Lawsuit Information Center
In the U.S., we have 2 different levels of courts: federal courts and state courts. This page will attempt to explain the difference between federal and state courts.
State Courts
State courts are courts of very general jurisdiction. They have the authority to hear and decide almost any legal issue within the general purview of the state’s authority — which is basically everything. Anything that is governed by state statutory law (as opposed to federal law) is within the authority and jurisdiction of state courts. This includes everything from criminal offenses, divorce, estates, and more.
The same goes for civil cases governed by “common law.” State courts (generally) have the ability to resolve disputes between citizens of the state or for matters that occur within a state. States also enact certain civil laws, which State courts have jurisdiction over as well. And of course, each state has its own common law, or judge-made law, which is applied by state judges.
State Court System Structure
Almost all states have multiple levels and types of courts within their judicial system. Although each state is somewhat different in the way the name, organize and administrate their system, there is a general blueprint that most states follow. Most states have at least 2 levels of trial courts or general jurisdiction courts. The lower level handles smaller matters, while the higher level trial court has jurisdiction over more serious criminal matters and civil cases involving higher dollar amounts. Most states also have specialty courts that handle things like wills and estates.
State court systems also have at least one, and usually two, levels of appellate courts. The highest appellate court in the state is usually called the state supreme court (e.g., the California Supreme Court), and it has final authority over all matters.
Federal Courts
In contrast to state courts, federal courts have limited subject matter jurisdiction. Federal courts only have jurisdiction over limited matters involving federal law, the federal government.
Federal courts have limited jurisdiction, meaning they can only hear cases authorized by the United States Constitution or federal statutes. This “original jurisdiction” is granted by the Constitution or Congress. Federal courts have jurisdiction over:
Federal Questions: Cases involving the United States government, the Constitution, or other federal laws.
Diversity of Citizenship: Disputes between parties from different states or countries, where the claim meets a specified monetary threshold for damages.
Federal Criminal Cases: Cases involving federal offenses such as piracy, treason, counterfeiting, drug trafficking, securities law violations, and interstate commerce violations.
Bankruptcy Cases: Matters involving personal, business, or farm bankruptcy, which cannot be filed in state court. Federal courts have total jurisdiction over all bankruptcy matters.
Structure of Federal Courts
The federal court system has 3 tiers: District Courts, Circuit Courts, and the U.S. Supreme Court. Currently, the federal court system consists of 94 district-level trial courts and 13 courts of appeals beneath the Supreme Court.
Supreme Court
The U.S. Supreme Court is the highest court in the United States, established by Article III of the U.S. Constitution. This article also authorized Congress to create a system of lower courts. The Supreme Court is highest court in the land and it has the final say on all matters involving federal law and the Constitution.
Circuit Courts of Appeal
There are 13 appellate courts below the U.S. Supreme Court, known as the U.S. Courts of Appeals. The 94 federal judicial districts are organized into 12 regional circuits, each with its own court of appeals. These appellate courts review cases to ensure that the law was correctly applied in the trial courts. Appeals courts consist of three judges and do not use juries.
A court of appeals handles challenges to district court decisions within its circuit and appeals from federal administrative agencies’ decisions.
Additionally, the Court of Appeals for the Federal Circuit has nationwide jurisdiction to hear specialized cases, such as those involving patent laws, and appeals from the U.S. Court of International Trade and the U.S. Court of Federal Claims.
District Courts
The United States has 94 district or trial courts known as U.S. District Courts. These courts resolve disputes by establishing facts and applying legal principles to determine the outcome.
A trial court includes a district judge who presides over the case and a jury that decides the case. Magistrate judges assist district judges in preparing cases for trial and may also conduct trials in misdemeanor cases.
Each state, as well as the District of Columbia, has at least one district court. Additionally, each district includes a U.S. bankruptcy court as part of the district court. The four U.S. territories—Puerto Rico, the Virgin Islands, Guam, and the Northern Mariana Islands—also have U.S. district courts that handle federal cases, including bankruptcy cases.
There are two special trial courts as well: the Court of International Trade, which handles cases involving international trade and customs laws, and the U.S. Court of Federal Claims, which addresses most claims for monetary damages against the U.S. government.