True Ordination is only in Israel
In Parshat Mishpatim, we find cases of damage that one person causes to another, through theft, negligence or assault.
In Shmot 22:3 we learn:
If the theft shall be found in the thief’s possession- whether a live ox or donkey or sheep or goat- he shall pay double.
This is an example of a knas, a penalty, where the thief is required to pay a set amount to the victim, in this case double, regardless of how much damage he caused.
Cases of penalties were only judged by rabbis who held true Semicha (ordination) passed down from Moshe. This true Semicha only existed until 135 CE. True Semicha was only conferred in the Land of Israel.
The Rambam writes in Hilchot Sanhedrin 4:6, 11:
One may not confer Semicha upon elders outside of the Land of Israel, even if the conferrers received their Semicha in the Land of Israel…It seems to me that if all of the sages of The Land of Israel would agree to appoint judges and grant them Semicha, these judges would have genuine Semicha. Then they would be able to judge cases of penalties and confer Semicha upon others… Why were the sages so distressed about the abolition of Semicha? Because the Jews are scattered about…
We see from here that true Semicha can only take place in the Land of Israel. When all of the Jews return to their homeland we can revisit conferring true Semicha once again and then we will be able to judge all cases including those that involve penalties.
May we see that time speedily in our days.