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Chapter 2: The Court System

Chapter 2: The Court System. Federal – 3 Branches. 3 Branches. Legislative branch: Created by Article I of the Constitution: Executive branch: Created under Article II of the Constitution Judiciary: Created by Article III of the Constitution. TN Courts. Federal Courts. TN Supreme

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Chapter 2: The Court System

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  1. Chapter 2: The Court System

  2. Federal – 3 Branches

  3. 3 Branches • Legislative branch: Created by Article I of the Constitution: • Executive branch: Created under Article II of the Constitution • Judiciary: Created by Article III of the Constitution

  4. TN Courts Federal Courts TN Supreme Court U.S. Supreme Court Court of Appeals 6th Circuit Courts of Appeals Criminal Court Trial Civil – Chancery/Circuit Civil General Sessions Criminal General Sessions U.S. District Court State and Federal Courts

  5. TENNESEE COURT SYSTEM • 1. Trial Courts – jurisdictions in Tennessee are divided by numbers. • 2. Tennessee Court of Appeals • 3. Tennessee Supreme Court • General Sessions and Trial Judges are elected for 8 year terms. • Appellate judges are appointed and then subject to a retention vote. This is called the “Tennessee Plan.”

  6. The Beginning Courts • Every Lawsuit begins in the trial court • You CANNOT start a lawsuit in the trial court.

  7. Trial Court – Rutherford County • Chancery – • Circuit – • General Sessions Civil – • General Session Criminal – • Juvenile – • Child Support –

  8. The Court of Appeals • Ct of Appeals, Appellate courts only REVIEW judge’s decision and make sure complies with law. • In a criminal case only the Defendant/Accused may appeal Legal Environment of Business

  9. STATE LAW- TN Ct of Appeals • 12 judges

  10. TN Supreme Court • Cornelia A. Clark Middle Division • Janice M. Holder Western Division • William C. Koch Middle Division • Sharon G. Lee Eastern Division • Gary R. Wade Eastern Division

  11. Federal Court • Article III Creates the Federal Courts • Judges -

  12. The Federal Court System • I. TRIAL - U.S. District Courts are the ‘Trial’ courts of the federal court system. • Eastern, Middle, Western • II. APPEALS – TN in the 6th Circuit • III. United States Supreme Court.

  13. The Federal Court of Appeals

  14. US Supreme Court – judges • All federal justices, including those on the Supreme Court, serve for life • US. SUPREME CT – How many judges • Hear a case • 3 women • AB GKK RSST Legal Environment of Business

  15. Jurisdiction

  16. 1. what state do you sue • 2. do you sue in federal or state court • 3. what particular federal or state court do you sue

  17. Basic Judicial Requirements • Jurisdiction: is the power of a court to hear a dispute and render a verdict that is legally binding on the parties to the dispute.

  18. The 3 types of jurisdiction • • Personal. A court must have jurisdiction over the Defendant – the party against whom the lawsuit is brought. • OR • • In Rem. Jurisdiction over the property involved in the lawsuit. • AND • • Subject Matter. Jurisdiction over the issue.

  19. Jurisdiction Over Persons • Persons: power of a court to compel the Defendant (including corporations) to appear in a particular court for litigation • Minimum Contacts -

  20. What is Minimum Contacts Defendant must have minimum contacts: Examples: 1. Committing a wrong within the state – car accident 2. Advertising/selling/putting a product into the stream of commerce in that state

  21. Why do you care • Where and how you conduct business could subject you to lawsuit in other states • Costs:

  22. Pg. 31 SGI v. IPC • Def corp-NJ Pl – NC • Def Does not advertise in NC • PL and Def have long standing bn r’ship • Pl sued in NC • Minimum contacts? – Def must have purposefully avail set of conducting activities in state • Look to quantity, nature contacts • Def would frequently ship products to Pl in NC

  23. Pg. 34 Case in Point • LA buyer bought RV from seller in TX on Ebay after viewing photo. • PL - Def- • PL picked up RV in TX but while in LA the RV broke down - Pl sued in LA • LA- Because Def had used eBay to market and sell the RV to a LA buyer and had regularly used eBay to sell cars to remote parties in the past.

