... that the feds have the power to create courts.
Did you read it?
The CONSTITUTION (not Congress nor anyone else) is what created the US Supreme Court and gave it jurisdiction.
Article 3, Section 1 says, "The judicial Power of the United States shall be vested in one supreme Court ..."
That created the US Supreme Court. The SCOTUS is vested with the judicial power of the FEDERAL GOVERNMENT ("the United States").
Article 3, Section 2 says, "The judicial Power shall extend to all Cases, in Law and Equity, arising under this Constitution, the Laws of the United States, and Treaties made, or which shall be made, under their Authority; — to all Cases affecting Ambassadors, other public Ministers and Consuls; — to all Cases of admiralty and maritime Jurisdiction; — to Controversies to which the United States shall be a Party; — to Controversies between two or more States; — between a State and Citizens of another State [Modified by Amendment XI]; — between Citizens of different States; — between Citizens of the same State claiming Lands under Grants of different States, and between a State, or the Citizens thereof, and foreign States, Citizens or Subjects.
"In all Cases affecting Ambassadors, other public Ministers and Consuls, and those in which a State shall be Party, the supreme Court shall have original Jurisdiction. In all the other Cases before mentioned, the supreme Court shall have appellate Jurisdiction, both as to Law and Fact, with such Exceptions, and under such Regulations as the Congress shall make. "
Here, the CONSTITUTION (not Congress nor anyone else) defined the jurisdiction of the judicial power of the FEDERAL government (via the SCOTUS).
In addition, Congress was granted the power to create FEDERAL courts that are "inferior to the Supreme Court."
They CANNOT be state courts because the JURISDICTION is OUTSIDE of the state powers.
Think about a situation where one person sues another person in court, and both people live in the SAME state. This case is OUTSIDE the jurisdiction of the FEDERAL government because Article 3 defines what the fed's jurisdiction is, which does NOT include disputes between people in the same state (except for specific subjects that have to do with fed powers).
Also remember, they were not starting with a clean slate, here. The states already existed and created the Constitution via convention. They ratified it. And guess what? They ALREADY had state courts and state laws.
The Constitution only created the Supreme Court, defined its jurisdiction as those things NOT within a particular state, and gave Congress the power to create additional courts that are WITHIN the jurisdiction of the feds (not to create all courts -- only certain courts).
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