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Chapter 3—The Court System
REED SHEDDREED SHEDD PAGNATTARO PAGNATTARO MOREHEAD MOREHEAD
F I F T E E N T H E D I T I O NF I F T E E N T H E D I T I O N
TheThe Legal & Legal & RegulatoryRegulatory Environment of of BusinessBusiness
McGraw-Hill/IrwinCopyright © 2010 by The McGraw-Hill Companies, Inc. All rights
reserved.
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Understand key personnel associated with the court system.
Learn how the state and federal court systems are organized and how they function.
Learn about the power of judicial review and the conflicting philosophies of judicial restraint and judicial activism.
To appreciate the background and judicial alignment of the current members of the U.S. Supreme Court.
Be exposed to a sample case from the U.S. Supreme Court.
Learning Objectives
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Corporate governance, in a property – based environment, requires a viable court system.
Food for thought…
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Judges And Justices
Determine Rules of Law for
Case
Finds Facts If No Jury Trial Judge
Renders Decision
Dealing With People In Conflict
Justices – Deal With
Issues of Law On Appeal
Most Extensive Power
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Jurors Fact-Finding Body- Petit Jury
Size• Usually 12
• Some provisions for smaller
Decision• Usually unanimous
• No reason given
Current Reforms
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Jury Verdicts
$850Million
$700 Million
$554Million
Man, AG v. Freightliner
Gulsby Engineering v. Gulf Liquids
Cook v. Rockwell
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Lawyers
Required inmost cases
Representation Advocates
Duty to Administration
Of Justice
Counselor, Advocate,
Public Servant
Confidential Communications
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Federal And MostState Court Systems
Trial CourtsTrial Courts
Appellate CourtsAppellate Courts
Supreme CourtsSupreme Courts
Subject MatterJurisdiction – Power over Particular
Issues
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State Courts- Sources Of Authority
State Constitution
State Legislature
Court Rules Of Procedure
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State Courts – Trial & Appellate
Trial:
Superior Court, Circuit Court, District Court
Lawsuit - Complaint Filed
Determines Facts & Law
Appellate:
Review Questions Of Law
Consist Of 3 – 9 Judges
Petition For Leave To Appeal/Writ of Certiorari
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Small Claims Court Handles Much Litigation Between Business &
Customers
Minor Financial Issues
Benefits
Informal
Low Court Costs
Simplified Procedures
Dollar Limitation
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Federal CourtsFederal Courts
Federal Jurisdiction
• Article III Of Constitution• Reviews:
• Questions of Federal Law• U.S. As Party• State Disagreements• Suits Between Citizens Of Different States
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pop
QUIZpop
QUIZpop
QUIZThe general role of an appellate court The general role of an appellate court is to:is to:a.a. Review questions of factReview questions of factb.b. Review questions of fact and lawReview questions of fact and lawc.c. Review questions of lawReview questions of lawd.d. Review only constitutional questionsReview only constitutional questions
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U.S.Constitution
Issues
Federal Statute Issues
No $ Limit
Federal Questions
Federal Question Cases
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Plaintiffs/ Defendants –
Citizens of Different
States
Each Claim
Must Be $75,000+
Guard Against
State Court Bias
Diversity
Diversity Of Citizenship
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District Courts Federal Trial Courts Review Lawsuits Receive Evidence Evaluate Testimony Impanel Juries Resolve Disputes Federal Rules Of Civil Procedure
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Appellate Courts 12 U.S. Courts Of Appeals
Court Of Appeals For The Federal Circuit-
Handles Appeals From Special Courts U.S. Claims Court
Administrative Decisions
Court Of Military Appeals
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U.S. Supreme Court Writ Of Certiorari- Matter Of:
Federal Importance- Constitutional Issue Conflicting Decisions Of U.S. Circuit Courts
Decision Becomes “Law Of Land”- Not Subject To Review
Courtesy of T. Bundgaard
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Power To Interpret Legislation And Power To Interpret Legislation And Determine ConstitutionalityDetermine Constitutionality
Judicial Restraint•Strict Constructionism
•Change Come From Political Process
Judicial Review
Judicial Activism• Courts Help Correct
Society Wrongs•Value-Oriented & Policy
Directed
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Will Ruling Provide Justice and Sound Precedent?
Nature Of Judicial ProcessCase To Be Decided
Use Existing
Statutes &Precedent
Create Law Where
None Exists
Refuse To Apply
Case Law or Find Unconst-
itutional