A court can only hear a case over which it has jurisdiction. Jurisdiction is the authority of a court to hear and determine disputes. Jurisdiction can be limited in several ways. Some courts are limited by subject matter jurisdiction. They can hear only cases involving certain types of controversies, such as tax disputes or juvenile matters. Other courts are limited by the amount of damages being sought or the penalty to be assessed. The small claims courts discussed later in this chapter are limited by such jurisdiction. The jurisdiction of all courts is limited geographically. A court may not decide a legal dispute unless it has personal jurisdiction over the defendant. Personal jurisdiction generally does not exist unless the defendant has some close connection with the territory where the suit is brought.

HYPOTHETICAL: Connie, a resident of Michigan, was visiting her grandmother in California. While dining at a restaurant, a light fixture fell and severely cut Connie's arm. Connie required surgery and several months of physical therapy before she was able to use her arm properly, and she still has residual damage. She sues the restaurant, asking for $500,000 to reimburse medical expenses, lost wages, and the permanent damage, and $500,000 for pain and suffering.

QUESTION: Where can the lawsuit be heard, and why? (HINT: See Page 31 of Law for Business (Barnes, 2012)).