Definition:
Jurisdiction is the authority of a court to hear cases and issue orders.
How Does Jurisdiction Work?
When someone files a civil lawsuit as a plaintiff, they have the responsibility to ensure that the court they are presenting their case in has jurisdiction. If the court does not have jurisdiction over the defendant (the party being sued) or the reason for which they are being sued (the claim or issue), this could be grounds for dismissing the case or transferring it to another court.
Types of Jurisdiction
Jurisdiction is divided into two types: personal jurisdiction and subject-matter jurisdiction. For jurisdiction to be valid, both types must be present.
Personal Jurisdiction
For a court to have personal jurisdiction, the defendant must either reside in that state or have “minimum contacts” in the state where the lawsuit is filed. The concept of personal jurisdiction is based on the principle of fairness and hinges on the idea of whether the defendant could reasonably expect to be pulled into court in a particular state.
Subject-Matter Jurisdiction
Subject-matter jurisdiction relates to a court’s ability to hear cases involving certain types of legal claims. There are many types of courts at the trial level, including criminal court, civil court, small claims court, probate court, bankruptcy court, and family court. In some cases, it will be clear which court should hear your claim, but in others, the plaintiff will need to present their case to a court authorized to adjudicate the claim under the relevant law in the state where the lawsuit is filed.
Understanding Jurisdiction as a Small Business Owner
Operating a small business can open the door to liability in many areas. If you are sued, or if you sue someone else, or if legal documents are served to you, you should consult an attorney. However, some of the most common courts you may find yourself in include the following:
Civil Court
Every state has its own civil court, and there is also a federal court system for civil matters known as the United States District Court. You may find yourself in civil court for cases such as:
- Contract disputes
- Employment and labor law issues
- Personal injury claims
- Property disputes and damage to property
- Landlord-tenant cases
- Probate and administration (if a business owner has died or become incapacitated and their business or assets needed to be managed by someone else or distributed to heirs)
Small Claims Court
Small claims court is a branch of civil court. However, it is designed to be more accessible to users and often allows them to seek legal compensation without having to pay attorney fees.
Small claims courts set a maximum amount you can sue for; for example, in New York and California, you can file a claim up to $10,000.
It is essential to check your state’s laws if you, as a business owner, plan to file a lawsuit in small claims court.
U.S. Tax Court
The U.S. Tax Court hears cases where taxpayers dispute tax notices they have received from the Internal Revenue Service. These claims may involve disputes related to deficiency notices, notice of determinations, worker classification issues, and the penalty amount for reported amounts. You may also choose a more straightforward process in the U.S. Tax Court – similar to small claims court. However, decisions made under this jurisdiction cannot be appealed by the taxpayer or the Internal Revenue Service.
It should also be noted that matters involving the Internal Revenue Service and federal taxes can also be brought before federal district courts. Moreover, state and local tax issues must be addressed by state courts or appropriate administrative agencies.
Court
Bankruptcy
If your company is facing financial difficulties, you may find yourself in bankruptcy court. Bankruptcy proceedings are always conducted in federal bankruptcy courts.
Source: https://www.thebalancemoney.com/what-is-jurisdiction-in-lawsuits-398309
“`css
}@media screen and (max-width: 480px) {
.lwrp.link-whisper-related-posts{
}
.lwrp .lwrp-title{
}.lwrp .lwrp-description{
}
.lwrp .lwrp-list-multi-container{
flex-direction: column;
}
.lwrp .lwrp-list-multi-container ul.lwrp-list{
margin-top: 0px;
margin-bottom: 0px;
padding-top: 0px;
padding-bottom: 0px;
}
.lwrp .lwrp-list-double,
.lwrp .lwrp-list-triple{
width: 100%;
}
.lwrp .lwrp-list-row-container{
justify-content: initial;
flex-direction: column;
}
.lwrp .lwrp-list-row-container .lwrp-list-item{
width: 100%;
}
.lwrp .lwrp-list-item:not(.lwrp-no-posts-message-item){
“`
}
.lwrp .lwrp-list-item .lwrp-list-link .lwrp-list-link-title-text,
.lwrp .lwrp-list-item .lwrp-list-no-posts-message{
};
}
Leave a Reply