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Answer
Usually in US District Court, although the US Supreme Court may exercise its discretion to hear cases involving ambassadors under original jurisdiction.
Explanation
Article III, Section 2, Paragraph 2 of the US Constitution explicitly granted the US Supreme Court original jurisdiction over cases involving ambassadors and other foreign dignitaries:
"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."
The Constitution granted the Supreme Court originaljurisdiction, but allowed Congress to determine whether the jurisdiction would be exclusive or shared.
Congress required the Supreme Court to exercise exclusive jurisdiction over cases involving ambassadors until 1978 when they amended Federal law (28 USC § 1251) to allow US District Courts to hold concurrent original jurisdiction over these cases (Public Law 95-393).
The Supreme Court has discretion to conduct the trial itself, or to remand the case to US District Court for disposition.
28 USC § 1251. Original jurisdiction
(a) The Supreme Court shall have original and exclusive jurisdiction of all controversies between two or more States.
(b) The Supreme Court shall have original but not exclusive jurisdiction of:
(1) All actions or proceedings to which ambassadors, other public ministers, consuls, or vice consuls of foreign states are parties;
(2) All controversies between the United States and a State;
(3) All actions or proceedings by a State against the citizens of another State or against aliens.
For more information, see Related Questions, below.
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