State Courts vs. Federal Courts

“You must first enable the government to control the governed; and in the next place oblige it to control itself.” James Madison, Federalist No. 51, 1788

The framers of the U.S. Constitution wanted the federal government to have only limited power. Therefore, they limited the kinds of cases federal courts can decide. Most laws that affect us are passed by state governments, and thus state courts handle most disputes that govern our daily lives.

Federal courts also serve an important role. They defend many of our most basic rights, such as freedom of speech and equal protection under the law.

This is the fundamental idea behind Federalism, which means a government in which power is divided between one national government and other, smaller state or regional governments.

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The new video unit - Comparing State and Federal Courts - will help you learn even more on this topic.

Dual Court System

Jurisdiction of the Courts: State vs. Federal

State Courts

General Jurisdiction
State courts are courts of "general jurisdiction". They hear all the cases not specifically selected for federal courts. Just as the federal courts interpret federal laws, state courts interpret state laws. Each state gets to make and interpret its own laws. This helps the states retain power, and makes sure that the national government does not become too strong.
Types of Cases
About 90% of all the cases heard in the American court system happen at the state level. Examples include:
- A crime that is a violation of state law. Most criminal activity falls in this category, such as robbery, assault, murder, and many drug-related crimes.
- A controversy arising out of the state constitution or other state laws.
- A case in which the state is a party, such as state tax violations.
- Most real estate cases, malpractice, personal injury cases, and contract disputes.
- All family, divorce, custody, inheritance and probate cases.
- Most traffic and juvenile cases.

Federal Courts

Limited Jurisdiction
As the framers wrote the Constitution, some feared that the federal courts might threaten the independence of the states and the people. To combat this fear the framers set up a federal court system that can only hear cases in special circumstances. We call this having“limited jurisdiction.” Since the federal courts can only hear certain kinds of cases, most of the day-to-day cases that courts deal with happen in state courts.
Basically, federal courts hear only 2 types of cases; those that raise a "federal question" and those involving “diversity of citizenship".
Federal Question Cases
These cases involve the U.S. Government, the U.S. Constitution or other federal laws. Examples include:
- A crime that is a violation of federal law, such as bank robbery, drug cases, guns, or kidnapping.
- Civil cases based on federal laws, such as laws prohibiting employment discrimination, or laws regulating securities trading or competition (anti-trust).
- Cases involving interstate commerce or interstate criminal activity.
- A controversy arising out of the U.S. Constitution or other federal laws, such as a violation of a protection guaranteed by the Bill of Rights.
- A case in which the United States is a party, such as Social Security claims or federal tax violations.
- A controversy between two states.
- A case involving foreign governments such as international trade or foreign treaties.
- All bankruptcy, patent, copyright, Native American, and maritime cases.
Diversity of Citizenship Cases
These cases involve disputes between two parties not from the same state or country. Examples include:
- Between citizens of two different states.
- Between a U.S. citizen and a citizen of another country.
- NOTE: The case must involve a claim for at least $75,000 in damages – if not then it must be filed in state court instead.

More About State Courts
State court systems vary from state to state, and each is a little different. As you can see from the chart above, the state court system of Missouri is very similar to that of the federal courts. Both have trial courts at the lowest level to hear both civil and criminal cases. The Missouri circuit courts hear cases that arise under Missouri law or the Missouri Constitution. The federal district courts hear cases that arise under federal law or the U.S. Constitution. The second levels are the appellate courts, which hear appeals from the trial courts. Both the state and federal systems have a Supreme Court, to serve as the “court of last resort.”
Generally the state and federal systems do not overlap, but there are rare cases when a case might be appealed from the Missouri Supreme court to the United States Supreme Court. These cases usually involve the U.S. Constitution, and often deal with issue of civil liberties or civil rights.
States are allowed to make their own laws, so long as they do not violate the Constitution of the United States. This allows the states to make the laws that are important to their region and populace. Because all the states have their own state constitutions and legal codes, the states must have courts to interpret their laws, just as the national government must have courts to interpret federal law and the U.S. Constitution.
To find out more about the Missouri State Courts, visit their website by clicking here.

State Courts vs. Federal Courts

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Directions: Click START to begin the Student Challenge. For each case, decide whether it would be heard in the state or federal courts. Use the ARROW to move through the questions. Check your RESULTS at the end.

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Question 1

Case #1: Jan just lost her job. One day, while she is out looking for work, she takes a blouse and skirt from a store so that she will have something to wear to job interviews. Jan gets caught, is arrested and charged with shoplifting. Jan would be tried in the:

A	STATE COURTS
B	FEDERAL COURTS

Question 1 Explanation:

STATE COURTS: Jan would be charged with violating a state law – most laws about stealing, theft, or robbery are state laws, and most of these types of crimes occur within the boundaries of one state or one municipality. Thus when you break the law, you are arrested and charged with a crime in that location, and would be tried there as well.

Question 2

Case #2: Jim and his friends decide that they need money. They rob a bank in the town that neighbors theirs. Jim’s friend Bob drives the getaway car, while Jim, Ted, and Frank rob the bank. Jim and his friends get caught. They will be tried in the:

A	STATE COURTS
B	FEDERAL COURTS

Question 2 Explanation:

FEDERAL COURTS: Bank robbery is usually a federal crime because most banks are federally insured by the FDIC. Though the state where this crime occurred might have laws that would apply, if these crimes occurred while Jim and his friends were robbing a federally insured bank, it would put this under the jurisdiction of the federal courts.

Question 3

Case #3: Sarah buys a new bicycle over the internet. One week after receiving her bike, she is riding it, and the front wheel comes off, causing her to have an accident in which she is severely injured. Sarah lives in Indiana, but the company she bought the bike from is in Texas. Sarah wants to sue them, to recover the cost of the bike ($500.00), and to have them pay for her hospital bills ($2,000.00).

A	STATE COURTS
B	FEDERAL COURTS

Question 3 Explanation:

STATE COURTS: Disputes between people of different states can be settled in the federal courts, so that both parties get a fair trial. Since Sarah’s case involves such a small amount of money, she would file her suit in the state courts. If her suit had been for $75,000.00 or more she could have sued in the federal court system.

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Article III of the Constitution established the federal judiciary as one of the three equal branches of the federal government. This page explains the differences between the federal courts and the state courts, and shows how the federal courts are organized. The page also gives an introduction to the importance of judicial independence.

State Courts vs. Federal Courts

Dual Court System

Jurisdiction of the Courts: State vs. Federal

State Courts

General Jurisdiction

Types of Cases

Federal Courts

Limited Jurisdiction

Federal Question Cases

Diversity of Citizenship Cases

More About State Courts

State Courts vs. Federal Courts

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