Choice of Law Flashcards
What is Vertical Choice of Law?
a. The process of deciding whether a federal court will apply federal law or state law to a legal issue when deciding a case
b. The issue arises in federal courts exercising diversity or supplemental jurisdiction over state law claims
What is the First Question to Ask when assessing VCOL? (Hanna Prong)
a. Is there a valid federal provision that conflicts with state law?
b. BLL: If a federal procedural statute or a federal rule of procedure is constitutional and valid under the Rules Enabling Act, Then it applies in Federal Court, Except when it does not fully answer a question that a state fully does
If YES: Federal law is applied over State laws
IF NO: Then apply Erie Doctrine
What is the Erie Doctrine? 1652
(Federal v. State Law in Diversity Jurisdiction)
a. No federal provision on point
b. Use only when we are in federal court and dealing with diversity jurisdiction
c. Requires federal courts sitting in diversity jurisdiction to apply state substantive law to those claims but federal procedural law
d. State substantive law includes state law from a state constitution, statute, regulation or common law
When does Erie Apply?
a. Whenever there is no controlling federal law
b. Whenever State law governs a claim or defense
c. Diversity Jurisdiction: where federal courts hear cases on diversity, which occurs when parties are
1. From different states
2. Amount in controversy exceeds $75,000
What Factors do Courts Assess when deciding if an issue is Substantive or Procedural? (4)
- Whether the proposed state law defines the parties’ rights and obligations or instead sets a method for enforcement
- Whether the issue is outcome-determinative
- What result would encourage forum shopping and
- What result would promote equitable application of the law
Under the Substantive Issue Analysis: what is the prong of state law defining parties rights and obligations
a. Balance of interests: such as state law stating that a judge decides a case but if federal law applies, a jury will decide the case: We like the jury system so therefore federal law should apply
b. If a state law is not clearly substantive, the federal court should follow it unless the federal court interests in doing it differently
Under the Substantive Issue Analysis: what is the prong of Outcome Determinative
When the type of law we use (state or not) determines the outcome of the case
Under the Substantive Issue Analysis: what is the prong of Encouraging Forum Shopping
a. Avoid forum shopping
b. If the federal ignores this state law, will it cause the parties to flock to federal court? If so, then it is unfair to instate citizens because they cannot invoke diversity jurisdiction and go to court to avoid that state law
Under the Substantive Issue Analysis: what is the prong of Equitable Application of the law
a. Avoid inequitable application
What is Horizontal Choice of Law?
a. Conflicts between laws of different States
b. Relationship between the laws of different states
c. Legal concept that determines which state’s law applies to a dispute between two connected jurisdictions
When Plaintiff chooses one of multiple proper venues, what HCOL applies?
If a case is transferred to another venue under 28 U.S.C 1404(a), then the state law applicable in the original venue- including state horizontal choice of law rules follow the case to the new venue
What HCOL applies when there is a Forum Selection Clause?
Except: that, IF The transfer is to enforce a valid forum-selection clause, then the state law applicable in the new venue- including state horizontal choice of law rules applies.
