Chapter 2: The Court System and Dispute Resolution › Outline

Outline

A. THE COURT SYSTEM

A court is a tribunal established by a government to decide controversies,

provide a remedy for persons who have been wronged, punish
wrongdoers, and prevent wrongs.

1. THE TYPES OF COURTS

General Rules
• Jurisdiction is the power to hear and decide cases. • Courts have
subject matter jurisdiction to decide only certain types of cases
(lawsuits). • Courts may have:

a. Original or Appellate Jurisdiction: Original jurisdiction is

the power to decide cases for the first time. A court of
original jurisdiction is the trial court, where witnesses actually
testify, documents are admitted into evidence, and the jury
(in the case of a jury trial,) is present to hear all the evidence
and to make a decision. Appellate jurisdiction is the power to
review decisions of lower courts to determine if a lower court
made a reversible error. Typically, appellate courts make
decisions based upon review of the trial transcript (verbatim,
written documentation of trial court proceedings,) review of
written briefs submitted by the appellant and appellee
(written arguments supported by law,) and oral arguments
presented by the appellant and appellee.

b. General or Limited Jurisdiction: General jurisdiction is the

power to decide most types of cases, whereas limited
jurisdiction is the power to decide only certain types of
cases. • Example: "Small claims" courts are courts of limited
jurisdiction, with the power to hear only cases of relatively
minimal monetary value, such as $10,000 or less.

c. Criminal or Civil Jurisdiction: Criminal courts can decide

cases involving crimes, whereas civil courts can decide
cases involving private wrongs and other civil disputes.

Study Hints
• Courts with original jurisdiction are trial courts, and they render the
 initial judgment in civil and criminal cases. • A reversible error
usually occurs when a lower court: (1) applies the wrong law in
resolving the case; or (2) incorrectly interprets or applies the law in
resolving a case.

2. THE FEDERAL COURT SYSTEM

The federal court system consists of the following three levels of

courts:

a. Federal District Courts: • Federal district courts have

original jurisdiction to decide most cases filed in federal court
including: (1) civil suits in which the U.S. is a party; (2)
actions involving any federal law, such as the United States
Constitution, federal statutes or administrative rules, or U.S.
treaties; and (3) cases between parties who are residents of
different states ("diversity of citizenship") if $75,000 or more
is involved. • Other federal courts with limited jurisdiction
include U.S. Bankruptcy Court, Tax Court, the U.S. Court of
International Trade, and the Court of Federal Claims.

b. U.S. Courts of Appeals: • U.S. courts of appeals have only

appellate jurisdiction. • These courts review judgments of
federal district courts in their respective circuits. The decision
of a U.S. court of appeals is final unless the Supreme Court
chooses to hear an appeal of the case.

c. U.S. Supreme Court: • The Supreme Court is the highest

federal court. • The Supreme Court has original jurisdiction
over cases involving ambassadors, public ministers or
consuls, and for cases in which two states are involved. •
The Supreme Court has appellate jurisdiction over all cases
brought in federal court and certain cases appealed from
state supreme courts. Through the process of granting a writ
of certiorari, the Court has the discretion to decide whether
to hear an appeal.

3. STATE COURT SYSTEMS

The typical state court system consists of the following types of

courts:

a. General Trial Courts: Most states have trial courts with

general jurisdiction of criminal/civil cases.
 b. Specialty Courts: States may have courts with limited
jurisdiction, such as juvenile courts, probate courts, and
family law courts.

c. City, Municipal and Justice Courts: Cities and counties

may also have courts.

d. Small Claims Courts: Most states have small claims courts

that hear small civil cases.

e. State Appellate Courts: These state courts hear appeals

from state general trial courts.

f. State Supreme Court: The highest court in most states is

called the state supreme court, which generally has
appellate jurisdiction. The decision of a state supreme court
is typically final unless it involves a federal law, treaty, or the
U.S. Constitution.

C. COURT PROCEDURE

2. PARTICIPANTS IN THE COURT SYSTEM

• The plaintiff is the party who commences a civil lawsuit, and the
prosecutor is the party who brings a criminal case on behalf of the
government. The defendant is the party against whom a civil or
criminal suit is brought. • The judge is the primary court officer, and
the jury is a body of citizens who are appointed by a court to decide
the facts and render a verdict in a case.

3. WHICH LAW APPLIES - CONFLICTS OF LAW

• Conflict of laws is the principle that determines whether a court

should apply the law of its own state or the law of another
jurisdiction. • If contracting parties do not state which law controls,
then the trend is that the state law that has the most significant
contacts with the transaction governs a contract.

4. INITIAL STEPS IN A LAWSUIT

A civil lawsuit typically involves the following beginning steps:

a. Filing a complaint, a pleading that describes the wrongful

conduct allegedly committed by the defendant, and requests
relief such as money damages.
 b. The defendant must be served with process, which notifies
the defendant of the lawsuit, and requires the defendant to
appear and respond to the allegations of the complaint.

c. The defendant must file an appropriate response, which may

be: an answer (a response to the allegations stated in the
complaint;) a counterclaim (the defendant's claim for relief
against the plaintiff), or other preliminary motions.

