Choice of Law and Erie

Question 1

What is conflict of laws?

Answer 1

Body of law that governs the appropriate choice of law in cases where the law of more than one state or jurisdiction may be implicated.

Question 2

What is choice of law?

Answer 2

whether state or federal law should apply in diversity cases (always related to substantive law)

Question 3

What is horizontal choice of law?

Answer 3

Choosing between the forum state’s law and that of a co-equal jurisdiction. Classic choice of law rule

Question 4

What is vertical choice of law?

Answer 4

Choosing between the forum state’s law and federal law in diversity cases

Question 5

Historically, what classic choice of law rule applied?

Answer 5

Lex locus delicti, law of the place of the wrong, applying the law of the place where the injury occurred

Question 6

What is false conflict?

Answer 6

if the dispute touches more than one jurisdiction, but the laws in both jurisdictions are the same, there is a false conflict and the forum law controls

Question 7

What is a choice of law clause?

Answer 7

A contract clause in which the parties specify that any dispute arising out of the contract must be determined according to the law of a particular jurisdiction

Question 8

What is the order of choice of law rules?

Answer 8

1) Statutes designating an applicable law control unless they violate the U.S. Constitution 2) Choice of law clauses govern if there’s no statute and the clause doesn’t violate forum public policy or the Constitution, and 3)
If there’s no pertinent statute and no choice of law clause in a contract, the court
will use the forum’s choice of law rule

Question 9

What is Texas’ choice of law rule?

Answer 9

The 7 factor most significant relationship test

Question 10

What are the factors in the most significant relationship test?

Answer 10

(a) the needs of the interstate and international systems,
(b) the relevant policies of the forum,
(c) the relevant policies of other interested states and the relative interests of those states in the
determination of the particular issue,
(d) the protection of justified expectations,
(e) the basic policies underlying the particular field of law,
(f) certainty, predictability and uniformity of result, and
(g) ease in the determination and application of the law to be applied

Question 11

What is the rules of decision act?

Answer 11

An act that required federal courts to apply the law of the several states for substantive matters unless Congress stated otherwise

Question 12

Under the rules of decision act, what laws did federal courts apply for local and non local matters?

Answer 12

Local- the law of the state in which the federal court is located
Non local- general common law

Question 13

What is general common law?

Answer 13

Instead of being a compilation of cases and precedents, it was a holistic body of law based on logic, right and reason, available
to any learned person who considered the facts of a case against precedent

Question 14

What case authorized general common law?

Answer 14

Swift v Tyson

Question 15

What was the Swift v. Tyson rule?

Answer 15

iversity cases in federal court used a nationwide
“general common law” unless the local state had its own statute or special custom on the issue

Question 16

What is federalism

Answer 16

The constitutional concept that certain governmental functions should be the responsibility of the individual states and certain functions should be the responsibility of the federal government.

Question 17

What case overturned Swift v. Tyson?

Answer 17

Erie v. Tompkins

Question 18

What did Erie v. Tompkins say?

Answer 18

In diversity cases, the federal court applies the local state’s laws including the choice of law clause in the state in which it sits

Question 19

What test did Gauranty v. York create?

Answer 19

The outcome determinative test- If there a conflict in a diversity case with an outcome determinate factor, we treat that as substantive law, so state law wins

Question 20

What test came from Byrd?

Answer 20

The byrd balancing test, which balances state and federal interests to determine whether the state substantive law or procedural federal law should apply. If a conflict is outcome determinitive this does not automatically mean that state law trumps

Question 21

What is the rules enabling act?

Answer 21

a federal rule that is on point (intended to do that) will apply in federal court unless it abridges, enlarge, or modifies a substantive right

Question 22

Congress gives the Supreme court the power to draft a code (rules of federal procedure) just as long as it doesn’t what?

Answer 22

mess with substantive law

Question 23

What two steps did Hanna v. Plummer make?

Answer 23

1) If it is a federal rule on point, apply the rules enabling act
2) For all other cases, apply the byrd balancing test

Question 24

When are the twin aims of Erie?

Answer 24

1) To discourage forum shopping
2) Avoid inequitable administration of the laws

Question 25

If there is a state law on point that the federal court doesnt want to listen to, what are they required to do?

Answer 25

They have to honor the highest court in the state and the state legislature, everything else is persuasive.

Question 26

What is binding on a state law?

Answer 26

The state’s legislature and the state’s supreme court

Question 27

What law does a federal court apply when there are two states where the law might apply?-

Answer 27

local state’s choice of law clause