1. Business Law I
Courts, Litigation
& Alternative
Dispute Resolution

2. Federal Courts
Two kinds of civil lawsuits permitted in Federal Courts -
Federal Question Cases
A claim based on the United States Constitution, a federal statute, or a federal treaty
Diversity Cases
When the plaintiff and defendant are citizens of two different states, AND
the amount in dispute is greater than $75,000

3. Federal Court System Trial Courts Appellate Courts
United States District Courts are the primary trial courts in the federal system.
The nation is divided into about 94 districts (based on population), each with its own District Court.
There are also specialized trial courts, such as Bankruptcy Court and Tax Court.
Appellate Courts
United States Courts of Appeals are the intermediate courts of appeals. The nation is divided into thirteen circuits.
The highest appeals court is the United States Supreme Court.

4. (Highest Appeals Court)
The Federal Court System
United States Supreme
Court
(Highest Appeals Court)
Nine Justices; appointed for life; may refuse to hear a case; final authority
U.S. Court of Appeals for the
Federal Circuit
U.S. Court
Of Appeals
(12 Circuits)
Lower Appeals Courts
Three judges hear each case, brought up from the District Courts.
Hears appeals from specialized trial courts.
U.S.
Tax
Courts
U.S. District
(94 Districts)
Bankruptcy
Various
Federal
Agencies
Primary Trial Court
Trial Courts of Limited (Specific) Jurisdiction
U.S. Court of
International
Trade
U.S.
Court of
Claims
U.S. Patent
& Trademark
Office
Trial Courts of Limited (Specific) Jurisdiction

5. Geographic Boundaries of United States Courts of Appeals and United States District CourtsDC
Fed

6. Federal Forums of Limited (Specific) Jurisdiction
Bankruptcy Court, Tax Court, Court of International Trade, Patent and Trademark Court - These trial courts in the federal system hear cases appropriate to their names (tax cases in the Tax Court, etc.) Appeals from the Bankruptcy and Tax Courts are heard by the Court of Appeals in the appropriate circuit. Appeals from the Court of International Trade and the Patent & Trademark Court are heard by the Court of Appeals in the Federal Circuit.
U.S. Court of Claims - Hears cases brought against the United States, typically on contract disputes.
Various Federal Agencies - Though not actually a part of the Judicial Branch of the Federal government, many Federal agencies have the power to create and enforce appropriate regulations.

7. State Court System Trial Courts Appellate Courts
Almost all cases begin in trial courts, with a judge and usually a jury.
Trial courts determine the facts of a particular dispute and apply the law to those facts.
Courts can only hear cases under their jurisdiction.
Appellate Courts
Appeal courts generally accept the facts given to them by trial courts and just review the trial record to see if the court made any errors of law.
The highest appeals court in a state is the state Supreme Court.

8. Massachusetts Court System
Trial Courts
District Courts and the Boston Municipal Courts are the primary trial courts that handle civil cases <$25,000 and criminal cases where the penalty is <5 years.
Superior Courts are the primary trial courts that handle civil cases >$25,000 and criminal cases where the penalty is >5 years. There are 14 Superior Courts whose jurisdictions are divided by county.
There are also specialized trial courts, such as Small Claims Courts and Traffic Courts.
Appellate Courts
The Massachusetts Appeals Court is the intermediate courts of appeals.
The highest appeals court is the Massachusetts Supreme Judicial Court.

9. The Massachusetts Court System
Supreme Judicial
Court
(Highest Appeals Court)
Five Justices sit en banc; may refuse to hear a case; final authority
Massachusetts
Appeals Court
(Lower Appeals Court)
Three Justices sit en banc; never a jury
Superior
Courts
District
Boston
Municipal
Court
Probate
& Family
Housing
Land
Juvenile
Traffic
Courts
Small
Claims
Trial Courts of General Jurisdiction
One judge; may have jury
Trial Courts of Limited (Specific) Jurisdiction

10. Geographic Boundaries of Massachusetts Trial Courts

11. Massachusetts Courts of Limited (Specific) Jurisdiction
Small Claims Courts – Hear only civil suits under $2,000
Traffic Courts – Hear only traffic cases
Juvenile Courts – Hear only cases involving minors
Land Courts – Hear land and real property disputes
Probate Courts – Settle estates of deceased persons
Family Courts – Handle marital and child custody issues
Housing Courts – Handle landlord/tenant disputes

12. Litigation vs. Alternative Dispute Resolution
Litigation -- refers to lawsuits; the process of filing claims in court, and ultimately going to trial.
Alternative Dispute Resolution -- is any other formal or informal process for settling disputes without going to trial.

13. Alternative Dispute Resolution (most common forms)
Negotiation
Parties make offers and counter-offers for settlements.
May be face-to-face or through lawyers.
Mediation
Neutral person (mediator) attempts to get parties to reach a voluntary settlement.
Mediator does not render a decision.
Arbitration
Neutral person (arbitrator) is involved.
Arbitrator often has expertise in area of dispute.
Arbitrator renders a binding decision.
Arbitration may be mandatory, if chosen in advance as the method for dispute resolution.

14. Alternative Dispute Resolution (less common forms)
Forum
Decision Maker
Advantages
Conductor
Minitrial
Executives of disputing companies
Companies are more likely to settle.
Neutral third party
Summary Jury Trial
Six-member mock jury
Disputants are more likely to settle.
Judge or magistrate
Private Judge
(Judge Judy)
Hired judge
Circumstances are like trial, but without a waiting period.

