Certain courts operate with a restricted scope of authority, empowered to hear only specific types of cases. This restricted competence is determined by factors such as subject matter, geographic location, or the monetary value of the claim. An example of this is a bankruptcy court, which exclusively handles cases related to insolvency and debt restructuring. Similarly, small claims courts are confined to adjudicating disputes involving relatively modest sums of money.
The existence of courts with curtailed power is essential for the efficient administration of justice. It allows for the development of specialized expertise among judges and court staff, resulting in more informed and consistent rulings within specific areas of law. Furthermore, it can streamline the judicial process, reducing caseloads in courts with broader jurisdiction and providing a more accessible and affordable forum for resolving certain types of disputes. Historically, this framework has evolved to address the increasing complexity of legal issues and the need for specialized dispute resolution mechanisms.