978-0134004006 Chapter 2 Lecture Note

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Voltaire

I. Teacher to Teacher Dialogue

preconceptions.

Among these is the average undergraduate’s notion of how trials are conducted and the role

of attorneys in that process. Invariably these perceptions center on popular television series such

as “Law and Order” and “Court TV.” This is not all bad. Current media focus on numerous law-

related issues has generated a whole new wave of public interest in the workings of our legal

Trials are long, tedious, emotionally, and financially draining processes for all parties concerned.

In many ways, a trial represents a failure by the parties to reach some sort of satisfactory solution

of the issue beforehand. Rarely do the parties actually want to go through a labyrinth of

pleadings, motions, and the like, feeling all the while totally dependent on the sometimes

stage and how even fewer of those are actually reported in the National Reporter System.

Additionally, a fair amount of time should be spent reviewing the growing trend toward

alternative dispute resolution (ADR) mechanisms. Personal experience examples might be helpful

in illustrating the growing trends toward ADR. To complete the cycle, we can then proceed to

COURTS

AND JURISDICTION

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II. Chapter Objectives

1. Describe state court systems.

2. Describe the federal court system.

III. Key Question Checklist

 If the dispute or controversy needs to be resolved in a court of law, which court has

jurisdiction?

 Once jurisdiction is established, was the proper sequence of pretrial steps taken?

 Was the trial sequence properly followed?

 After the trial is completed, are any appeals from the decision applicable?

IV. Text Materials

One objective of this chapter is to familiarize students with the role of the major players in those

events.

The federal court system and the court systems of the 50 states and the District of Columbia are

State Court Systems

Limited-Jurisdiction Trial Court – Inferior trials like traffic courts, juvenile courts, justice-of-

General-Jurisdiction Trial Court – Courts of Record keep a record of the testimony and

Intermediate Appellate Court – Courts of Appeal hear appeals from trial courts, reviewing

Highest State Court – State supreme courts hear appeals from intermediate state courts and

Contemporary Environment: Delaware Courts Specialize in Hearing Business Disputes

Delaware has created a special Chancery Court to decide business litigation, with a reputation for

handling corporate matters. Delaware’s laws also tend to favor corporate management, so

Courts and Jurisdiction

Federal Court System

Special Federal Courts – There are six courts of limited jurisdiction: the U.S. tax court, federal

U.S. District Courts – These are the federal court system’s 94 trial courts of general jurisdiction.

U.S. Courts of Appeal – These are the federal court system’s 13 intermediate appellate courts.

Supreme Court of the United States

The Supreme Court is composed of nine justices who are nominated by the President and

Contemporary Environment: The Process of Choosing a U.S. Supreme Court Justice

The President appoints Supreme Court justices, with the advice and consent of the Senate

Jurisdiction of the U.S. Supreme Court – The Supreme Court hears appeals from the federal

district courts and from the highest state courts. Legal briefs are filed, oral arguments are made,

Decisions by the U.S. Supreme Court – Congress has established the rules for the mandatory

appellate review by the Supreme Court, which may also elect to hear cases at its discretion.

Majority Decision – Decisions by the Supreme Court are considered majority decisions

Plurality Decision – A plurality decision is when the majority of the justices agree on the

Tie Decision – In this case, the winner in the lower court prevails. This does not serve as

precedent.

Concurring Opinion – When a justice agrees with the outcome of the majority, but not

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opinion.

Contemporary Environment: “I’ll Take You to the U.S. Supreme Court!”

This discusses the process necessary to win a review by the U.S. Supreme Court.

Jurisdiction of Federal Courts

questions with no dollar amount limit.

Diversity of Citizenship – The federal courts have jurisdiction to hear cases involving diversity

Florida

Facts: Chanel is an international cosmetics company, which averred that a Chinese resident

Issue: Chanel asked the court for permission to serve the defendant electronically.

will defend in the case.

Jurisdiction of State Courts – State courts hear cases that the federal courts do not have the

jurisdiction to hear.

Standing to Sue, Jurisdiction, and Venue

Standing to Sue – The plaintiff must have a stake in the outcome of the lawsuit.

Defendants disputing the jurisdiction of a court may make a special appearance to argue their

case, and cannot be served while making this appearance.

Courts and Jurisdiction

minimum contact with the state.

Landmark U.S. Supreme Court Case Minimum Contacts

International Shoe Company v. State of Washington

International Shoe had salespeople that sold shoes door-to-door within the state of Washington,

International, which appealed to the U.S. Supreme Court. The Supreme Court ruled that

International had neither casual nor irregular contacts within the state, and was, therefore, subject

to in personam jurisdiction and service upon one of their agents, based on their “minimum

contacts” within the state. The Supreme Court clearly stated that the Due P/rocess Clause permits

substantial justice.”

Critical Legal Thinking Questions: There are firmly established standards developed through

case law, which allow a court to determine when minimum contact has been made with a state.

Case 2.2 Long Arm Statute: MacDermid, Inc. v. Deiter

Second Circuit

Facts: Prior to her employment termination, the defendant took proprietary property from her

employer who in turn sued her to get it back.

