BUSINESS LAW 280 - EVENING CLASS 2

BUSINESS LAW 280 - CIVIL PROCEDURE
CHAPTER TWO

I. INTRODUCTION TO CIVIL PROCEDURE :

A. Before filing a lawsuit, there are preliminary considerations.....

B. I call it the TWO J's:

1. Justiceability

2. Jurisdiction

III. JUSTICEABILITY - THE BASIS TO BRING LAWSUIT: Now that we understand where the law comes from and how it is applied, let's learn how to sue people!!

A. PRELIMINARY CONSIDERATIONS BEFORE LAWSUIT IS FILED:

Is the case JUSTICIABLE?: A court won't decide a case unless it is Justiciable, ready to be decided: 2 conditions which must exist

1. Real Conflict:

a. Ripeness

(1) Example: Line Item Veto: Last year when Congress gave President Clinton the line-item veto, several members of Congress challenged the law in the courts on constitutional grounds, but he Supreme Court rejected the law suit, based on Ripeness. Why?

--- He hadn't used it yet. No conflict or damage yet!

b. Mootness -- Can't file a law suit if it's too late for the court to resolve the conflict.

--- Roe v. Wade - Why did Mootness almost alter the result?

2. Parties Affected:

a. Must be Advesaries: Feigned or collusive suits are not allowed.

b. Must have Standing: If I go up to Mr. A. and hit him across the face, if Ms. B. sues me for it, can she maintain that kind of legal action?

-- Of course not...She is not the party affected.

c. Compare: Class Actions are allowed.

B. Once we identify whether a lawsuit is appropriate..we now have to decide WHERE....

IV. JURISDICTION:

A. What is JURISDICTION? (power of Court to decide a case)

1. Can you get divorced in Small Claims court? No

2. Can you go to California Supreme Court to evict your roomate for nonpayment of rent? No

3. Types of Jurisdictional questions to decide...

        (1) Federal vs. State Court Jdx.
        (2) Personal Jdx.
        (3) Subject Matter Jdx.
        (4) Venue

B. FEDERAL COURT JURISIDICTION - Fed Courts have power over

what kinds of cases?

1. Federal Questions and Diversity of Citizenship

2. FEDERAL QUESTIONS: Involves an issue applying laws of U.S. (e.g Const. or Federal Statute)

3. DIVERSITY: IF you have residents of different states suing each other.

You must have, however...

a. Opposing parties domiciled in different states (if any one Plff. & Deft. are in the same state, then there is NO Fed. Jdx.)

b. AND, amount in controversy > $ 75,000.00

c. To determine DOMICILE, look at the INTENT OF THE PARTY TO PERMANENTLY RESIDE IN STATE.

d. CORPORATION has domiciled in which states?.....

(1) STATE OF INCORPORATION

and

(2) PRINCIPAL PLACE OF BUSINESS

C. What about STATE COURTS JDX. - 3 basic grounds exist for Personal Jdx.

1. Presence of D.: If the D. is present in the state we can nail him, unless...

--- D. a witness there under subpoena OR ---- Taken there by force

2. Domicile of D.: Where the D. lives...even if absent at the time served, as long as they

intend to come back

3. Consent of D.:

a. Express: I get Mr. ____________'s lawsuit in the mail, and I show up in court and answer. Sometimes people agree AHEAD of time to Jdx. when they sign a contract with a jdx. clause.

b. Implied Consent: LONG ARM STATUTE: Get's sticky ---- by engaging in activities in the state Defendant is "impliedly consenting" to be sued in the state.

(1) Let's look at KNOWLES Case on P. 22

(2) MINIMUM CONTACTS: Well, as you might imagine, these LONG ARM STATUTES that states were passing, were getting out of hand. So US Supreme Court came along and said, WAIT A MINUTE, there is this thing called the CONSTITUTION. And it has a clause that guarantees individuals DUE PROCESS. So Long Arm Statutes can't abuse their power and jurisdiction must be exercised REASONABLY. The test they set up is MINIMUM CONTACTS.

c. WHAT IS A LONG-ARM STATUTE? Think of a long arm reaching across U.S. to pluck me out of Florida. Usually 2 types of activities = personal jdx.:

(1) Business: Transaction of any business in state

(2) Injury: Commission of any act causing injury in state

4. An alternative to Personal Jdx. - In Rem Jdx.

a. Defendant owns property in the state.

b. The lawsuit must relate to that property.

D. SUBJECT MATTER JURISDICITON: States will not get involved in certain disputes even if personal jurisdiction OK. Involves two issues:

1. But first let's look at CASE PROBLEM NO. 2

2. Subject of the Lawsuit - E.g. Divorce cases must go to "superior court" while most eviction cases must go to "municipal court".

3. Original Jurisdiction - Amount in Controversy - In California

(i) Small Claims: 0-5000

(ii) Municipal: 0-25,000

(iii) Superior: over 25,000

E. Next step once we determine State or Federal, then Personal, then Subject Matter & Original, we reach our final decision: VENUE

1. What is VENUE? ---Choice of territorial division or geographic location court.

2. California

a. County: LA, Orange, Ventura, etc.

b. District:
--Superior Court: Central and then Branch Courts
--Municipal: Many small Branch courts -- from Malibu, to Catalina

3. Usual Requirements of Venue:

a. Residency: Usually of Deft. --OR--

b. Where Claim Arose: Where acct. happened, where contract was signed, where business was transacted

c. Corporation: Anywhere doing business.

