BUSINESS LAW TODAY Essentials 9th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A.
Download
Report
Transcript BUSINESS LAW TODAY Essentials 9th Ed. Roger LeRoy Miller - Institute for University Studies, Arlington, Texas Gaylord A.
BUSINESS LAW TODAY
Essentials 9th Ed.
Roger LeRoy Miller - Institute for University Studies, Arlington, Texas
Gaylord A. Jentz - University of Texas at Austin, Emeritus
Chapter
3
Courts and Alternative
Dispute Resolution
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
1
Learning Objectives
What is judicial review? How and when was the
power of judicial review established?
Before a court can hear a case, it must have
jurisdiction. Over what must it have
jurisdiction? How are the courts applying
traditional jurisdictional concepts to cases
involving Internet transactions?
What is the difference between a trial court and
an appellate court?
What is discovery, and how does electronic
discovery differ?
What are three alternative methods of resolving
disputes?
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
2
The Judiciary’s Role
in American Government
Judicial Review was established by the
U.S. Supreme Court in Marbury v.
Madison (1803) where Chief Justice
Marshall wrote:
• “It is emphatically the province and
duty of the judiciary to say what the
law is….”
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3
Jurisdiction
Jurisdiction:
“Juris” (law) “diction” (to
speak) is the power of a court to hear a
dispute and to “speak the law” into a
controversy and render a verdict that is
legally binding on the parties to the
dispute.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
4
Jurisdiction Over Persons
Also called “in personam” jurisdiction.
Power of a court to compel the presence
of the parties (including corporations) to
a dispute to appear before the court and
litigate.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
5
Jurisdiction Over Property
Also called “in rem” jurisdiction.
Power to decide issues relating to
property, whether the property is real,
personal, tangible, or intangible.
A court generally has in rem jurisdiction
over any property situated within its
geographical borders.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
6
Long-Arm Statutes
Courts use long-arm statutes for nonresident parties based on “minimum
contacts” with state.
See International Shoe Co. v. State of
Washington (1945).
“Corporate Contacts”: usually
jurisdiction in the state it was
incorporated, principal place of
business, places goods in stream of
commerce or actively advertises.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
7
Jurisdiction over Subject Matter
This is a limitation on the types of cases
a court can hear, usually determined by
federal or state statutes.
For example, bankruptcy, family or
criminal cases.
General (unlimited) jurisdiction.
Limited jurisdiction.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
8
Original and
Appellate Jurisdiction
Courts of original jurisdiction is where
the case started (trial).
Courts of appellate jurisdiction have the
power to hear an appeal from another
court.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
9
Jurisdiction of Federal Courts
“Federal Question” cases in which
the
rights or obligations of a party are
created or defined by some federal law.
“Diversity” cases where:
The parties are not from the same state, and
The amount in controversy is greater than
$75,000.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
10
Exclusive vs. Concurrent Jurisdiction
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11
Jurisdiction in Cyberspace
“Sliding Scale” Standard.
Passive
Website
No
Yes
Substantial
Business
Interaction
International Jurisdictional Issues.
Yahoo, Inc. v. La Ligue Contre La Racisme et
l’Antisemisme (2006).
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
12
Venue
Venue is concerned with the most
appropriate location for the trial.
Generally, proper venue is whether the
injury occurred.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
13
Standing to Sue
In order to bring a lawsuit, a party must
have “standing” to sue.
Standing is sufficient “stake” in the
controversy; party must have suffered a
legal injury. There must be a “justiciable
controversy.”
CASE 3.1 Oregon v. Legal Services Corp.
(2009). Court dismissed case because Plaintiff
did not have standing, was not legally injured.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
14
State Court System (Texas)
Texas Courts
Ct. Criminal
Appeals
Supreme
Court
Court of
Appeals
District Court
County Court
Municipal
Court
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Justice
Court
15
State Trial Courts
“Courts of record”- court reporters.
Opening and closing arguments.
Juries are selected.
Evidence, such as witness testimony,
physical objects, documents, and
pictures, is introduced.
Witnesses are examined and crossexamined.
Verdicts and Judgments are rendered.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
16
State Appellate Courts
Middle level of the court systems.
Review proceedings conducted in the
trial court to determine whether the
trial was according to the procedural
and substantive rules of law.
Generally, appellate courts will
consider questions of law, but not
questions of fact.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
17
State Supreme Courts
Also known as courts of last resort.
The two most fundamental ways to have
your case heard in a supreme court are:
Appeals of Right.
By Writ of Certiorari.
