than one state.
Conflict of laws or choice of law rules apply.
Rules vary according to nature of dispute, i.e.
Contract cases: Laws of state in which contract was made will be
applied, if contract did not specify the governing law.
Tort cases: Laws of state where tort takes place.
States try to look at interests of the parties, government, policies.
General rule: Laws apply for state that has the most“significant
interest”
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Venue: Appropriate geographical location (proper place) where the
lawsuit is heard
Contracts can provide forum selection clause.
In well-publicized cases, defendants will ask for change of venue.
Will be in same court system, but likely in a different physical
location
Venue
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Venue (2)
Doctrine of forum non conveniens – a special venue doctrine: Either
party may request a change of venue to a more convenient court
that could hear the case.
Court considers such issues as
Where actions of case take place
Where witnesses are located
Unfair burdens to parties
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THE END
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