AmNG Lecture 12

1. AmNG Lecture 12

2. Terms to Know • Diversity of Citizenship • Administrative Law • Tort Law • Economic or Real Damages • Non-Economic & Punitive Damages • Probate Law

3. Diversity of Citizenship • Diversity of CitizenshipCase: If both parties reside in different states and the matter in question exceeds $75000, then the Federal District Court hears the case. • Ex: If someone from Oklahoma were suing someone in New Mexico for a breach of Contract in a $100,000 deal, the issue would be settled in federal court. • Why do you think the framers wanted the federal courts to decide these issues, why not the respective state courts?

4. Different Types of Civil Disputes Contract Law: Dispute dealing with a breach of mutually agreed action or inaction. Ex: You pay to have your car worked on and the vehicle is not property repaired. Family Law: Disputes arising out of divorce decrees, custody battles, or child emancipation. Property Law: Disputes pertaining to the ownership or possession of property, both real, personal or intellectual.

5. Tort Law • Torts: Any type of civil wrong (except for contracts) where people sue as a result of negligence or intentional activity. • Ex: I throw a rock and put out someone’s eye, they can sue me for economic damages (Lost wages, medical costs, etc.) non-economic damages (Pain and Suffering) and punitive damages (punishment) . • Economic Damages: Compensation for lost or potentially lost assets (lost wages, medical costs, cost of property replacement, etc.) • Non-Economic Damages: Compensation for pain and suffering. • Punitive Damages: Subjective compensation to punish or alter the behavior of a plaintiff

6. Other Law • Administrative Law: (sometimes called either Business or Tax law) Legal negotiation of the enforcement or application of tax, business or other bureaucratic regulations. • Ex: Someone is being charged with not paying their employees adequate overtime pay, a charge which they wish to dispute, the dispute could be tried in a Administrative law court. • Probate: The settling of wills and estates after someone passes away. • Ex: Someone passes away without a will, then the probate courts use statutes and precedent to determine who will acquire assets, children, and debts.

7. Civil Court Cases Can be decided by judge or jury. A Civil case is between parties rather than state against defendant. If the matter at hand deals with a matter less than $5000 in value it is typically taken care of by the Justice of the Peace Court with a with just a judge. (Sorta’ like Judge Judy; Small Claims Court) Matters greater that $5000 are tried in district court with a 12 member jury or bench trial. Jury requirements are a lot looser (only 3/4 of jurors needed for verdict, unlike criminal trials where the ruling has to unanimous) Verdicts in civil trials can result in various outcomes such as monetary judgments, cease and desist orders, or repossession of custody Examples of Civil Trials are Divorces, Custody battles, land or title disputes, territorial or rights violations. Most civil suits are filed at the state level

8. Liebeck v. McDonald's Restaurants • Stella Liebeck purchased a $0.94 cup of coffee from a Albuquerque, NM McDonald’s. • While trying to mix cream and sugar in the coffee, Liebeck spilled the coffee on her lap. • The hot coffee soaked into her pants and caused 3rd degree burns on her thighs, buttocks, and groin. • She was taken to the hospital where she received intensive burn treatment and skin grafts. • Liebeck attempted to settle with McDonalds by asking for $20,000 to cover medical costs, but McDonald’s refused. • In the legal suit, it was found that McDonalds had over 700 complaints regarding the heat of their coffee (190 - 205 degrees) yet did nothing to alter the situation. • The jury awarded her monetary damages of $200,000 and punitive damages of $2 Million Dollars. A judge reduced the punitive damages to $480,000 dollars.

9. Liebeck v. McDonald's Restaurants • Do you think the Plaintiff was right sue McDonalds for the injuries she received? • Did the jury decide the case correctly? • If you were a juror, how much would you have awarded her in this case in punitive damages? Why? • Tort Reform: Proposed changes in the civil justice system that would reduce the amount of tort litigation or the amounts of monetary judgments. • It is important to remember that anyone can file a lawsuit, it does not mean they are going to win. Often we hear about outrageous cases being presented to the court without knowing that they are very often thrown out early on. • It is also important to remember that there are a lot of (false) urban legends about frivolous law suits such as the Winnebago cruise control case or the burglar who got injured breaking into someone's house and successfully sued the owner.

10. Today’s Terms • Diversity of CitizenshipCase: If both parties reside in different states and the matter in question exceeds $75000, then the Federal District Court hears the case. • Administrative Law: (sometimes called either Business or Tax law) Legal negotiation of the enforcement or application of tax, business or other bureaucratic regulations. • Probate: The settling of wills and estates after someone passes away. • Torts: Any type of civil wrong (except for contracts) where people sue as a result of negligence or intentional activity. • Non-Economic Damages: Compensation for pain and suffering. • Punitive Damages: Subjective compensation to punish or alter the behavior of a plaintiff