Definition - What does Federal Court mean?
A federal court is a court that works under the federal court system and hears cases of almost every type, including criminal and civil cases falling within its jurisdiction.
The authority and power possessed by federal courts are often limited. They also can’t function out of their jurisdiction. Federal statutes and the Constitution create these courts and define their authorities and power.
Justipedia explains Federal Court
Federal courts include trial courts, the Supreme Court, district courts and other courts. The system also includes special courts such as tax, bankruptcy, veterans' appeal and claims (filed against the government).
Federal courts may also hear cases in which parties from two different states are in a dispute. Such a dispute must have damages worth over $75,000 for it to become a federal matter. At that point, it becomes known as diversity of citizenship.