THE COURT SYSTEMTHE COURT SYSTEM

Chapter 2Chapter 2

Chapter IssuesChapter Issues

• Overview of the American court Overview of the American court systemsystem

• How an injured party can seek relief How an injured party can seek relief in the courtsin the courts

• Jurisdiction: Which court has the Jurisdiction: Which court has the power and the authority to decide power and the authority to decide the case?the case?

The Federal Court SystemThe Federal Court System

• Federal District Court Federal District Court – Courts of original

jurisdiction – Use juries or judge as “trier

of fact”– Trial courts deal in issues of

fact• U.S. Court of Appeals U.S. Court of Appeals

– 12 courts– Usual rule: There is the right

to appeal to this court– 3 judge panels deal in issues

of law

• Specialized Federal CourtsSpecialized Federal Courts

– Limited jurisdiction

– I.e. Court of Appeals for the Federal Circuit--takes appeals from

• U.S. District Court in patent, trademark and copyright cases

• U.S. Claims Court

• U.S. Court of International Trade

• Administrative rules of U.S. Patent & Trademark Office

The Federal Court System The U.S. Supreme CourtThe U.S. Supreme Court

• Highest court in the countryHighest court in the country• Appellate review court—selects which cases to hearAppellate review court—selects which cases to hear• Cases usually heard by 9 justicesCases usually heard by 9 justices• Term begins First Monday in October in Washington, Term begins First Monday in October in Washington,

D.C.D.C.• Reviews cases fromReviews cases from

– U.S. District CourtsU.S. District Courts– U.S. Courts of AppealsU.S. Courts of Appeals– Highest Courts of the StatesHighest Courts of the States

• Review is through Review is through Writ of CertiorariWrit of Certiorari– If writ not granted, lower court decision is finalIf writ not granted, lower court decision is final

The Typical State Court System – Very similar to Fed. System

• State court of “original jurisdiction”State court of “original jurisdiction”– Where case is first brought; deals in issues of factWhere case is first brought; deals in issues of fact– Usually called District Court (but in NY, is called the Usually called District Court (but in NY, is called the

“Supreme Court”)“Supreme Court”)• State court of appeals State court of appeals

– Deals with appeals and issues of lawDeals with appeals and issues of law– Usually called Court of AppealsUsually called Court of Appeals

• State Supreme Court State Supreme Court – Second appellate review dealing with issues of lawSecond appellate review dealing with issues of law– Usually called Supreme Court (but in NY, is called Usually called Supreme Court (but in NY, is called

“Court of Appeals”) If case involves a federal issue, it “Court of Appeals”) If case involves a federal issue, it can be appealed to the U.S. Supreme Court.can be appealed to the U.S. Supreme Court.

Special Jurisdiction Cts.Special Jurisdiction Cts. – County, small claims, criminal, – County, small claims, criminal, probate, juvenile.probate, juvenile.

JurisdictionJurisdiction

• JurisdictionJurisdiction: Right of a : Right of a court to hear & decide court to hear & decide the casethe case

• More than one court may More than one court may have jurisdiction over a have jurisdiction over a given casegiven case

• Need jurisdiction over Need jurisdiction over thethe subject matter subject matter

• Need jurisdiction over Need jurisdiction over either either persons or propertypersons or property

• If jurisdiction is lacking, If jurisdiction is lacking, judgment is null & voidjudgment is null & void

Subject Matter JurisdictionSubject Matter JurisdictionState CourtsState Courts

• A particular court resolves a particular subject matter, i.e.A particular court resolves a particular subject matter, i.e.– Wills & Trusts: Probate CourtWills & Trusts: Probate Court– Divorces, Child Custody: Domestic CourtDivorces, Child Custody: Domestic Court– Municipal Matters: Municipal CourtMunicipal Matters: Municipal Court– Limited claims of usually $5000 or less: Small Claims CourtLimited claims of usually $5000 or less: Small Claims Court

• If there is not a particular subject matter, case first goes to general If there is not a particular subject matter, case first goes to general trial courttrial court

• Courts of Courts of original jurisdictionoriginal jurisdiction--where case is first brought--where case is first brought• Courts of Courts of appellate jurisdiction--appellate jurisdiction--where lower court decisions are where lower court decisions are

reviewedreviewed• If there is If there is no juryno jury, judge decides the facts, judge decides the facts• General right to appeal to at least General right to appeal to at least one one higher courthigher court

Subject Matter JurisdictionSubject Matter JurisdictionFederal CourtsFederal Courts

• Federal court jurisdiction is derived from the U.S. Constitution

• Federal courts may hear cases involving :

