Copyright © 2004 by Prentice-Hall. All rights reserved. PowerPoint Slides to Accompany BUSINESS LAW E-Commerce and Digital Law International Law and Ethics 5 th Edition by Henry R. Cheeseman Slides developed by Les Wiletzky Wiletzky and Associates, Puyallup, WA Chapter 2 Judicial and Alternative Dispute Resolution Chapter 2 Judicial and Alternative Dispute Resolution

2 - 2Copyright © 2004 by Prentice-Hall. All rights reserved. There are two major court systems in the U.S.: 1. The federal court system 2. The court systems of the 50 states and the District of Columbia Each of these systems has jurisdiction to hear different types of lawsuits. Each of these systems has jurisdiction to hear different types of lawsuits. Litigation – the process of bringing, maintaining, and defending a lawsuit. Litigation – the process of bringing, maintaining, and defending a lawsuit.

2 - 3Copyright © 2004 by Prentice-Hall. All rights reserved. The State Court Systems Limited- Jurisdiction Trial Courts General- Jurisdiction Trial Courts Intermediate Appellate Courts Supreme Court

2 - 4Copyright © 2004 by Prentice-Hall. All rights reserved. The State Court Systems (continued)  Traffic courts  Juvenile courts  Justice-of-the-peace courts  Probate courts  Traffic courts  Juvenile courts  Justice-of-the-peace courts  Probate courts  Family law courts  Small claims courts  Courts that hear misdemeanor criminal law cases and civil lawsuits under a certain dollar amount  Family law courts  Small claims courts  Courts that hear misdemeanor criminal law cases and civil lawsuits under a certain dollar amount  Limited – Jurisdiction Trial Court Hears matters of a specialized or limited nature Hears matters of a specialized or limited nature

2 - 5Copyright © 2004 by Prentice-Hall. All rights reserved. The State Court Systems (continued)  General – Jurisdiction Trial Court Hears cases of a general nature that are not within the jurisdiction of limited-jurisdiction courts Hears cases of a general nature that are not within the jurisdiction of limited-jurisdiction courts Testimony and evidence at trial are recorded and stored for future reference Testimony and evidence at trial are recorded and stored for future reference

2 - 6Copyright © 2004 by Prentice-Hall. All rights reserved. The State Court Systems (continued)  Intermediate Appellate Court An intermediate court that hears appeals from trial courts An intermediate court that hears appeals from trial courts Reviews the trial court record to determine if there have been any errors at trial that would require reversal or modification of the decision Reviews the trial court record to determine if there have been any errors at trial that would require reversal or modification of the decision

2 - 7Copyright © 2004 by Prentice-Hall. All rights reserved. The State Court Systems (continued)  State Supreme Court The highest court in a state court system The highest court in a state court system Hears appeals from intermediate state courts and certain trial courts Hears appeals from intermediate state courts and certain trial courts No new evidence or testimony is heard No new evidence or testimony is heard Decisions of state supreme courts are final, unless a question of law is involved that is appealable to the U.S. Supreme Court. Decisions of state supreme courts are final, unless a question of law is involved that is appealable to the U.S. Supreme Court.

2 - 8Copyright © 2004 by Prentice-Hall. All rights reserved. A Typical State Court System State Trial Courts of General Jurisdiction State Supreme Court State Appeals Courts Civil Division Criminal Division Probate Division Domestic Relations Division Juvenile Division Small Claims Courts Municipal Courts Justice of the Peace Courts Appeal to U.S. Supreme Court

2 - 9Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System Special Federal Courts U.S. District Courts U.S. Courts of Appeals U.S. Supreme Court

2 - 10Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  Special Federal Courts Federal courts that hear matters of specialized or limited jurisdiction Federal courts that hear matters of specialized or limited jurisdiction They include: They include:  U.S. Tax Court  U.S. Claims Court  U.S. Court of International Trade  U.S. Bankruptcy Court

2 - 11Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. District Courts The federal court system’s trial courts of general jurisdiction The federal court system’s trial courts of general jurisdiction They are empowered to: They are empowered to:  Impanel juries  Receive evidence  Hear testimony  Decide cases Most federal cases originate in federal district court Most federal cases originate in federal district court

2 - 12Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. Courts of Appeals The federal court system’s intermediate appellate courts The federal court system’s intermediate appellate courts These courts hear appeals from the district courts located in their circuit These courts hear appeals from the district courts located in their circuit

2 - 13Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. Courts of Appeals (continued) These courts review the record of the lower court or administrative agency proceedings to determine if there has been any error that would warrant reversal or modification of the lower court decision These courts review the record of the lower court or administrative agency proceedings to determine if there has been any error that would warrant reversal or modification of the lower court decision

2 - 14Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. Supreme Court The Supreme Court was created by Article III of the U.S. Constitution The Supreme Court was created by Article III of the U.S. Constitution The Supreme Court is the highest court in the land and is located in Washington, D.C. The Supreme Court is the highest court in the land and is located in Washington, D.C.

