State courts handle most criminal matters, family law matters such as marital disputes, real estate transactions, and contract disputes. Federal and state court systems also have certain specialized courts. For example, the federal court system has bankruptcy and tax courts. Similarly, many states have specialized traffic, family, probate, or small claims courts. Federal Courts Federal courts are divided into three levels.
District courts are the first level where a federal case is heard.
If one of the parties is dissatisfied with the result, that party may appeal to a second level court, one of the courts of appeals. There are thirteen of these intermediate appellate courts in the federal judicial system, each with jurisdiction over cases from certain geographic areas. The Court of Appeals for the Federal Circuit has national jurisdiction over specific types of cases, while the twelve other courts of appeals handle matters from specific regions. The courts of appeals are often referred to as circuit courts. If a party is dissatisfied with the result from one of circuit courts, the party may seek review by the Supreme Court.