• Cases in which the U.S. is a party to the suit;Cases in which the U.S. is a party to the suit;• Cases involving a federal question (law);Cases involving a federal question (law);

No $ amount for cases involving federal lawNo $ amount for cases involving federal law

• Cases involving citizens of different statesCases involving citizens of different states• Diversity of citizenship Diversity of citizenship jurisdictionjurisdiction

• Amount in ControversyAmount in Controversy is for more than $75,000 is for more than $75,000

Jurisdiction over the PersonJurisdiction over the Person In Personam JurisdictionIn Personam Jurisdiction

• Over the person, usually Over the person, usually throughthrough

– Residency (physical Residency (physical presence in state)presence in state)

– Doing business in the stateDoing business in the state

– Submission to the Submission to the jurisdictionjurisdiction

– See “The ‘Long Arm’ of See “The ‘Long Arm’ of the Law “the Law “

– SummonsSummons through through service service of process of process or or substituted substituted serviceservice

• Out of state defendantsOut of state defendants– Jurisdiction is more Jurisdiction is more

difficultdifficult– Serve them while in the Serve them while in the

statestate– May not “trick” them to May not “trick” them to

get into the state for get into the state for service of processservice of process

– Long-arm statutesLong-arm statutes• See Exhibit 2.4See Exhibit 2.4• Aimed usually at Aimed usually at

nonresident businessesnonresident businesses

State of Oregon v. Lillard State of Oregon v. Lillard ( (Personal Jurisdiction through Personal Jurisdiction through Minimum Contacts-Long-Arm)Minimum Contacts-Long-Arm)

• Killum (mother is Lillard) of Killum (mother is Lillard) of CaliforniaCalifornia was recruited for was recruited for basketball by Oregon State basketball by Oregon State (OSU) in 1990(OSU) in 1990

• In summer of 1991, he In summer of 1991, he suffered a stroke when playing suffered a stroke when playing with friends; was given with friends; was given anticoagulants & told to avoid anticoagulants & told to avoid physically demanding physically demanding activitiesactivities

• In September 1991 OSU In September 1991 OSU athletic trainer & athletic athletic trainer & athletic director assured Lillard that director assured Lillard that son would receive medical son would receive medical attentionattention

• December 1991 OSU doctors December 1991 OSU doctors reduced anticoagulants; reduced anticoagulants; Killum begins to playKillum begins to play

• January 1992 Killum travels January 1992 Killum travels to UCLA & USC; suffers to UCLA & USC; suffers stroke and diesstroke and dies

• Lillard brings wrongful death Lillard brings wrongful death suit in suit in California California

• State of Oregon argues: lack State of Oregon argues: lack of personal jurisdiction in CAof personal jurisdiction in CA

• Trial court rules against Trial court rules against State; it appealsState; it appeals

• Held: Minimum contacts Held: Minimum contacts through recruiting in CAthrough recruiting in CA

Concurrent JurisdictionConcurrent Jurisdiction• Federal and state courts Federal and state courts

have have exclusive jurisdictionexclusive jurisdiction over some matters; howeverover some matters; however

• Sometimes both state & Sometimes both state & federal courts have federal courts have jurisdiction (diversity)jurisdiction (diversity)

• Plaintiff may bring suit in Plaintiff may bring suit in either court systemeither court system

• If plaintiff chooses state If plaintiff chooses state court, defendant has right court, defendant has right to remove to federal court to remove to federal court (right of (right of removalremoval), but ), but not not visa versavisa versa

Jurisdiction Based on Power Jurisdiction Based on Power Over PropertyOver Property

• In rem jurisdictionIn rem jurisdiction– The dispute between the parties is over propertyThe dispute between the parties is over property– Where property is located creates jurisdictionWhere property is located creates jurisdiction– Whether the defendant-property owner is within the jurisdiction Whether the defendant-property owner is within the jurisdiction

does not matterdoes not matter– Tangible property creates Tangible property creates in rem in rem jurisdiction--i.e. real estate, jurisdiction--i.e. real estate,

personal propertypersonal property– Intangible property creates Intangible property creates in remin rem--i.e. bank accounts, stocks--i.e. bank accounts, stocks– If property is removed to another state, no If property is removed to another state, no in remin rem jurisdiction jurisdiction

• Quasi in rem jurisdiction (IGNORE)Quasi in rem jurisdiction (IGNORE)– Defendant’s property is attached to pay for unrelated matterDefendant’s property is attached to pay for unrelated matter– Ownership of property within the state is basis of jurisdictionOwnership of property within the state is basis of jurisdiction– Decision in Decision in quasi in remquasi in rem binds the parties themselves binds the parties themselves