Answer is the pleading stating a defendant's response to a

plaintiff's complaint.

d. • Discovery is "a fact-finding mission," the process by which

either party can find out from the other party most
information relating to a lawsuit. • Types of discovery
include: a deposition (the taking of testimony of a witness or
party outside of court; interrogatories (written questions
served on a party); and written requests for production of
documents (a discovery tool for uncovering paper evidence
in a case.)

e. A party may request a summary judgment if there are no

important factual issues disputed by the parties in the case,
and the requesting party is entitled to judgment as a matter
of law.

f. If a case goes to trial, the parties will typically designate

whom they intend to call as an expert witness, meaning a
witness who has a certain expertise and who will give his or
her expert opinion at trial.

4. THE TRIAL

a. Selecting a Jury. When there is a jury trial, the first step is

selection of the jury. Jurors are selected from a jury pool
through the process of voir dire, which is an examination
conducted by the trail attorneys to decide if prospective
jurors are biased in favor of either party, and whether they
are otherwise suitable to be jurors.

b. Opening Statements, Presentation of Evidence, Motion

for Directed Verdict, and Summation. Opening statements
are statements by opposing attorneys that tell the jury what
their cases will prove. Presentation of evidence involves the
introduction of documents, witness testimony, and physical
evidence. Attorneys ask witnesses questions through the
process of direct examination, cross-examination, redirect
 examination, and re-cross examination. The presiding judge
rules on the admissibility of evidence and the propriety of
witness questioning. A motion for directed verdict is a
request that the trial judge render a verdict in favor of the
moving party. Through summation (also known as "closing
statements,") the attorneys summarize the case, and
suggest that a particular verdict be returned by the jury.

c. Jury Instructions and Verdict. After the parties'

summation, the court gives the jurors instructions on the law
to apply in rendering its verdict. Once the jury gives its
verdict, the court typically enters a judgment that conforms to
the verdict. If the jury is deadlocked and cannot reach a
verdict, the court will declare a mistrial, thereby dismissing
the case, which may then be brought again.

d. Motion for Mistrial; Motion for New Trial; Motion for

Judgment N.O.V. In order to avoid great injustice, the trial
court may declare a mistrial. Judicial declaration of a mistrial
terminates the trial, and requires that it start over with a new
jury. A mistrial is commonly declared when evidence
introduced at trial has been of a highly prejudicial character,
or when a juror or attorney has been guilty of misconduct. A
motion for a new trial is a request for a new trial, made by
the moving party when there has been an error of law and/or
an abuse of discretion by court personnel during the conduct
of the trial. A judgment n.o.v., or "judgment notwithstanding
the verdict," is a judgment entered after the jury verdict, upon
motion of the losing party, on the ground that the verdict is
so wrong that a judgment should be entered in place of the
jury verdict. Motions for new trial and motions for judgment
n.o.v. are rarely granted.

5. POSTTRIAL PROCEDURES

a. Recovery of Costs/Attorney Fees. Generally, the winning

party is awarded certain costs incurred in a civil lawsuit. A
party may recover attorney fees if recovery is authorized by
statute or a contract authorizes such recovery.

b. Execution of Judgment. If a party fails to pay a judgment,

the judgment may be collected by a sheriff selling the losing
party's nonexempt property pursuant to a writ of execution,
or by the winning party obtaining wages or debts owed to the
losing party pursuant to a writ of garnishment.
 Garnishment is the procedure to enforce money judgment by
which the winning party may obtain wages or debts that are owed
by a third person or employer to the losing party.

C. ALTERNATIVE DISPUTE RESOLUTION (ADR)

2. ARBITRATION

General Rules
Arbitration is typically a voluntary process by which parties agree to
submit a dispute to disinterested persons called "arbitrators." • The
parties' agreement determines whether a particular dispute must be
submitted to arbitration. • The arbitrator's decision generally is final,
i.e., it is legally binding on the parties. • The decision can be set
aside by a court only if it is the result of fraud, arbitrary (grossly
unreasonable) conduct by the arbitrator, or serious procedural
mistakes.

Limitation
Laws may require mandatory arbitration of some disputes. In this
situation, the decision can be appealed and a party is entitled to a
new trial (trial de novo).

3. MEDIATION

Mediation is a process whereby a neutral party (mediator) delivers

settlement proposals from one party to the second party, and the
mediator may also make suggestions for settlement of the dispute.
The mediator's suggestions are not legally binding on the parties.

4. MED ARB

This new form of ADR allows an arbitrator to also act as a mediator

in the same matter.

5. REFERENCE TO A THIRD PERSON

Parties may voluntarily refer determination of a fact, such as the

value of a fire loss, to an impartial third party or committee. The
parties usually agree that the decision will be final.

6. ASSOCIATION TRIBUNALS

An association tribunal is a panel that resolves disputes between

association members or between an association member and a
consumer. The decision binds the association member, not the
consumer.
 7. SUMMARY JURY TRIAL

A summary jury trial is a pretend trial that is held before a mock

jury; the decision is not binding.

8. RENT-A-JUDGE

Parties may hire a judge to try a case; the decision is binding

unless reversed on appeal.

9. MINITRIAL

Parties submit a disputed issue to a person, such as a retired

judge, for determination.

10. JUDICIAL TRIAGE

Courts may examine cases from a time perspective, first hearing

those cases that must not be delayed.

11. CONTRACT PROVISIONS

Contracts often require that parties use one of the foregoing

procedures.

12. DISPOSITION OF COMPLAINTS AND OMBUDSMEN

An ombudsman receives complaints and makes recommendations

for improvement. An ombudsman reviews, but does not legally
decide, complaints.

Complaint is the pleading stating a plaintiff's claim against a defendant

and the plaintiff's demand for relief.

COPYRIGHT © 2008 by Thomson South-Western.