  24. Jurisdiction Over Businesses Does the company do business or advertise within the state? minimum contacts

  25. Minimum Contacts through the Internet • active Website versus a passive Web presence • You go to consumers in other states vs. consumers finding you

  26. Example-Min Contact • I own a computer store in TN and I buy parts from Company B in California. Company B sells me fraudulent parts. Who is the Plaintiff and who is the Defendant Where does Plaintiff sue – TN or CA Does the Defendant have min contacts

  27. Basic Judicial Requirements • Jurisdiction in Cyberspace. • “Sliding Scale” Standard. • Three Different Types of Contacts: • (1) substantial business over the internet, • (2) some interactivity through a website, • (3) passive advertising.

  28. Mastondrea v. Occidental Hotels Management • Libgo Travel advertises in Newark, NJ paper for vacation packages at Royal Hotel in Mexico. • Pl booked package. Hurt at hotel

  29. What are options where sue • Where does Pl want to sue? Why? • What is the standard for PL to sue there?

  30. Patty lives in Florida and sells coins in Florida, parts of Michigan, New York, and Washington, D.C. While on a business trip in New York, Patty is run over by Drew, a citizen of New York. Patty brings suit against Drew in Florida for his injuries. • Does the Florida court have jurisdiction over Drew?

  31. Jurisdiction over Property • In Remjurisdiction is the power to decide issues relating to property. • A court generally has in rem jurisdiction over any property situated within its geographical borders

  32. 1. Is it federal or state court • 1. Does it involve federal law • 2. Are the parties from different states • 3. How much are you suing for

  33. Jurisdiction of Federal Courts • 1. Does case involve purely federal law. • 2. Diversity Jurisdiction - • The parties are not from the same state, and • interstate commerce • minimum contacts. • (The amount in controversy is greater than $75,000.) • Sometimes both Federal and State.

  34. 1. PurelyFederal Law – Bankruptcy – Congress determined that bankruptcies are best addressed in a standardized manner across US so federal courts. 2. Diversity of Citizenship. • Parties are not from same state, and amount in controversy must exceed $75,000.

  35. Why - Diversity Jurisdiction • The US Constitution gives federal courts the power to hear diversity cases. The framers of the Constitution were concerned that when a case is filed in one state, and it involves parties from that state and another state, the state court might be biased toward the party from that state

  36. Jurisdiction Over Persons • Civil - Parties are from diff states – Federal • Criminal – does act cross state lines • SO WHICH STATE? • MC - Placing goods into stream of commerce with intent to be sold – interstate commerce – cross state lines

  37. Exclusive vs. Concurrent Jurisdiction • Exclusive: only one court (state or federal) has the power (jurisdiction) to hear the case. • Concurrent: more than one court can hear the case.

  38. Venue location for the lawsuit/trial Generally, proper venue is whether the injury occurred.

  39. Venue – In state- what county • What county the lawsuit should be brought. • Jane lives in Wilson County and has car wreck in Rutherford County • Jane lives in Wilson County and has work related injury Rutherford County.

  40. Venue – in federal – what section • What district - Middle or Eastern or Western US District Court.

  41. Standing to Sue • Must have: • Standing is sufficient party must have suffered a legal harm • Ex:

  42. Damage • Must have damages: Ex:

  43. The Lawsuit – a Complaint Plaintiff prepared a lawsuit called a complaint Must prove Service of process: What is that?

  44. LAWSUIT Complaint If Individual- Must serve Defendant with lawsuit – personally or leave at home/office If Business – when you register with state to do business, have to list who gets the lawsuit. Called registered agent– they have companies that all they do is accept lawsuit. Legal Environment of Business

  45. Criminal • In a Criminal Case • The State is the Plaintiff The accused is the Defendant

  46. TRIAL • Bench Trial – what is that • Jury -

  47. The Trial • Jury Trial General process • Voir Dire • Opening Statements • PL Direct/Cross Examination • Def Direct/Cross Examination • Closing Statements • Jury instructions • Jury Deliberations

  48. Burden of Proof • Jury: • Criminal • Civil

  49. Appeals • If you do not believe judge or jury made right decision, you can appeal it. • Appeals court JUST reviews – not a new trial

  50. Enforcing the Judgment What if the jury awards the full amount of damages of $100,000? How will she collect it?

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