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What are the advantages and disadvantages of litigating business disputes in federal vs. state courts?

Federal courts offer the ease of consistency through the set of nationwide rules that they follow making them more predictable. They also have more experienced judges and are usually faster compared to their more-packed counterparts, state courts. 

Some drawbacks that federal courts have are their stricter procedures on what evidence is allowed and how cases are handled. Their filing fees also tend to be higher, and not all cases qualify to be tried. Federal courts typically only hear cases involving federal laws, disputes over $75,000 between parties from different states, or constitutional issues.

State courts are more accessible, with quicker filing time and fewer procedural hurdles. They usually cost less since filing fees and litigation expenses are usually lower than federal courts.

Since state laws do tend to vary, it might be harder to predict the outcomes. The judges might also be biased towards a company based in their state versus a company that’s from out of state. Additionally, overcrowded state courts can lead to long delays in getting a resolution.

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