Chapter 2: The U.S. Legal System and Alternative Dispute Resolution

Types of Jurisdiction Original Jurisdiction: The power to hear and decide cases when they first enter the legal system Appellate Jurisdiction: The power to review previous judicial decisions to determine whether trial courts erred in their decisions

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Chapter 2The U.S. Legal System and Alternative Dispute ResolutionMcGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.Types of JurisdictionOriginal Jurisdiction: The power to hear and decide cases when they first enter the legal systemAppellate Jurisdiction: The power to review previous judicial decisions to determine whether trial courts erred in their decisions2-*Types of JurisdictionIn personam jurisdiction: The power to render a decision affecting the rights of the specific persons before the courtSubject-matter jurisdiction: The power to hear certain kinds of cases2-*Subject-Matter Jurisdiction: Exclusive Federal JurisdictionAdmiralty casesBankruptcy casesFederal criminal prosecutionsCases in which one state sues another stateClaims against the United StatesFederal patent, trademark, and copyright claimsOther claims involving federal statutes that specify exclusive federal jurisdiction2-*Subject-Matter Jurisdiction: State JurisdictionAll cases not falling under Exclusive Federal Jurisdiction2-*Subject-Matter Jurisdiction: Concurrent Federal and State JurisdictionFederal question casesDiversity of citizenship cases2-*The Federal Court SystemThe United States Supreme CourtIntermediate Courts of AppealFederal Trial Courts (U.S. District Courts)2-*State Court SystemsState Supreme CourtsIntermediate Courts of AppealState Trial Courts2-*Threshold Requirements for LitigationStanding (to sue)-Actual/imminent injury in fact-Injury traceable to actions of defendant-Injury redressed by favorable decisionCase or Controversy (Justifiable Controversy)-Adverse relationship between plaintiff and defendant-Actions of one party give rise to legal dispute-Court decision able to resolve disputeRipeness-Decision able to affect parties immediately2-*Steps in Civil Litigation: The Pretrial StageInformal NegotiationsPleadingsService of ProcessDefendant’s ResponsePretrial MotionsDiscoveryPretrial Conference2-*Steps in Civil Litigation: The TrialJury SelectionOpening StatementsExamination of Witnesses and Presentation of EvidenceClosing ArgumentsJury Instructions2-*Steps in Civil Litigation: Post-Trial Motions Motion For Judgment In Accordance With VerdictMotion For Judgment Notwithstanding VerdictMotion For New Trial2-*Steps in Civil Litigation:Appellate Procedure2-*Appellate Court Decision-Making PowersAffirmationModificationReversalRemand2-*Alternative Dispute Resolution2-*Alternative Dispute ResolutionDefinition: The resolution of legal disputes through methods other than litigation, such as negotiation, mediation, arbitration, summary jury trials, mini-trials, neutral case evaluations, and private trials2-*Reasons A Business Might Prefer Alternative Dispute Resolution (ADR) Versus LitigationADR methods are generally faster and less expensive than litigationBusiness may wish to avoid uncertainty associated with a jury decisionBusiness may wish to avoid setting precedent through court decisionBusiness may prefer confidential nature of ADR2-*Primary Forms of Alternative Dispute ResolutionNegotiationMediationArbitration2-*Advantages of MediationHelps disputing parties preserve their professional relationshipsProvides possibility of finding creative solutions to disputeOffers participants high level of autonomy2-*Disadvantages of MediationAppears to be an equal process and solution, thereby hiding power imbalances that would lead to the party with greater power securing an agreement of greater benefitSome enter mediation with no intention of finding a solution, and use mediation as a delay tactic2-*Advantages of ArbitrationMore efficient and less expensive than litigationParties have more control over the process of dispute resolution (parties choose the arbitrator and determine how formal the process will be)Parties can choose arbitrator with expertise in specific subject matter of disputeArbitrator has greater flexibility in decision-making (compared to decision-making authority of judge)2-*Disadvantages of ArbitrationAs use of arbitration increases, efficiencies and lower cost advantages (compared to litigation) decreaseDifficulty of appealing an arbitration awardLoss of civil rights and remedies available through litigationCompanies and employers may effectively “hide” their disputes through arbitration (non-public nature of arbitration versus public trial)2-*Binding Arbitration ClauseDefinition: A provision in a contract mandating that all disputes arising under a contract must be settled by arbitration2-*Other Alternative Dispute Resolution MethodsMediation-Arbitration (“Med-Arb”)Summary Jury TrialMini-TrialEarly Neutral Case EvaluationPrivate Trials2-*