exclusive jurisdiction
Definition
Exclusive jurisdiction means that only one specific court has the legal authority to hear and decide a particular type of case. When a court has exclusive jurisdiction over something, no other court can step in and handle that same matter, even if a party would prefer a different court.
Example
Federal courts have exclusive jurisdiction over bankruptcy cases, so if your business needs to file for bankruptcy, you must go to federal bankruptcy court and cannot file in your local state court instead.
Watch Out
When you sign a contract, always check if it includes an exclusive jurisdiction clause, because that clause forces you to settle any disputes in a specific court that may be in another state, making legal action expensive and inconvenient.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.