15. Litigation Roadmap

16. Steps in Beginning Litigation
Pleadings: Papers that begin a lawsuit
1. Complaint
Short, plain statement of the allegations and the legal claims. This is “served” or delivered with a summons.
2. Answer
A brief reply to the allegations.
3. Counter Claim
Sometimes the accused party will initiate a second suit in response to the first.
4. Reply
A brief reply to the counter-claim.

17. Possible Variations on Pleadings
Class Actions
If the plaintiff has evidence that the wrong in question has affected a large number of unrelated persons, the suit may become a class-action suit, with the plaintiff representing an entire class of plaintiffs.
Default Judgment
If the defendant fails to answer in time, the plaintiff will ask for a default judgment, meaning an automatic win without a trial.

18. Example of
a Complaint

19. Discovery -- next step after pleadings
Allows both sides to uncover evidence, encouraging a settlement or ensuring few surprises during a trial.
Interrogatories -- written questions that the other party must answer, under oath
Depositions -- interview (under oath) of other party or potential witnesses; done by opposing lawyer
Production of Evidence -- each side may request to see the other side’s evidence
Physical or Mental Exams -- one party may request the court to order an examination of the other party if relevant

20. Discovery (cont’d)
Sometimes the results from interrogatories and depositions will cause one side or the other to file a motion in response.
Motion to compel answers to interrogatories – may be made if one side thinks the other has not adequately answered interrogatories
Motion for protective order – is a request to the court that the other side be made to reduce the number of depositions.

21. Case Analysis Motion to Strike
Stinton v. Robin’s Wood, Inc., 45 A.D. 3d, 842 NYS2d 477, New York App. Div., 2007
Facts
Issue
Decision
Reasoning

22. Other Steps Before Trial
Summary Judgment -- a ruling by the court that no trial is necessary because there are no essential facts in dispute; may be requested by either side.
Final Preparation -- if the case is to proceed to trial, both sides make a list of witnesses and rehearse questions with their own witnesses. Preparation is allowed, but telling the witnesses how to answer is not legal or ethical.

23. Case Analysis Motion for Summary Judgment
Jones v. Clinton, 990 F. Supp. 657, 1998 U.S. Dist. LEXIS 3902, United States District Court for the District of Arkansas,
Facts
Issue
Decision
Reasoning

24. Adversary System
The adversary system presumes that the truth will be found if lawyers are allowed to question witnesses for both sides.
Both the plaintiff and the defendant have the right to request a jury trial, but only in those criminal cases which may result in the death penalty or incarceration for a period of greater than six months is there an absolute right to a jury trial.

25. Procedural Rules for a Trial
Burden of Proof
The plaintiff must convince the jury that its version of the case is correct.
In a civil case, the proof needs to be by a preponderance of evidence (meaning at least slightly more likely to be true).
In a criminal case, the proof required is higher; it must be beyond a reasonable doubt.

26. The Plaintiff’s Case Opening Arguments Plaintiff Calls Witnesses
This is a brief summary, given by each side, of the facts they hope to demonstrate.
Plaintiff Calls Witnesses
Questions to own witnesses is direct examination.
Lawyer only asks questions with helpful answers.
Defendant Questions Witnesses
Questions to opposing witnesses is cross examination.
Again, lawyer asks questions with helpful answers.
Defendant Moves for Directed Verdict
This is asking the judge to decide that the plaintiff has no case worth proceeding with.

27. The Defendant’s Case Opening Arguments Defendant Calls Witnesses
Defendant’s opening arguments were presented earlier, before the plaintiff presented its case.
Defendant Calls Witnesses
Questions to own witnesses is direct examination.
Lawyer only asks questions with helpful answers.
Plaintiff Questions Witnesses
Questions to opposing witnesses is cross examination.
Again, lawyer asks questions with helpful answers.
Closing Arguments
Brief summary, by both sides, urging the jury to believe their side of the case.

28. After Both Sides Rest (Finish)
Jury Instructions
The judge instructs the jury to evaluate the case solely on the facts of the evidence presented.
If the case is influenced by a certain legal presumption, the judge will summarize that for the jury.
Deliberation and Verdict
The jury discusses the case for as long as needed (anywhere from less than an hour to several weeks).
Sometimes the jury must be unanimous; other times only a majority (at least 7) or a 10-2 vote is required.

29. The Trial is Over… or is it?
Motions after the Verdict
The loser might request the judge to overturn the verdict on a legal technicality or on a claim that the jury ignored the evidence.
Appeal
The recourse for the loser is to file an appeal, a request for a higher court to examine the facts.
The appeals court may affirm the verdict, modify the award, reverse and remand (send it back to trial) or simply reverse (overturn) the lower court’s verdict.
Settlement
At any point, either side may offer to settle the case, even between the verdict and the beginning of an appeal.

30. Quiz Matching Questions
Arbitration
Diversity Jurisdiction
Mediation
Interrogatories
Deposition
1.  A pretrial procedure involving written questions to be signed under oath.
2.  A form of ADR in which the parties themselves craft the settlement.
3.  A pretrial procedure involving oral questions answered under oath.
4.  The power of a federal court to hear certain cases between citizens of different states.
5.  A form of ADR that leads to a binding decision.

31. Quiz True/False Questions
One advantage of arbitration is that it provides the parties with greater opportunities for discovery than litigation does.
In the United States there are many separate courts, but only one court system, organized as a pyramid.
If we are listening to witnesses testify, we must be in a trial court.
About one-half of all lawsuits settle before trial.
In a lawsuit for money damages, bot the plaintiff and the defendant are generally entitled to a jury. F T F F

32. End of Courts, Litigation, & Alternative Dispute Resolution