Given this two different sets of laws we talked about last week, we have two separate court systems: The federal system and the state system. The federal courts interpret federal law; the state courts interpret their state’s laws. State courts are not allowed to interpret federal law except as to how it impacts state law. Federal courts, however, can pretend to be state courts in certain cases. If two parties are from different states AND the value of the suit is at least $75,000.00. If the federal courts are pretending to be state courts, they have to follow what state courts have said about their state law in the past.
Just like states are divided into counties with state courts in each one, the federal court system is split up. In Wisconsin, we have two federal court districts: Eastern (housed in Milwaukee) and Western (housed in Madison). If a party loses, it can appeal to the Court of Appeals. In the state system in Wisconsin, there is only one Court of Appeals in the state. In the federal system, however, there are courts in districts, called circuits. There are 13 circuits with the 50 states divided up among 11 circuits, 1 circuit specifically in Washington DC, and 1 specialty circuit. The specialty circuit is known mostly for its patent and trademark decisions, but also addresses admiralty and federal government contract disputes. In both cases, losers at the appeals court can go to the Supreme Court at either level.
So as you can imagine, different courts will sometimes decide issues differently. The Seventh Circuit will interpret the law one way, and the Second Circuit will decide the exact opposite. This is called a “circuit split.” When that occurs, all of the courts (and states) below that Court of Appeals will follow what its court says. That means that you can have two areas of the country following different interpretations. Sometimes, the interpretations are fairly close to each other so the difference is minimal. Other times, they are opposing, which can be confusing. That is often when the U.S. Supreme Court steps in and determines the supreme law of the land.
Other courts can defer to the decisions of the other circuits or find their arguments persuasive, but they are not required to go along with the decision of the other circuits. They are, however, required to go along with the U.S. Supreme Court’s decision. Same with state courts. State courts have to follow their state Supreme Court’s decisions and the U.S. Supreme Court’s decisions, but not other states or the federal system when it comes to their state laws. They do have to follow their circuit’s decisions regarding federal law.
In summary, each system of laws has its own court system. This can lead to different decisions being implemented in different areas of the country unless and until the U.S. Supreme Court tells us what the one controlling interpretation is.