The US legal system has federal and state courts, with federal courts only hearing certain types of cases. There are specialized federal courts, district courts, courts of appeals, and the Supreme Court. Federal lawsuits can be filed for cases with a diversity of citizenship or a federal issue. Federal courts generally apply federal law, except in diversity cases where state law may be applied.
In many countries, the legal system is divided into two basic judicial systems: federal and state. The jurisdiction of the federal courts will vary from country to country. In the United States, federal courts are not courts of general jurisdiction, meaning that only certain types of cases or matters can be brought in a federal lawsuit. In the United States, federal district courts can only hear cases where there is a diversity of citizenship or there is a federal matter.
The federal judicial system in the United States consists of specialized courts that hear only particular matters, such as bankruptcy court or tax court, as well as courts of first instance known as district courts that hear general cases and criminal matters. Above the District Court level are the Courts of Appeals and finally the Supreme Court of the United States. A federal lawsuit must be filed on a trial basis in one of the many district courts found throughout the states.
The first type of case that can be filed as a federal lawsuit is a case where there is a diversity of citizenship. In order for a civil dispute of this nature to be filed in federal court, the parties must be citizens of different states. There is also a minimum dollar amount that must be litigated for this type of federal lawsuit. As of 2011, the amount in dispute must exceed $75,000; however, the minimum dollar amount changes to reflect the rate of inflation over the years. Many lawsuits in which the defendant is a business or corporation are filed in federal court under the diversity rule.
The other type of lawsuits that can be filed in federal court are suits that have a federal issue at the heart of the case. Lawsuits between two or more states and lawsuits involving ambassadors or government officials are examples of cases filed in federal court under the federal matter rule. In addition, intellectual property, antitrust, admiralty, and securities lawsuits must all be filed as federal lawsuits in federal district court.
Within the United States legal system, federal courts generally apply federal law to cases that come before the courts. Although all law in the United States is decided under the umbrella of the US Constitution, states have some autonomy to legislate as long as the laws do not violate the Constitution. The exception to the general rule that a federal lawsuit will be decided based on federal law is when the lawsuit is a diversity case. A diversity case may actually be based on an alleged violation of state law, in which case the federal court must apply state law when making its decision.
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