F. REVIEW:

1. What is jurisdiction? power to decide a case - a 5-prong question:

a. Fed. or State System - Fed. ? or Diversity/75K

b. In Personnam or Rem - Cover the person/property

c. Subject Matter - Criminal, Tax, Divorce, etc.

d. Original - Municipal or Superior

e. Venue - LA Co., Ventura County, Pomona v. Bell

2. Let's look at CASE PROBLEM NO. 3

3. Let's look at CASE PROBLEM NO. 4

4. Let's look at CASE PROBLEM NO. 10

V. Now we're ready to sue: First Step in a Lawsuit is PLEADINGS: What are pleadings? (Formal written statements of parties)

A. Let's List them -- What are the pleadings that are filed in a lawsuit:

P 1. Complaint (and Summons)

D 2. Answer

D 3. Cross-Claims:

a. Federal: Counterclaim

b. State: Cross Complaint

c. These are either COMPULSORY or PERMISSIVE.

P 4. Answer or Reply:

D or P 5. Amendments to Pleadings:

B. SUMMONS & COMPLAINT:

1. What is the difference between Summons & Complaint

---S= Notice of Suit ---C=Content of Suit (Causes of Action or Counts)

2. SUMMONS: Most provide 20 or 30 days to respond (compare with UD= 5 days)

3. Statute of Limitations: What is it?

Personal Injury - One year

Contract - 2 or 4 yrs.

Fraud - 3 yrs.

4. Complaint: Contains three things

a. Caption: ID Parties, Court, etc.

b. Causes of Action

c. Remedy or Prayer:

(1) Equity Something else

(2) Law: Money

5. Service: Must be given to Defendant

a. Personal: Hand it to the Defendant. Does Deft. have to sign? (no)

b. Substituted

c. Publication

d. What about registered mail: NO GOOD for in state res.

C. ANSWER: Contains

a. Admissions - denials

b. To understand next part of an Answer, let's look at:

c. Affirmative Defenses

D. CROSS CLAIMS: Deft. counterclaims or cross-complaints:

a. Compulsory: If related to same facts as Complaint -- you must file it NOW or lose that right forever.

b. Permissive: If unrelated to the facts of Complaint, the Defendant is permitted to file the cross complaint now OR may wait and do it later in a separate lawsuit.

c. Must be done at time one answers -- OK later but only after getting court permission

F. AMENDMENTS: Making a change in your pleading.

1. Once as a matter of course.

2. After that by court motion.

VI. PRE-TRIAL PROCEEDINGS:

A. Purpose of Pre-Trial Proceedings:

1. Discovery of Relevant Facts

2. Narrowing Issues

3. Promote Settlement

B. DISCOVERY: What is it? What are the types of Discovery?

1. Interrogatories

2. Requests for Admissions

3. Depositions 2 purposes...

a. ---Learn testimony of party/wit. for trial

b. ---Credibility

4. Production of Documents -- Can request truck

--- Of Party or outside witness

--- Can turn case around (Dodgers case)

C. PRE-TRIAL HEARINGS:

1. Arbitration & Mediation - Can help solve the case before trial.

2. Motions:

a. To attack the Complaint: (before Answer is filed)

(1) Demurrer - attacks the whole complaint (assumes facts in complaint are true, but there is still no legal case).

(2) Motion to Strike - Same line of attack, but only agains a portion of the complaint (not the whole thing).

b. Narrow Issues without trial: (After Answer is filed, but before Trial)

(1) Motion for Judgment on the Pleadings: Even if we accept everything in the complaint as true, still no case.

(2) SUMMARY JUDGEMENT The law and facts support a victory NOW without trial. (No triable issues of fact or law)

VII. TRIAL: Jury or Non-Jury: IF EITHER SIDES REQUESTS !!

----JURY = FACTS - JUDGE = LAW

A. JURY SELECTION PHASE

1. VOIR DIRE:

2. CHALLENGES:

a. For Cause

b. Peremptory

B. Opening Statements

C. Presentation of Evidence: Witnesses & Exhibits

1. Plantiff's Case in chief

2. Defendant's case in chief

3. Rebuttal

4. Rejoinder

D. SUMMATION (Closing Argument)

E. Jury Instructions

F. Jury Deliberation

G. Verdict

H. Motions: WHAT ARE SOME?

1. Directed Verdict or Nonsuit

2. Mistrial

3.Judgment NOV - NON OBSTANTE VERIDICTO

4. New Trial

I. Let's do CASE PROBLEM NO. 6

VIII. JUDGMENT AND APPEAL:

A. Courts:

Federal Level:

Courts of Appeal

United States Supreme

State Level:

Courts of Appeal

State Supreme Court

U.S. Supreme court

B. Appellate court will render a written opinion:

1. Majority

2. Concurring

3. Dissenting.

B. What will Appellate Court Do?

1. Affirm

2. Reverse & Remand

3. Modify

C: They do not hear new evidence. They only decide issues of law.

D. Res Judicata - civil equivalent of Double Jeopardy. Can't sue a person a second time about the same conflict once the first court decides the case.