Overview

The United States has a dual court system—federal and state—each with its own jurisdiction, trial procedures, and appellate pathways. Business disputes may be litigated, arbitrated, or settled through alternative dispute resolution (ADR). Understanding these systems is critical for choosing the most effective forum and strategy.

Key Concepts and Structures

• Jurisdiction: Subject‑matter (federal question, diversity), personal, and venue considerations.
• Federal Courts: District Courts → Circuit Courts of Appeal → U.S. Supreme Court.
• State Courts: Trial Courts (courts of general jurisdiction), intermediate Courts of Appeal, State Supreme Courts.
• Civil Procedure: Pleadings (complaint, answer), discovery (interrogatories, depositions), motions (summary judgment), trial, appeal.
• Rules of Evidence: Relevance, hearsay exceptions, privilege (attorney‑client, work product).
• ADR Methods: Negotiation, mediation (non‑binding), arbitration (binding/private), mini‑trial.
• Burdens of Proof: “Preponderance of the Evidence” in civil cases vs. “Beyond a Reasonable Doubt” in criminal cases.

Step-by-Step Example

Scenario: A Delaware corporation sues a California supplier for breach of contract worth $150,000. Where can the case be filed, and what procedure follows?

Step 1 — Jurisdiction: Diversity of citizenship (Delaware vs. California) and amount in controversy > $75,000 allow filing in federal District Court.

Step 2 — Pleadings: Corporation files complaint; supplier must answer within 21 days or risk default.

Step 3 — Discovery: Parties exchange documents (emails, purchase orders) and depose key witnesses.

Step 4 — Motion Practice: Supplier moves for summary judgment arguing no genuine dispute—court denies.

Step 5 — ADR Option: Judge orders mediation; parties settle for $120,000—case dismissed with prejudice.

Final Answer: Diversity jurisdiction permits federal filing; after pleadings and discovery, mediation resolved the dispute without trial.

Quick Tip