Chapter 2: The Resolution of Private Disputes
I. Jurisdiction
A. Definition: A court’s power to hear a case and issue a decision binding on the parties
B. Two Types
1. Subject-matter jurisdiction
a. Power to decide the type of dispute
b. Different types include:
i. Constitutional issues
ii. Statutory issues
iii. A case concerning parties from different states
2. In personam and In rem jurisdiction
a. In Personam jurisdiction
i. Power over the particular parties
ii. Based on the residence, location, or activities of the defendant
b. In Rem jurisdiction: based on the location of the property that is the subject of the suit
II. Court Systems: the United States has 52 court systems
A. Federal Courts = 1 system
1. District Courts
a. Lowest federal court
b. Many bases of jurisdiction, including
i. Diversity
a) Suit is between citizens of different states
b) Amount in controversy exceeds $75,000
ii. Federal question
a) Case arises under the Constitution, laws, or treaties of the U.S.
b) No amount in controversy requirement
2. Specialized federal courts
a. Court of Federal Claims
b. Court of International Trade
c. Bankruptcy Courts
d. Tax Court
3. Federal Courts of Appeals
a. Intermediate federal courts
b. Hear appeals from decisions of the federal district courts
c. Do not find facts
d. Review only legal questions reached by lower federal courts
4. Supreme Court
a. Highest court in the U.S.
b. Mainly an appellate court
c. Mostly handles appeals from the federal courts of appeals and the highest state courts
d. Under the writ of certiorari, the Court has discretion over whether to hear a particular case
B. State Courts (including a system for the District of Columbia) = 51 systems
1. Courts of Limited Jurisdiction
a. Hear minor criminal cases and civil disputes involving small amounts of money or specialized matters
b. Examples
i. Traffic Courts
ii. Probate Courts
iii. Small Claims Courts
2. Trial Courts
a. Find relevant facts in a particular case
b. Identify the appropriate rules of law
c. Combine both of the above to reach a decision
d. Fact-finding function may be handled by a judge or jury
3. Appellate Courts
a. Hear appeals from the trial courts
b. Generally, only decide legal questions
c. Do not have a jury, and their judges do not find the facts
d. Also may hear appeals from state administrative decisions
III. Civil Procedure: a set of legal rules governing the conduct of a trial court case between private parties
A. To win a civil case, the plaintiff must prove each element of his claim by a preponderance of the evidence
B. Stages and Motions in Civil Cases
1. Summons: notifies the Defendant that he is being sued
2. Pleadings: documents the parties file with the court when they first state their cases
a. Complaint: states the Plaintiff’s claim
b. Answer:
i. Defendant’s response to the Complaint, admitting or denying the allegations
ii. May also include an affirmative defense
c. Reply: some jurisdictions allow (or require) the Plaintiff to respondent to an affirmative defense or counterclaim
3. Motion to Dismiss: a motion by the Defending asserting that the Plaintiff has case; if successful, Defendant wins
4. Discovery: allows the parties to get facts and narrow and clarify the issues for trial via depositions, interrogatories, requests for admission, etc.
5. Summary Judgment: device for disposing of relatively clear cases without a trial if
a. There is no genuine issue of material fact; and
b. The party is entitled to judgment as a matter of law
6. Pretrial Conference: the judge meets informally with the attorneys, and may try to get the attorneys to narrow the issues for trial or settle
7. Trial: adversary process occurring before a judge or jury
8. Appeal: hearing by a higher court to determine whether the lower court committed an error of law
IV. Alternative Dispute Resolution
A. Devices, other than lawsuits, for resolving civil disputes
B. Benefits
1. Quicker resolution
2. Lower costs
3. Use of decisionmakers with specialized expertise
4. Potential for compromise that reflects a consensus by both parties
C. Common Forms
1. Settlements: contracts where the Defendant agrees to pay the Plaintiff a sum of money in exchange for the Plaintiff’s promise to release the Defendant from liability
2. Arbitration: the submission of a dispute to a neutral, nonjudicial third party who issues a binding decision to resolve the dispute
3. Court-Annexed Arbitration: arbitration where the losing party still has the right to a regular trial
4. Mediation: a neutral third party helps the parties reach a shared resolution of their dispute by aiding the parties in communication, clarifying areas of agreement and disagreement, pointing out the other’s viewpoint, and suggesting settlement options
5. Summary Jury Trial: an abbreviated, nonpublic mock jury trial that does not bind the parties to better reveal the merits of the parties’ cases
6. Minitrial: informal, abbreviated private “trial” to promote the settlement of disputes