Even Judicial Power is limited by the constitution

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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; 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.

The federal court system is limited in scope by the parties involved because this clause defines what cases it can preside over by the parties involved such as an ambassador or minister.

Here is a list of cases between parties it can handle:

1. to all Cases affecting Ambassadors

2. other public Ministers and Consuls

3. other public Ministers and Consuls

4. to all Cases of admiralty and maritime Jurisdiction

5. to Controversies to which the United States shall be a Party;

6. to Controversies between two or more States

7. between a State and Citizens of another State

8. between Citizens of different States

9. between Citizens of the same State claiming Lands under Grants of different States

10. and between a State, or the Citizens thereof, and foreign States, Citizens or Subjects

The federal court system is limited by the kinds of defendents/plaintiffs not by territory so the supreme court is only the last say on the constitution when the defendents/plaintiffs fall into one of these ten situations and since the tenth amendment states that any power not delegated to the federal government remains in the states then state courts have the power to interpret the federal constitution when the cases fall outside these ten types.