Unit 4B Lecture Note - Court Systems

Federal Court System

The judicial power of the United States is vested by Article III of the Constitution in the Supreme Court and lower federal courts set up by Congress.  There are two types of federal jurisdiction: federal question and diversity.  Federal question jurisdiction is based upon the existence of a claim grounded in federal law (this is sometimes called subject matter jurisdiction.)  Where there is a  federal claim the jurisdiction may be either exclusive or concurrent with the states.  If federal jurisdiction is exclusive then any sate attempts to regulate the area are said to be preempted.   Patents, copyrights, admiralty and bankruptcy are all areas where the federal law is exclusive.  Where jurisdiction is concurrent both the states and the federal government may regulate the subject matter.  Most federal environmental statutes explicitly recognize concurrent state jurisdiction subject to certain federal limitations.   Diversity jurisdiction exists where the amount in controversy exceeds $75,000 and there is complete diversity between the parties.  Complete diversity exists where no defendant and plaintiff are from the same states.  In diversity cases federal courts apply the law of the state where the claim arose.  Only in cases based upon a federal question do federal courts apply federal law. Congress, last year (2005), gave federal courts jurisdiction over certain large dollar amount class actions.

The Supreme Court has original jurisdiction and serves as a trial court in those cases involving ambassadors and other public ministers and consuls, and in disputes between the states.  In all other controversies the Supreme Court serves as an appellate court.  Appeals to the Supreme Court are usually by a writ of certiori.   The Supreme Court declines to hear most such appeals.  Out of several thousand appeals it usually hears between 80 to 90 cases per year.

The other Article III courts are the circuit courts of appeal, the intermediate appellate courts in the federal system, and the federal district courts, the primary trial courts in the federal system.

There are also federal courts established under Article I of the Constitution.   Judges in these courts serve for fixed terms rather than life and the standard of review is stricter - in some cases de novo review by an Article III court may be available.  Examples of Article I courts include the bankruptcy courts and the U.S. Court of Federal Claims that hears all claims for money against the government of the United States.

The North Carolina Court System

The North Carolina court system consists of three divisions: the Appellate Division, the Superior Court Division, and the District Court Division.  The appellate division consists of the Supreme Court and the Court of Appeals.  The Superior Court Division consists of the superior  courts that serve as trial courts of general jurisdiction.  Major civil cases and serious criminal matters are heard in superior court.  The courts of the District Court Division handle civil actions where the amount in controversy is less than $10,000.  These courts also handle such matters as divorce and child support as well as all juvenile matters and some criminal cases.  Small claims of $3,000 or less are referred to magistrates.

Alternate Dispute Resolution