BMGT380 - Chapter 2: The Resolution of Private Disputes

trial courts

do the same as courts of limited jurisdiction, but

1) not governed by the subject-matter restrictions or the limits on civil damages or criminal penalties that govern courts of limited jurisdiction

2) courts of record that keep detailed records of hearings, trials, and other proceedings

courts of limited jurisdiction

find the relevant facts, identify the appropriate rule(s) of law, and combine facts and the law to reach a decision

ex) traffic courts, probate courts, small claims courts

appellate courts 

generally only decide legal questions 

-review the record of the trial courts proceedings 

jurisdiction 

court’s power to hear to hear a case and to issue a decision binding on the parties 

venue requirements

legal criteria that determine the appropriate location for a trial

-only after jurisdiction is established or assumed

-has if it is territorially fair and convenient forum in which to hear the case

subject-matter jurisdiction

court’s power to decide the type of dispute involved in the case

in personam jurisdiction

based on the residence, location, or activities of the defendant 

-jurisdiction over defendants who are citizens or residents of the state (even if situated out-of-state) 

long-arm statutes

out-of-state defendants can be sued if sufficient minimum contacts exist

-nonresident individuals and businesses may become subject to the jurisdiction of the out of state’s courts

-ex) doing business within the state, contracting to supply goods or services within the state, committing a tort (a civil wrong) within the state, committing a tort outside the state if it produces harm within the state

minimum contacts test

due process requires a defendant reasonably anticipate being sued there 

in rem jurisdiction

based on the presence of peroprty within the state

forum selection clause 

clause that recites disputes between parties regarding matters connected with the contract 

diversity jurisdiction

exists when

1) the case is between citizens of different states

2) the amount in controversy exceeds $75,000

-Sometimes in certain cases between citizens of a state and citizens or governments of foreign nations if the amount in controversy exceeds $75k

-corporation is citizen of both the state where it has been incorporated and the state where it has its principal place of business

federal question jurisdiction

when the case arises under the Constitution, laws, or treaties of the United States

-”arises under”: met when a right created by federal law is a basic part of the plaintiff’s case

-no amount-in-controversy requirement for federal question jurisdiction

exclusive jurisdiction

authority of a court to be the only court that can hear and decide a particular type of case 

concurrent jurisdiction

both state and federal courts have jurisdiction over the case

certiorari jurisdiction

the court has discretion whether to hear the appeal

1) validity of any treaty or federal statute has been questions

2) any state statute is challenged as repugnant to federal law

3) any title, right, privilege, or immunity is claimed under federal law

original jurisdiction

Supreme Court acts as a trial court

-has original and exclusive jurisdiction over all controversies between two or more states

-has original but NOT exclusive jurisdiction over cases involving foreign ambassadors, ministers, and like parties, controversies between the U.S. and a state, cases in which a state proceeds against citizens of another state or against aliens

civil procedure 

set of legal rules establishing how civil lawsuits proceed from beginning to end 

adversary system

system in which the parties, through their attorneys, take contrary positions befoe a judge and possibly a jury

preponderance of the evidence

plaintiff proves each element of claim

-must convince the fact-finder that existence of each element is more probable than nonexistence

summons

notifies the defendant that he, she, or it is being sued and must be personally delivered 

pleadings

are the documents the parties file with court when they first state their respective claims and defenses

components: complaint, answer, reply

-aim less to define issues for trail than to give parties general notice of each other’s claims and defenses

complain

-allege sufficient facts to show that the plaintiff would be entitled to legal relief

-give defendant reasonable notice of nature of plaintiff’s claim

answer

-must file ______ to plaintiff’s complaint within a designated time 

-affirmative defense 

-counterclaim

affirmative defense

enables defendant to win the case even if all allegations in the complaint are true

counterclaim

new claim by the defendant arising from the matters stated in the complain

reply

-plaintiff is allowed or required to respond to an affirmative defense or a counterclaim

-point-by-point response to the allegations in the answers or counterclaim  

motion to dismiss

procedural device for ending the case at this early stage

motion for judgement on the pleadings

occurs after the pleadings have been completed - defendant wins the case

demurrer

motion to dismiss for failure to state a claim upon which relief can be granted

-even if all of his allegations are true became no rule of law entitles him to win on those facts

discovery rights 

each party is entitled to request information from the other party by utilizing the forms of discovery

