1. Introduction to Legal Process in the United States
Sources of law
Court system
Judicial process
Alan R. Palmiter
23 Jan 12

2. (1) Sources of law Legislative Executive / Administrative Judicial
Federalism: federal (supreme) vs. state

3. Legislative (Congress)
Constitution
Statutes
Legislative history
Administrative
(Securities & Exchange Commission)
Regulation (rules)
Agency decisions
Opinions
No-action letters
Judicial (federal courts)
Constitutional review
Statutory interpretation
Common law (precedent)

4. (2) Court systems Federal State (North Carolina) US Supreme Court NC
Court of
Appeals NC
Court of
Appeals US
District
Court
Special
Court NC
District
Court NC
Superior
Court NC
Business
Court

5. Judicial info Federal State (North Carolina) US Supreme Court
Discretionary review (from federal courts of appeal and state supreme courts)
Original jurisdiction (state vs. state)
Appointed for life by President (Senate confirms)
US Courts of Appeals
Appeal of right from US trial courts
Review of errors (primarily legal)
11 regional circuits / DC Circuit / Federal Circuit
US trial courts
US District Courts
Limited jurisdiction (federal questions / diversity cases)
Exclusive / concurrent jurisdiction
Juries for $ damages / judges for injunctions
Special courts
US Claims Court
US Bankruptcy Court
US International Court of Trade
US Tax Court
State (North Carolina)
NC Supreme Court
Discretionary review (questions of law)
Elected (7 justices)
NC Court of Appeals
Appeal of right from superior courts
Review of errors (factual / legal)
15 elected judges (appeals heard by 3-judge panels)
NC trial courts
Superior court: felonies / civil > 10K / jury trial
District courts: minor criminal / civil <10K / family law
Magistrate court: traffic court / small civil <4K
Small claims court: small civil <4K, pro se (no attorney)
Special business court: by reference
Sits in Greensboro, Raleigh, Charlotte
Three appointed judges
All filings in electronic form

6. Federal courts

8. (3) Judicial process Trial Pre-trial Discovery Pleading
Jury / bench trial
Live, continuous: witness / exhibits
Rules of evidence
Lawyer arguments
Filters
Directed verdict
(judgment as matter of law)
Pre-trial
Settlement conference
Alternative dispute methods: mediation / arbitration
Pre-trial conference
Filters
Summary judgment
Voluntary dismissal (settlement)
Discovery
Depositions
Interrogatories
Document requests
Examinations (physical and mental)
Admissions
Filters
Discovery sanctions
Pleading
Complaint (individual or class action)
Answer (counterclaim / cross-claim)
Filters
Default judgment
Motion to dismiss
Rule11 sanctions
Post-trial (appeals)
Reopen case before appeal
Enforcement of judgment
Appeal (on record)
Filters
Judgment notwithstanding verdict (NOV)
Appeal: affirm, reversal, remand
Pleading
Discovery
Pre-trial
Trial
Post-trial (appeals)
Filters at each stage

9. Basic Inc. v. Levinson (US 1988)
1.  What are the facts in the case?
What allegations did the plaintiffs make?
What kind of suit is this?  What do the plaintiffs seek?
Who are the defendants?
2.  What is the issue that the Court addresses?
What are the arguments of the defendants?
What are the responses by the plaintiffs?
3.  What is the definition of materiality adopted by the Court?
What alternatives did the Court have in choosing a definition?
What is an "agreement in principle" definition?  a "price and structure" definition?
What is a "probability-magnitude" test?  Is this how financial markets judge information's materiality?
4.  Why does the Court adopt a case-by-case definition of materiality?
Why does the Court reject the bright-line tests urged by the defendants?
What are the advantages and disadvantages of the Court's approach?
After this case, when should corporate executives disclose merger negotiations?
5. After this case, when can corporate executives strategically misinform securities markets about merger plans?

10. The end