Overview of the U.S. Legal System

Overview of the U.S Legal System

• Constitution o Statutory law- written law
• You want to know the law, you look it up !!
• Written law deciphered by just looking it up !! o Common Law
• Legislators make the law, judges enforce it.
• Case law or precedent o Administrative Law (Agency regulations)
• Body of law that governs the activities of administrative agencies of government

• Note the interaction between law and facts o Law=judge ; Facts=jury (most of the time) o Civil (money) vs. Criminal law (jail time)
• People can sue each other for money but can’t put each other in jail, only the state has the right too.
• Civil law can include contracts and tort claims

• Claims in the U.S Legal System o Claim o Complaint o Service of process (important)
• So the defendant knows everything and can respond well
• Procedure employed to give legal notice to a person (such as a defendant) of a court or adminstrative body’s excercise of its jurisdiction over that person so as to enable that person to respond to the proceeding before the court. o Preliminary motions o Answer
• Short concise statements o Discovery
• One side brings evidence, other side brings their evidence and evaluate the evidence o Motions for summary judgment
• Trial o Selection of the jury o Opening statements o Plaintiff’s case in-chief o Defendant’s case in-chief o Plaintiff’s case in rebuttal o Summations (closing arguments) o Judge’s charge to the jury-tells jury the law o Jury deliberations-determination of facts and how law applies
• Questered- if its a high profile case
• Hung jury- jury unable to agree on verdict o Verdict o Judgment- loser can ask for jnov, new trail, remittitur (reduction in damages)

Appeals Process

• State trial Courts o State Appellate Courts
• State Supreme Court

• District Courts & Bankruptcy Courts o Courts of Appeal
• United States Supreme Court

Alternative Dispute Resolution (ADR)

• Similar to litigation but less formal
• Can consist of o Arbitration (like a trial without the judge) o Or Mediation (more caasual means to facilitate settlement)
• ADR is often provided for in contracts

Key Considerations in Navigating the U.S Legal System

• Where’s the money ?
• What’s the role of insurance ?
• How comfortable are we with risk ?

Jurisdiction- Where and in what court will a case be heard ?

• Applies to both individuals and corporate entities
• Depends upon presence and activities
• State courts hear most cases
• Federal courts require federal question jurisdiction or diversity jurisdiction

Diversity Jurisdiction

• Requires o Citizens of different states AND o More that $75,000 at issue
• You need these requirements to get into Federal Court o Or violation of federal law

Civil Rights Act of 1964

• Prior to 1964- discrimination, especially racial, was rampant
• Terms to know o Protected class
• Race
• Color
• Religion
• National origin
• Note : not gender, age, or seuxual orientation ; not covered by civil rights act of 1964 o Covered establishment
• lodging facilities for transients (except bed and breakfasts of 5 or fewer rooms and occupied by the proprietor)
• dining facilities
• places of entertainment
• gasoline stations
• Note : don’t worry about interstate commerce requirement o Unitary Rule
• Where a covered facility is located within a noncovered business, both the covered and noncovered business are subject to the act o Private clubs
• Civil Rights Act does not apply to private clubs, but such clubs must bonafide and selective admission requirements o What is actionable ?
• The civil rights act pertains to dicrimination in places of public accommodation
• Individuals are only guaranteed the right to enter a covered facility and receive service. Bad service isn’t covered. o Remedies
• The Civil Rights Act provides for injuctive relief and attorney’s fees
• Injuctive relief is anything thats not monetary

American with Disabilities Act

• An individual with a qualifying disability is entitled to a reasonable accommodation
• Can be enforced via private suit or by the Department of Justice (goes after big fish/deep pockets).
• Even individuals in protected classes have to follow the rules

Contracts

• Contract formation issues are evaluated in light of the view of a reasonable, objective person
• Elements of a contract o Capacity (of age and sound mind) o Offer o Acceptance o Consideration
• Offer o Must be capable of acceptance o Acceptance which does not match the offer is considered a counteroffer
• if you have an acceptance and their is a counteroffer, there is no obligation, no binding contract in place. o Consideration
• Can be something tangible
• Can also be something intangible that has value
• Doing something
• Not doing something
• The Statute of Frauds o Some contract must be in writing o For our purposes, just watch for contracts :
• For the sale of goods over $500
• Tangible products
• Contracts not capable of being performed within one year
• Parole Evidence Rule o Dictates what kind of evidence can be used to help interpret a written contract o is designed to keep out prior oral agreements, but will be allowed where contract is ambiguous
• Mistakes and misrepresentations o Ask what a reasonable/objective person would understand under the circumstances
• Unilateral mistake o No basis to avoid contract
• Mutual mistake o Contract is voidable by either party
• Trade usage o trade usage is a term used in contract law to interpret ambiguous terms according to common business practices the parties should reasonably be able to rely upon.
• Breach-failure to perform o Entitles non-breaching party to compensatory damages (must be foreseeable and reasonably certain- especially difficult in hotel context)
• Consequential Damages= lost profits
• Duty to mitigate- especially important and promblematic in hotel industry
• Punitive damages- are meant to punish where defendant’s conduct has been willful

Week 4

• Negligence o Elements
• Duty- usually a duty to act reasonably
• Breach of duty
• Proximate cause
• Damages o There is generally no duty to come to someone’s aid in an emergency
• Illinois does not have a Good Samaritan Statute but does apply
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