Federal Rules of Civil Procedure

require each party with other party certain relevant information at an early point in the case without a formal discovery request by the party

deposition

one party’s attorney conducts an oral examination of the one party or of a likely witness (usually one identified with the party)

interrogatories 

written questions directed by the plaintiff to the defendant or vice versa

requests for admissions

one party’s written demand that the other party admit or deny, in writing, certain statements of supposed fact or of the application of law to fact

electronically stored information (ESI)

broad enough to include e-mails, similar communications, electronic business records, web pages, dynamic databases, host of other material existing in electronic form

must provide if: 

1) relevant 

2) not protected by legal privilege 

3) reasonably accessible

summary judgement

device for disposing of relatively clear cases without a trial

-no genuine issue of material (legally significant) fact

-entitled to judgement as a matter of law

pretrial conference

either mandatory or held at the discretion of the trial judge — judge meets informally with the attorneys for both litigants

trial

may be before judge alone or if right to a jury trial exists

voir dire

pretrial jury screening process where biased jurors removed for cause

trial procedure

-opening statement 

-plaintiff’s cafe-in-chief 

-defendant’s case-in-chief 

-rebuttal from each party 

-closing arguments 

expert witnesses

allowed if witness qualifies as an expert by virtue of knowledge, skill, experience, or background

-his or her opinion would be based on sufficient facts and would result from reasoned application of principles and methods

general verdict

jury decides for one party and awards damages

special verdict 

jury answers fact questions; judge applies law 

directed verdict

takes the case away from the jury and provides a judgement one party before the jury gets a chance to decide the case

Judgement Notwithstanding the Verdict

judge overturns verdict if contrary to law

Motion for New Trial

request new trial due to legal errors by judge, jury or attorney misconduct, discovery of new evidence, aware of excessive damages to the plaintiff

garnishment

seize property, money, wages that belong to the defendant but are in the hands of a third party such as bank or employer

class action

allows one or more persons to sue on behalf of themselves and all others who have suffered similar harm from substantially the same wrong

issues addressed in class action 

-Whether there are questions of law and fact common to all members of the alleged class

-Whether those common questions predominate over other questions

-Whether the class is small enough to allow all of its members to join the case as parties

-Whether the plaintiff(s) and their attorney(s) can adequately represent the class without conflicts of interest or other forms of unfairness

alternative dispute resolution (ADR)

-Quicker resolution of disputes

-Lower costs in time, money, aggravation for the parties

-Lessening of the strain on an overloaded court system

-Use of decision makers with specialized expertise

-Potential for compromoise decisions that promote and reflect consensus between the parties

settlement

Contract whereby the defendant without admitting liability agrees to pay the plaintiff a sum of money in exchange for the plaintiff’s promise to drop the claim against the defendant

arbitration

- is the submission of a dispute to a neutral, nonjudicial third party (the arbitrator) who issues a binding decision resolving the dispute

-Have freedom to ignore rules of substantive law that would bind a court

-Decision called an award

Federal Arbitration Act (FAA)

says that grounds for overturning an arbitration award include

-A party’s use of fraud

-Arbitrator’s partiality or corruption

-Other misconduct by the arbitrator

Forced Arbitration Injustice Repeal Act (FAIR Act)

prohibits forced arbitration agreement from being enforced if it requires forced arbitration of an employment, consumer, or civil rights claim against a corporation

court-annexed arbitration

• Certain civil lawsuits are diverted into arbitration 

• Losing party has right to a regular trial 

• Mandatory when claim value < threshold set by court 

• Judge ususally orders arbitration; some states make it optional

mediation

-Neutral third party helps parties reach cooperative resolution

-Facilitates communication, cannot impose decisions

-Mediation agreement (if reached) enforceable under contract law

-Used in labor, family, commercial, environmental

-Voluntary or court-annexed

summary jury trial

-Abbreviated nonpublic mock jury trial

-Provides parties with a reality check on likely trial outcomes

-Nonbinding - parties can still go to trial if no settlements

-Some disagreement over whether courts can compel participation

minitrial 

• Informal abbreviated private ‘trial’ to promote settlement 

• Counsel presents case to senior management panel 

• Neutral advisor (retired judge) offer opinion on likely outcome 

• Managers then attempt to negotiate settlement after hearing cases