See the U.S. Supreme Court and the
Texas Supreme Court.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
18
Federal Court System
Federal Courts
U.S. Supreme
Court
Writ of Certiorari
to bring case
Circuit
Courts of
Appeals
13 U.S. Courts of
Appeal
U.S. District
Courts
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Equivalent to
State Trial Court
19
Exhibit 3.3 U.S. Courts of Appeal
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
20
Following a State Court Case
Pleadings.
Plaintiff’s Complaint.
Service and Summons.
Defendant’s Answer /Motion to Dismiss.
Pre-Trial Motions.
Motion for Judgment on the Pleadings.
Motion for Summary Judgment.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
21
Following a State Court Case
Discovery.
Depositions and Interrogatories.
Requests for Documents.
Requests for Admission.
Electronic Discovery.
Pre-Trial Conference.
Jury Selection (Voir Dire).
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
22
Following a State Court Case
At the Trial.
Opening arguments.
Plaintiff’s Case in Chief.
• Defense cross-examines Plaintiff’s witnesses.
Defense Case in Chief.
• Plaintiff cross-examines Defense witnesses.
Closing Arguments.
Motion for a Directed Verdict.
Post-Trial Motions.
Motion for J.N.O.V.
Motion for New Trial.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
23
Following a State Court Case
The Appeal.
Filing the Appeal.
• Briefs pointing out reversible error that require reversal of the
trial court’s verdict.
Appellate Review.
• Courts do not consider new evidence. Only consider briefs
and evidence presented at trial.
CASE 3.2
Evans v. Eaton Corp. (2008).
Appellate court must give deference to findings
of fact made by trial court even if a “better
decision-maker” should have been used.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
24
Courts Adapt to the Online World
Electronic Filing.
Courts Online (websites, court dockets).
Cyber Courts and Online Dispute
Resolution (Michigan legislation).
Online Dispute Resolution (ODR).
Negotiation.
Mediation.
Arbitration (employment contracts).
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
25
Alternative Dispute Resolution
Trials are a means of dispute resolution
that are very expensive and sometimes
take many months to resolve.
There are “alternative dispute resolution”
(ADR) methods to resolve disputes that
are inexpensive, relatively quick and
leave more control with the parties
involved.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
26
ADR
ADR describes any procedure or
device for resolving disputes other
than the traditional judicial process.
Unless court-ordered, there is no
record which is an important factor in
commercial litigation due to trade
secrets.
Most common: negotiation, mediation,
arbitration.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
27
Negotiation
Less than 10% of cases reach trial.
Negotiation is informal discussion of the
parties, sometimes without attorneys,
where differences are aired with the goal
of coming to a “meeting of the minds” in
resolving the case.
Successful negotiation involves
thorough preparation, from a position of
strength.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
28
Mediation
Involves a neutral 3rd party (mediator).
Mediator talks face-to-face with parties
(who typically are in different adjoining
rooms) to determine “common ground.”
Advantages: few rules, customize process,
parties control results (win-win).
Disadvantages: mediator fees, no sanctions or
deadlines.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
29
Arbitration
Many employment contracts have
binding arbitration clauses.
Settling of a dispute by a neutral 3rd party
(arbitrator) who renders a legally-binding
decision; usually an expert or wellrespected government official.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
30
Arbitration
Arbitration Clauses and Statutes.
Uniform Arbitration Act of 1955.
Federal Arbitration Act.
Issue of Arbitrability.
CASE 3.3 NCR Corp. v. Korala
Associates, Ltd. (2008). The arbitration
clause in the contract regarding software
development mandated arbitration of copyright
infringement claim.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
31
Arbitration Issues
Mandatory Employment Arbitration.
Generally clauses are enforceable.
Results may be unpredictable because
arbitrators do not have to follow
precedent or rules of procedure or
evidence.
Arbitrators do not have to issue written
opinions.
Generally, no discovery available.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
32
Other Types of ADR
Mini-Trial: Attorneys for each side
informally present their case before a
mutually agreed-upon neutral 3rd party
(e.g., a retired judge) who renders a
non-binding “verdict.” This facilitates
further discussion and settlement.
Expert evaluations.
Conciliation: 3rd party assists in
reconciling differences.
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
33
Providers of ADR Services
Non-profit organizations:
American Arbitration Association.
Better Business Bureau.
For Profit:
JAMS-ADR.com(Flash enabled).
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
34
Online Dispute Resolution
Also called ODR.
Uses the Internet to resolve disputes.
Still in its infancy but is gaining
momentum.
See, e.g., www.cybersettle.com .
© 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
35