Two incidents appear in Parashat Yitro before the account of the giving of the Torah, yet their actual chronology is nonetheless unclear: the arrival of Yitro, Moshe's father-in-law (Shemot 18:1-12); and Yitro's critique and improvement of the judicial system (Shemot 18:12-27).
There is a classical dispute about whether these incidents occurred prior to the giving of the Torah, or whether they really happened after the giving of the Torah, and are for some reason written out of place.
Why do we need to hear of Am Yisrael's having a system of justice even before the giving of the Torah? In order to impress upon us that there is a morality, a basic system of right and wrong, even before the giving of formal commandments.
Based on a sicha by Harav Yehuda Amital (summarized by Ramon Widmonte)