VenueVenue

• VenueVenue: Appropriate : Appropriate geographicalgeographical location location of the court that has of the court that has jurisdictionjurisdiction

• In controversial or In controversial or well-publicized cases, well-publicized cases, defendants will ask defendants will ask for for change of venuechange of venue

• DoctrineDoctrine of forum non of forum non conveniensconveniens: : Either party Either party may request a change of may request a change of venue to a more venue to a more convenient court that convenient court that could hear the case. could hear the case. Court will consider such Court will consider such issues as issues as – Where actions of case take Where actions of case take

placeplace– Where witnesses are Where witnesses are

locatedlocated– Unfair burdens to partiesUnfair burdens to parties

Judicial Officials

• Federal Judges Federal Judges

– President nominatesPresident nominates

– Confirmed by U.S. Senate Confirmed by U.S. Senate majority votemajority vote

– Removed from office Removed from office onlyonly if Congress impeaches if Congress impeaches themthem

– About 1200 federal judgesAbout 1200 federal judges

– Selection process wants to Selection process wants to guarantee that judges are guarantee that judges are nonpartisannonpartisan

• State Judicial OfficialsState Judicial Officials– Chosen by variety of Chosen by variety of

methods methods – Elected, appointed or Elected, appointed or

mix of both processesmix of both processes– Most serve a fixed Most serve a fixed

term, which ranges term, which ranges from 1-14 years + from 1-14 years + more in some statesmore in some states

• Justices must apply law Justices must apply law evenly/consistentlyevenly/consistently

State Judges and the State Judges and the Doctrine of Doctrine of Judicial ImmunityJudicial Immunity

• State Judicial Officials– Judges chosen by variety of

methods– Unlike federal court, most

state judges serve fixed terms.

– State supreme court judges are appointed in 9 states; elected in 21 states;elected by the legislature in 3 states and initially appointed in 17 states, then run for retention.

• Judicial Immunity– A judge is absolutely immune

from suit for damages for judicial acts taken within his/her jurisdiction.

– Applies even in action is excessive or malicious

– Purpose: to protect judges from retaliatory suits against them

– Purpose: To protect the system from undue influence on judicial decision-making

Applying Appropriate Law in Federal Applying Appropriate Law in Federal CourtCourt

• Issue: When there is diversity of citizenship, which substantive law should the federal court apply?

• Ex: Smith & Jones have contract dispute; Smith is from Arizona; Jones from California. Which law applies?

• See Erie v. TompkinsSee Erie v. Tompkins

End of Chapter 2

Applying Appropriate Law in State Applying Appropriate Law in State CourtCourt

• Incidents of the case take place in Incidents of the case take place in more than one statemore than one state

• Conflict of lawsConflict of laws rules apply rules apply

• Rules vary according to nature of Rules vary according to nature of dispute, i.e.dispute, i.e.– Contract cases: Laws of state in

which contract was made will be applied

– Tort cases: Laws of state where tort takes place

– States try to look at interests of the parties, gov’t, policies

• General rule: Laws apply for state General rule: Laws apply for state that has with most “significant that has with most “significant interest” interest”

• See Hughes v. Wal-Mart StoresSee Hughes v. Wal-Mart Stores

Cyberlaw: The Long Arm of the Internet

• When does a web site advertiser in nationwide sales become When does a web site advertiser in nationwide sales become subject to another state’s jurisdiction?subject to another state’s jurisdiction?

• Generally personal jurisdiction occurs when defendant is Generally personal jurisdiction occurs when defendant is engaged in”continuous business” in a state.engaged in”continuous business” in a state.

• No jurisdiction if contact with a forum is “only No jurisdiction if contact with a forum is “only informational” (informational” (GTE v. Bellsouth ,GTE v. Bellsouth , 2000) 2000)

• No jurisdiction if web site gives information about sales, No jurisdiction if web site gives information about sales, allows customers to download forms and provides email allows customers to download forms and provides email address for inquiries address for inquiries (Mink. V. AAAA Devel. LLC, (Mink. V. AAAA Devel. LLC, 1999)1999)

• Unclear area re: how much sale activity needed.Unclear area re: how much sale activity needed.– Ex: One low cost item is not “active business”, esp. if buyer initiates the Ex: One low cost item is not “active business”, esp. if buyer initiates the

contact.contact.

