Choice of Law Flashcards
Rules of Decision Act
28 U.S.C. § 1652
The laws of the several states, except where the Constitution or treaties of the United States or acts of Congress otherwise require or provide, shall be regarded as the rules in civil actions in the courts of the United States, in cases where they apply
Swift v. Tyson
Following State Statutes
The RDA required federal courts to apply state statutes to cases, but not state common law.
Black & White Taxicab & Transfer Co. v. Brown & Yellow Taxicab and Transfer Co.
General Common Law
The federal courts are not limited to looking at the common law of the states they are in. There is a general common law.
28 U.S.C. § 1359
Parties Joined For Wrong Reason
A federal district court shall not have jurisdiction of an action in which any party has been improperly or collusively made or joined to invoke the jurisdiction of the court.
Erie Railroad Co. v. Tompkins
Statutes and Common Law
Except in matters that involve federal law, the federal courts shall follow the statutes and common law of the states they are in.
This has a constitutional basis.
Tenth Amendment
State Powers
The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.
Outcome-Determinative Test
Guaranty Trust Co. of New York v. York
Federal courts should use state procedure rules in cases ruled by state law if federal procedure rules would allow for a different outcome than state procedure rules would.
This does not have a constitutional basis. It’s policy based
Article I and the Necessary and Proper Clause of the Constitution
Federal courts can create their own rules for processing cases in their courts.
Byrd v. Blue Ridge
Federal Courts’ Policy-Based Discretion
When a federal court is deciding a diversity case, under the Constitution, it must apply state law, but applying state procedural rules is a policy that is not based on the Constitution. Federal courts may choose to use federal procedural for policy reason.
Hanna v. Plumer dicta
Outcome-Determinative Test
When there is a conflict between state procedure practice and federal procedure practice in diversity cases, federal courts should use the Outcome-Determinative Test prospectively. If the difference between the federal and state practice would not a lawyer to choose one forum over another, it’s okay to use federal practice.
Hanna v. Plumer
FRCP
When there is a conflict between state procedure and a FRCP, the federal court must use the FRCP as long as Congress had the power to enact the rule or, delegate the power to SCOTUS to do so, and the rule is broadly procedural
Rules Enabling Act
28 U.S.C. § 2072(a)
The Supreme Court shall have the power to prescribe general rules of practice and procedure for cases in district courts and courts of appeal
Rules Enabling Act
28 U.S.C. § 2072(b)
Such rules shall not abridge, enlarge or modify any substantive right. All laws in conflict with such rules shall be of no further force or effect after such rules have taken effect.
Rules Enabling Act
28 U.S.C. § 2072(c)
Such rules may define whether a ruling of a district court is final for the purposes of appeal under section 1291 of this title
