Procedures
Broad discovery, jury trials and a strong settlement incentive
Federal civil litigation follows the Federal Rules of Civil Procedure. Wide pre-trial discovery and the availability of civil juries make American litigation unusually expensive, which is why the overwhelming majority of cases settle.
Key rules
- Federal courts need subject-matter jurisdiction: a federal question, or diversity of citizenship with more than $75,000 at stake.
- Each side normally bears its own legal costs regardless of outcome, unlike most of Europe.
- Limitation periods are set by state law and vary from one year to six for common claims.
Governing law
- Federal Rules of Civil Procedure (FRCP)
- Diversity jurisdiction (28 U.S.C. § 1332)
In practice
Because costs do not follow the event, a defendant facing a weak claim still faces real expense. This asymmetry drives early mediation in commercial disputes.