The “Long Arm” of the LawThe “Long Arm” of the Law

• Dr. Alvarez citizen of MexicoDr. Alvarez citizen of Mexico• U.S. Drug Enforcement Agency (DEA) believes he U.S. Drug Enforcement Agency (DEA) believes he

tortured & murdered an agenttortured & murdered an agent• Alvarez is kidnapped from Mexico with knowledge of Alvarez is kidnapped from Mexico with knowledge of

DEA & taken to El Paso, TX & is arrestedDEA & taken to El Paso, TX & is arrested• Alvarez says that U.S./Mexico Extradition Treaty is Alvarez says that U.S./Mexico Extradition Treaty is

violatedviolated• Trial court dismisses the case; Alvarez returns to MexicoTrial court dismisses the case; Alvarez returns to Mexico• Supreme Court reversesSupreme Court reverses• Alvarez is forced to stand trial under U.S. criminal lawAlvarez is forced to stand trial under U.S. criminal law

The Litigation ProcessThe Litigation Process

• Civil Litigation: Process to Civil Litigation: Process to resolve disputes resolve disputes

• Civil ProcedureCivil Procedure

– Plaintiff--claims damages Plaintiff--claims damages before courtbefore court

– Defendant--defends Defendant--defends against plaintiffagainst plaintiff

– States develop own States develop own procedural rulesprocedural rules

• Often similar to Federal Often similar to Federal Rules of Civil ProcedureRules of Civil Procedure

Territorial JurisdictionTerritorial Jurisdiction “Minimum Contacts” “Minimum Contacts”

• ““Transacting business” within the stateTransacting business” within the state• Landmark case--Landmark case--International Shoe Company v. International Shoe Company v.

Washington ( Supreme Court, 1945)Washington ( Supreme Court, 1945)• Legal contact--legal “nexus”Legal contact--legal “nexus”• Examples of “minimum contacts” within a state:Examples of “minimum contacts” within a state:

– Sales officeSales office– Sales representative(s)Sales representative(s)– Selling productSelling product– AdvertisingAdvertising– Placing product in specific marketsPlacing product in specific markets

• See See State of Oregon v. LillardState of Oregon v. Lillard

Erie RR Co. v. Tompkins, 1938 Which Law Applies?Which Law Applies?

• Protruding object from train Protruding object from train injures Tompkinsinjures Tompkins

• Tompkins--PA citizenTompkins--PA citizen• Erie--incorporated in NY Erie--incorporated in NY • Accident--in PAAccident--in PA• If federal common law applies: If federal common law applies:

Erie is liableErie is liable• If PA common law: Tompkins If PA common law: Tompkins

trespassed & Erie is not liabletrespassed & Erie is not liable• Held: Concept of federal Held: Concept of federal

common law in diversity of common law in diversity of citizenship cases is ended. PA citizenship cases is ended. PA law applies. Tompkins is a law applies. Tompkins is a trespasser; Erie not liable.trespasser; Erie not liable.

Hughes v. Wal-Mart Stores, Inc. (8th Circuit, 2001)

• Hughes buys Rubbermaid gasoline container at Wal-Mart in Louisiana.• He pours diesel fuel onto stumps to burn; the fuel in the container explodes;

his daughter is injured standing 40 feet away.• He sues Wal-Mart for product defect in Federal District Court and wants

Arkansas (where Wal-Mart is headquartered) law to apply.• If LA law applies, distributor is not liable unless it knew of defect.• If AR law applies, an injured party has greater chance of recovery.• District Ct. applied LA law, precluding recovery. Hughes appeals.• HELD: Louisiana law applies. Judgment is affirmed.• The court looked at factors for conflict of laws application .• Louisiana has the most significant contacts to the litigation.• Container was purchased in Louisiana by a resident of the state and the

injured party is a Louisiana resident as well.• The only “contact” with Arkansas is it is the principle place of business of Wal-

Mart.

Technology’s Impact: On-Line Technology’s Impact: On-Line Availability of Legal DocumentsAvailability of Legal Documents

“Curbs Debated As Court Records Go “Curbs Debated As Court Records Go Public on Net”Public on Net”

• Article expresses concerns that court documents, once in Article expresses concerns that court documents, once in “practical obscurity”, are now on the Web in a “treasure “practical obscurity”, are now on the Web in a “treasure trove” of informationtrove” of information

• Social security, bank, credit card numbers, account Social security, bank, credit card numbers, account balances, names and ages of children, medical and balances, names and ages of children, medical and psychiatric records, tax returns, etc: All Accessible!psychiatric records, tax returns, etc: All Accessible!

• Privacy advocates warn of use for customer databases, Privacy advocates warn of use for customer databases, for embarrassment, by criminals, and other purposes.for embarrassment, by criminals, and other purposes.

• Others say, “If it’s sensitive, ask judge to seal it.”Others say, “If it’s sensitive, ask judge to seal it.”• Courts are grappling with the impact of technology on Courts are grappling with the impact of technology on

obtainable legal information.obtainable legal information.