2 - 15Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. Supreme Court (continued) The Supreme Court hears appeals from federal circuit courts of appeals and, under certain circumstances, from federal district courts, special federal courts, and the highest state courts. The Supreme Court hears appeals from federal circuit courts of appeals and, under certain circumstances, from federal district courts, special federal courts, and the highest state courts. No new evidence or testimony is heard No new evidence or testimony is heard

2 - 16Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. Supreme Court (continued) The lower court record is reviewed to determine whether there has been an error that warrants a reversal or modification of the decision The lower court record is reviewed to determine whether there has been an error that warrants a reversal or modification of the decision The Supreme Court’s decision is final The Supreme Court’s decision is final

2 - 17Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  U.S. Supreme Court (continued) The Supreme Court can issue the following types of decisions: The Supreme Court can issue the following types of decisions:  Unanimous decision  Majority decision  Plurality decision  Tie decision

2 - 18Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued)  Petition for Certiorai A petition asking the Supreme Court to hear one’s case.  Petition for Certiorai A petition asking the Supreme Court to hear one’s case.  Writ of Certiorai An official notice that the Supreme Court will review one’s case.  Writ of Certiorai An official notice that the Supreme Court will review one’s case.

2 - 19Copyright © 2004 by Prentice-Hall. All rights reserved. The Federal Court System (continued) U.S. Supreme Court U.S. Court of Appeals (11 Territorial Circuits & D.C. Circuit) U.S. Court of Appeals for the Federal Circuit Many Federal Adminis- trative Agencies U.S. District Courts (96 Districts U.S. Tax Court U.S. Bankruptcy Courts U.S. Claims Court U.S. Court of International Trade U.S. Patent and Trademark Office

2 - 20Copyright © 2004 by Prentice-Hall. All rights reserved. Jurisdiction of Federal and State Courts Exclusive State Jurisdiction Matters not subject to federal jurisdiction Exclusive Federal Jurisdiction 1.Admiralty 2.Antitrust 3.Bankruptcy 4.Copyright 5.Federal Crimes 6.Patents 7.Suits against the U.S. 8.Other specified federal statutes Concurrent Jurisdiction 1.Federal questions 2.Diversity of citizenship cases

2 - 21Copyright © 2004 by Prentice-Hall. All rights reserved. The Jurisdiction of Courts Standing to Sue Jurisdiction Venue

2 - 22Copyright © 2004 by Prentice-Hall. All rights reserved. Cost-Benefit Analysis of a Lawsuit  The following factors should be considered in deciding whether to bring or settle a lawsuit: The probability of winning or losing. The probability of winning or losing. The amount of money to be won or lost. The amount of money to be won or lost. Lawyers’ fees and other costs of litigation. Lawyers’ fees and other costs of litigation. Loss of time by managers and other personnel. Loss of time by managers and other personnel.

2 - 23Copyright © 2004 by Prentice-Hall. All rights reserved. Cost-Benefit Analysis of a Lawsuit (continued)  The following factors should be considered in deciding whether to bring or settle a lawsuit: The long-term effects on the relationship and reputation of the parties. The long-term effects on the relationship and reputation of the parties. The amount of prejudgment interest provided by the law. The amount of prejudgment interest provided by the law. The aggravation and psychological costs associated with a lawsuit. The aggravation and psychological costs associated with a lawsuit.

2 - 24Copyright © 2004 by Prentice-Hall. All rights reserved. Cost-Benefit Analysis of a Lawsuit (continued)  The following factors should be considered in deciding whether to bring or settle a lawsuit: The unpredictability of the legal system and the possibility of error. The unpredictability of the legal system and the possibility of error. Other factors peculiar to the parties and lawsuit. Other factors peculiar to the parties and lawsuit.

2 - 25Copyright © 2004 by Prentice-Hall. All rights reserved. The Pretrial Litigation Process PleadingsDiscovery Dismissals and Pretrial Judgments Settlement Conference

2 - 26Copyright © 2004 by Prentice-Hall. All rights reserved. The Pleadings  Complaint and summons  Answer  Cross-Complaint and Reply  Intervention and Consolidation

2 - 27Copyright © 2004 by Prentice-Hall. All rights reserved. Statute of Limitations  A statute that establishes the period during which a plaintiff must bring a lawsuit against a defendant.  If a lawsuit is not filed within this time period, the plaintiff loses his or her right to sue.  Federal and state governments have established statutes of limitations for each type of lawsuit.

