Choice of Law

Question 1

Erie Railroad Co. v. Tompkins

(1 main element)

Answer 1

• A federal court sitting in diversity must apply state substantive law, whether statutory or common law.
• The law should be the same, though the judge may change.
• Must apply state common law
• Substance = state statute and common law
• Procedure = FRCP

Question 2

Guaranty Trust v. York

(1 main question)

Answer 2

• A federal court, exercising jurisdiction based strictly on diversity of citizenship, must abide by any state legal rule that would be outcome determinative if held in state court.
• Case deciding whether to use statute of limitations (SOL) of New York state or federal SOL.
• Would application of the state rule significantly effect the outcome?
• Justice Frankfurter: Erie applies. Federal courts cannot be used to circumvent state laws.
• Whether the outcome would be effected is determinative!

Question 3

Byrd v. Blue Ridge Rural Electric

(1 main question)

Answer 3

• SC Workmens Compensation Act bared injured employees from suing.
• π, NC resident, brought suit in Fed court on diversity grounds.
• Is π barred from jury trial because of SCWCA?
• Look at whether there is a countervailing federal interest.
• Here, the right to a jury trial is protected under the 7th Amendment. Therefore, federal procedure overrules.
• Issue of whether outcome is effected must be decided when the case is filed.

Question 4

Hanna v. Plumer

(1 main question)

Answer 4

• ALWAYS apply FRCP!!!
• Rules Enabling Act: FRCP can’t create different substantive rights, they can only deal with civil procedure.
• Case is about state v federal rules of process.
• Question is whether the rule was important to the choice of forum at the outset.
• Again, FRCP cannot be used to circumvent the laws of a state. Here, ▲ is attempting to use the application of state rules to avoid liability.
• If a plaintiff serves a defendant properly under the federal rules, the plaintiff can proceed with a state-law claim that requires a different method of service for establishing liability.

Question 5

Rule Enabling Act

Answer 5

The Supreme Court shall have the power to prescribe, by general rules, the forms of process, writs. pleadings and motions, and the practice and procedure of the district courts of the US in civil actions. Such rules shall not abridge, enlarge or modify any substantive right and shall preserve the right of trial by jury.

Question 6

TEST: Choice of Law

(3 steps)

Answer 6

1. Hanna - Is there a federal rule or procedural statute that governs?
   a. YES - it governs (Erie)
   b. NO - is the issue substantive or procedural?
   i. . Procedural - FRCP
   ii. . Substantive - State statute and common law
2. If unclear: Guaranty - does it effect the outcome? Apply state law. But consider…
3. If still unclear: Byrd - is there a countervailing federal interest? Apply federal.

Question 7

Salve Regina College v. Russell

Answer 7

• A federal court of appeals should not defer to a district court’s interpretation of state law.

1. Federal court must make an educated guess if there is no state supreme court opinion on point
2. Even an intermediate state appellate decision is not necessarily controlling
3. A federal appellate court gives no deference to a federal district court in ascertaining state law [Salve Regina College]