Issue: Does the district court have personal jurisdiction over the defendant?

Decision: Yes

In Rem Jurisdiction – Courts may have jurisdiction over property found within the state, based

on in rem (over the thing) jurisdiction.

Quasi In Rem Jurisdiction – Attachment jurisdiction occurs when a plaintiff who has obtained a

Venue – The court with the jurisdiction that is located closest to where the incident occurred or

where the parties live should hear the lawsuit.

Pretrial publicity may prejudice jurors and may lead to a request for a change of venue in order to

get a more impartial jury. Forum shopping is the process of looking for a more favorable court

Forum-Selection and Choice-of–Law Clauses – Because many business agreements are formed

between people from different states and different countries, many contracts have clauses that

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2.3 Forum-Selection Clause: Fteja v. Facebook, Inc.

Southern District of New York

Facts: The plaintiff contends that Facebook committed religious discrimination in closing his

Facebook account. Facebook filed a motion to have the suit moved to federal court, the Northern

District of California, based on a clause in the click wrap agreement the plaintiff signed when he

opened his account.

Jurisdiction in Cyber Space

Today, with the advent of the Internet and the ability of persons and businesses to reach millions

of people in other states electronically, particularly through websites, modern issues arise as to

International Law: Judicial System of Japan

There is very little litigation in Japan when compared to the United States. A primary reason for

the difference is cultural because Japan nurtures the attitude that confrontation should be avoided.

Other reasons include the high cost that must be borne by plaintiffs who want to file a lawsuit.

V. Key Terms and Concepts

 Article III of the U.S. Constitution— It provides that the federal government’s judicial

power is vested in one “Supreme Court.” This court is the U.S. Supreme Court.

administration of the U.S. Supreme Court.

 Choice-of-law clause—A contract provision that designates a certain state’s law or

country’s law that will be applied in any dispute concerning nonperformance of the

contract.

 Circuit—The geographical area served by each U.S. court of appeals.

Courts and Jurisdiction

and other business issues.

 Dissenting opinion—An opinion which sets forth the reason why a justice of the Supreme

Court does not agree with a decision.

 District—The geographical area served by a U.S. district court.

 District of Columbia Circuit—The 12th circuit court, located in Washington DC.

statutes and regulations.

 FISA warrant—A warrant issued by a FISA Court for the government to conduct

surveillance against persons who are suspected of being threats to national security.

 Forum-selection clause—Contract provision that designates a certain court to hear any

dispute concerning nonperformance of the contract.

 Highest state court—The highest court in a state court system; it hears appeals from

intermediate appellate state courts and certain trial courts.

 In personam jurisdiction (personal jurisdiction)—Jurisdiction over the parties to a

lawsuit.

of the lawsuit.

 Intermediate appellate court (appellate court or court of appeals)—An intermediate court

that hears appeals from trial courts.

 International Shoe Company v. State of Washington—A landmark U.S. Supreme Court

case that established the minimum contacts standard.

specialized or limited nature.

 Long-arm statute—A statute that extends a state’s jurisdiction to nonresidents who were

not served a summons within the state.

 Majority decision—A decision of the U.S. Supreme Court where a majority of the

justices agree as to the outcome and reasoning used to decide a case.

outcome.

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defendant located in another state.

 Rule of four—The votes of four justices are necessary to grant an appeal and schedule an

 Service of process—A summons is served on the defendant to obtain personal

jurisdiction over him or her.

jurisdiction.

 Standing to sue—The plaintiff must have some stake in the outcome of the lawsuit.

 State courts—A separate court system that is present in each state, Washington DC and

each territory of the United States. It includes limited-jurisdiction trial courts, general-

jurisdiction trial courts, intermediate appellate courts, and a supreme court.

located in Washington DC.

 Tie decision—A Supreme court decision where the number of votes cast by the justices

leads to a tie and the decision of the lower court is affirmed. It occurs when all nine

judges are not present.

 Unanimous decision—A Supreme court decision where all the justices voting agree as to

bankruptcy laws.

 U.S. Courts of Appeals—The federal court system’s intermediate appellate court.

 U.S. Court of Appeals for the Armed Forces—Special federal court that exercises

appellate jurisdiction over members of the armed services.

 U.S. Court of Appeals for the Federal Circuit—A court of appeals located in Washington

International Trade.

 U.S. Court of Appeals for Veterans Claims—Special federal court that exercises

jurisdiction over decisions of the Department of Veterans Affairs.

 U.S. Court of Federal Claims—Special federal court that hears cases brought against the

United States.

tariffs and international trade disputes.

 U.S. district courts—The federal court system’s trial courts of general jurisdiction.

Washington DC.

 U.S. Foreign Intelligence Surveillance Court of Review (FISCR)—A special federal

a FISA warrant.

 U.S. House of Representatives One of the two legislative bodies that make up the

Courts and Jurisdiction

national security.

 U.S. Tax Court—Special federal court that hears cases that involve federal tax laws.

 Venue—A concept that requires lawsuits to be heard by the court with jurisdiction that is

 Writ of certiorari—An official notice that the Supreme Court will review one’s case.