Choice of Law: Erie Flashcards
In a federal question case, ________ substantive law controls.
Federal. As well as federal common law.
In a diversity case, ________ substantive law and _______ procedural law apply.
State substantive; federal procedural.
In a supplemental jurisdiction case, ________ substantive law applies.
State substantive for state-law claims.
Hanna v. Plumer doctrine
Anything covered by the FRCP counts as “procedural” for purposes of Erie.
Federal law applies, even if substance of the claim is governed by state law.
Valid federal statute on point when state and federal laws conflict: what controls?
Federal law.
Before applying a Federal Rule (not statute) in conflict with a state law, what must court determine?
Must determine that the Rule is valid under the Rules Enabling Act. Does the Rule abridge, enlarge, or modify any substantive right?
If NO, apply federal rule.
If YES, apply federal rule if it only incidentally affects litigant’s substantive rights.
No federal statute or rule on point, what controls?
If matter is SUBSTANTIVE, then STATE LAW controls.
If matter is PROCEDURAL, then FEDERAL LAW controls.
Apply state law if failure to do so would lead to different outcomes in state and fed court (outcome determinative).
What are “substantive” laws?
(1) Elements of a claim/defense
(2) statutes of limitations
(3) burdens of proof on claims/defenses
(4) state rules on conflicts of law.
What are “procedural” laws?
(1) Judge/jury allocation
(2) Assessment of attorney’s fees
(3) Equitable/legal determination
(4) Anything covered by FRCP
When is federal common law applied in federal question cases?
(1) Admiralty cases
(2) When the US is a party
(3) Interstate disputes
(4) Cases implicating relations with foreign countries
(5) Cases where government acts in a proprietary role (enters into contract, issues commercial paper)
(6) When Congress has left a gap in the statutory scheme.
When is federal common law applied in diversity cases?
When a “uniquely federal interest” is at stake and a significant conflict exists between that interest and the operation of state law.
When is federal common law applied in state court cases?
If state jurisdiction is concurrent with FQ jurisdiction and federal common law would have applied in federal court.
Determining applicable state law
Follow precedent from highest state court.
If no precedent, predict how highest state court would rule.
Give respectful attention to the decisions of lower state courts (not binding).
