2. The Courts and Litigation
• Trial court—parties to a lawsuit file pleadings
and present evidence to a judge or jury
– Primary purpose in civil cases—resolve disputes
between parties by first determining the true facts
and then applying appropriate legal principles
– Also known as lower courts
3. The Courts and Litigation
• Court of appeals—court of review
– Primary purpose—examine the trial court
proceedings to guarantee that parties received a
fair trial
– Legal error—error in the way the law is
interpreted or applied to a situation
– Also known as courts of appellate jurisdiction or
higher courts
4. The Courts and Litigation
• Two levels of courts in appellate jurisdiction
1. Intermediate courts of appeal
• Must review cases in which the parties request a
review
1. Courts of last resort
• Have discretionary right to review the cases
• Also known as supreme court
5. Federal Court System
• U.S. district courts
– 94 districts
– Trial courts
• Miscellaneous federal trial courts
– Examples
• Bankruptcy courts
• U.S. Court of International Trade
• U.S. Claims Court
6. Federal Court System
• U.S. courts of appeals
– 12 appellate circuits
– Hear appeals from district courts within their
boundaries
– 13th federal court of appeals with national
jurisdiction
7. Federal Court System
• U.S. Supreme Court
– One court
– Nine justices
– Primarily appellate court
– With limited exceptions, the Supreme Court is not
required to hear cases in which a party requests
review.
• Writ of certiorari
8. State Court Systems
• Most states pattern courts after the federal
system.
– Trial court
– Appellate courts
– State supreme court
• Many states have a small claims court.
9. The Courts and the Internet
• Web sites provide information for attorneys
and litigants.
• Many courts allow documents to be filed
electronically.
• Many judges post “tentative rulings” before
the hearing commences.
10. Jurisdiction
• Jurisdiction—authority that a court has to
hear a case
• Two factors determine whether court has
jurisdiction
1. Subject matter jurisdiction
2. Personal jurisdiction
• In rem jurisdiction—defendant’s property becomes a
substitute for personal jurisdiction
11. Jurisdiction
• State versus federal jurisdiction
– If a lawsuit arises under a state law and all of the
parties are residents of that state, then
jurisdiction is in the state courts.
– If a lawsuit arises under a federal law and all
parties are residents of the same state, then
jurisdiction is usually in the federal court located
in the state of residence of the parties.
12. Jurisdiction
• Federal courts have limited subject matter
jurisdiction.
• Diversity of citizenship
1. The plaintiff and defendant are not residents of
the same state, and
2. If the case is a claim for money damages, the
damages claimed must exceed $75,000.
13. Jurisdiction
• Exclusive jurisdiction—action must be brought
in federal court
• Concurrent jurisdiction—action can be
brought either in federal court or in state
court
– In cases where concurrent jurisdiction exists, the
plaintiff decides where to file the lawsuit.
14. Jurisdiction
• Supplemental jurisdiction—cases that consist
of more than one type of claim, one of which
is a matter of federal law and the other of
which is a matter of state law
– Also known as pendent or ancillary jurisdiction
• Multijurisdictional litigation
15. Jurisdiction
• Subject matter jurisdiction in state courts
– General jurisdiction
– Limited jurisdiction
• Constitutional limitations
– Due process of law
• State long-arm statutes
• Lack of jurisdiction renders judgment void
16. Venue
• Venue—choosing the court in the proper
geographical area of a state
• Federal court venue
• State court venue
• Court’s lack of proper venue does not render
a judgment void