When Is a Case a Federal Case?

William H. ShawnCo-Managing Partner, ShawnCoulson

At about the time the United States was founded, there was great disagreement among the Founding Fathers about the proper scope, size and jurisdiction of the federal judiciary. In view of this controversy, the Founding Fathers resolved to limit the jurisdiction of the federal courts.

An Independent Judiciary

The Founding Fathers felt an independent federal judiciary was essential to ensure fairness and equal justice for all citizens. So they drafted the Constitution to promote judicial independence in two major ways:

1. Federal judges are appointed for life, and they can be removed from office only through impeachment and conviction by Congress for “Treason, Bribery, or other high Crimes and Misdemeanors.”

2. The compensation of federal judges “shall not be diminished during their Continuance in Office,” according to the Constitution, which means that neither the President nor Congress can reduce the salary of a federal judge.

These protections help judges decide cases free from popular sentiment and political influence.

— Source: U.S. Courts website

The federal court system is made up as:

  • The U.S. Supreme Court,
  • U.S. Courts of Appeals,
  • U.S. District Courts, and
  • Bankruptcy Courts.

While most lawsuits that are filed in the United States are filed in state courts, federal courts are important because of their prestige and the calibre of the federal judiciary. Take a look:

  • Federal courts have jurisdiction to hear only certain types of matters pursuant to federal statutes, treaties and the U.S. Constitution (commonly called a federal question). 

    For instance, federal courts have exclusive jurisdiction over the patent, copyright and bankruptcy laws, as well as other areas of so-called “concurrent jurisdiction,” such as the trademark, antitrust and civil rights laws where actions may be brought in either federal or state court.

  • Federal courts have “diversity jurisdiction.” These disputes involve citizens of two states where the matter in controversy exceeds $75,000. In addition, federal courts hear cases between two states and nationals of other countries and U.S. citizens.

Many litigants prefer to file in federal court because of the quality of judges and the uniform procedural rules. Federal judges are lifetime appointments, and for some people, this is viewed as minimizing the risk of bribery or patronage.