2 - 28Copyright © 2004 by Prentice-Hall. All rights reserved. Discovery  A legal process during which both parties engage in various activities to discover facts of the case from the other party and witnesses prior to trial.

2 - 29Copyright © 2004 by Prentice-Hall. All rights reserved. Discovery (continued)  Discovery serves several functions: Preventing surprise Preventing surprise Allowing parties to thoroughly prepare for trial Allowing parties to thoroughly prepare for trial Preserving evidence Preserving evidence Saving court time Saving court time Promoting the settlement of cases Promoting the settlement of cases

2 - 30Copyright © 2004 by Prentice-Hall. All rights reserved. Discovery (continued) The major forms of discovery are:  Depositions  Interrogatories  Production of documents  Physical and mental examination

2 - 31Copyright © 2004 by Prentice-Hall. All rights reserved. Dismissals and Pretrial Judgments  Pretrial Motion – a motion a party can make to try to dispose of all or part of a lawsuit prior to trial.  The two major pretrial motions are: 1. Motion for judgment on the pleadings 2. Motion for summary judgment

2 - 32Copyright © 2004 by Prentice-Hall. All rights reserved. Dismissals and Pretrial Judgments (continued)  Motion for Judgment on the Pleadings Motion that alleges that if all the facts presented in the pleadings are taken as true, the party making the motion would win the lawsuit when the proper law is applied to these asserted facts.

2 - 33Copyright © 2004 by Prentice-Hall. All rights reserved. Dismissals and Pretrial Judgments (continued)  Motion for Summary Judgment Motion that asserts that there are no factual disputes to be decided by the jury. Motion that asserts that there are no factual disputes to be decided by the jury. If so, the judge can apply the proper law to the undisputed facts and decide the case without a jury. If so, the judge can apply the proper law to the undisputed facts and decide the case without a jury. These motions are supported by affidavits, documents, and deposition testimony. These motions are supported by affidavits, documents, and deposition testimony.

2 - 34Copyright © 2004 by Prentice-Hall. All rights reserved. The Trial  Pursuant to the Seventh Amendment to the U.S. Constitution, a party to an action at law is guaranteed the right to a jury trial in cases in federal court.  Most state constitutions contain a similar guarantee for state court actions.

2 - 35Copyright © 2004 by Prentice-Hall. All rights reserved. The Trial (continued)  If either party requests a jury, the trial will be by jury.  If both parties waive their right to a jury, the trial will be without a jury.

2 - 36Copyright © 2004 by Prentice-Hall. All rights reserved. Phases of a Trial 1. Jury Selection 2. Opening Statements 3. The Plaintiff’s Case 4. The Defendant’s Case 5. Rebuttal and Rejoinder 6. Closing Arguments 7. Jury Instructions 8. Jury Deliberation 9. Entry of Judgment 1. Jury Selection 2. Opening Statements 3. The Plaintiff’s Case 4. The Defendant’s Case 5. Rebuttal and Rejoinder 6. Closing Arguments 7. Jury Instructions 8. Jury Deliberation 9. Entry of Judgment

2 - 37Copyright © 2004 by Prentice-Hall. All rights reserved. The Appeal  In a civil case, either party can appeal the trial court’s decision, either party can appeal the trial court’s decision, once a final judgment is entered. once a final judgment is entered.  In a criminal case, only the defendant can appeal. only the defendant can appeal.

2 - 38Copyright © 2004 by Prentice-Hall. All rights reserved. The Appeal (continued)  The appeal is made to the appropriate appellate court.  Notice of appeal must be filed within a prescribed time after judgment is entered.

2 - 39Copyright © 2004 by Prentice-Hall. All rights reserved. Alternative Dispute Resolution (ADR)  Methods of resolving disputes other than litigation.  Developed in response to the expense and difficulty of bringing a lawsuit.

2 - 40Copyright © 2004 by Prentice-Hall. All rights reserved. Alternative Dispute Resolution (ADR) Arbitration Mediation Conciliation Minitrial Fact-Finding Judicial Referee

2 - 41Copyright © 2004 by Prentice-Hall. All rights reserved. Key ADR Legislation  Federal Arbitration Act Arbitration agreements involving commerce are valid, irrevocable, and enforceable contracts. Arbitration agreements involving commerce are valid, irrevocable, and enforceable contracts.  Uniform Arbitration Act Adopted by half of the states. Adopted by half of the states. Promotes the arbitration of disputes at the state level. Promotes the arbitration of disputes at the state level.