Choice of Law: the Erie Doctrine Flashcards
In general what choice of law will apply to each when there Is a
-> federal question
-> diversity jurisdiction
-> supplemental jurisdiction
FQ
-> federal substantive and procedural law controls, as well as federal common law
DJ
-> state substantive law and applicable federal procedural law
SJ
-> state substantive law for state-law claim
When a federal court that is hearing a state matter under diversity jurisdiction, must it follow the state’s highest court’s rulings?
Yes.
Federal courts sitting in diversity must apply federal law to procedural issues (e.g., filing deadlines) and state law to substantive issues (e.g., elements of a claim or defense). A federal court interpreting state substantive law must follow the rulings issued by the state’s highest court.
What choice of law do you apply when there is valid federal statute on point when state and federal laws conflict?
Apply federal law
What choice of law do you apply if there is no federal statute, but there is a Federal Rule, BUT the Federal Rule and State Rule are at conflict with one another?
Before applying a Federal Rule (rather than a federal statute), court must determine the Rule is valid under the Rules Enabling Act
To do this, you have to ask the question
-> does the Federal Rule abridge, enlarge, or modify any substantive right?
IF no, then apply the Federal Rule
IF yes, then apply the Federal Rule IF it ONLY it incidentally affects a litigants’s substantive right
What must the court do if it can’t determine whether the issue before it is a substantive or procedural based issue?
What happens if it’s still unclear? Which analysis do you do?
It must look at the facts in order for the court to determine if there is a conflict between state and federal law with respect to the issue.
Ask the question whether there is a federal law that directly addresses the issue:
-> if “yes” then do the federal-rule analysis
-> if “no” then do the Erie analysis
How does the federal-rule analysis work?
If there is a valid federal rule that directly addresses the issue, then
-> if it’s arguable procedural
AND
-> does not enlarge, abridge, or modify substantive right of the parties
THEN
-> Federal law controls
BUT
-> if it isn’t arguably procedural
AND
-> does modify substantive right of the parties
THEN
-> State law controls
How does the Erie analysis work?
If the state law is outcome determinative AND there is no countervailing federal policy interest THEN state law controls
BUT
If the state law is not outcome determinative AND there is a countervailing federal policy interest THEN federal law controls
What choice of law do you apply if there is neither a federal statute or federal rule on point?
You would look to see if federal common law can be applied or not.
Apply state law if failure to do so would lead to different outcomes in state and federal court AND there is no countervailing federal policy interest
-> BUT IF failure to apply state law is not outcome determinative AND there is a countervailing federal policy interest, then you can apply federal common law.
What is substantive law versus what is procedural law?
Substantive law
-> elements of claim or defense, statute of limitations (S/L), tolling provisions, alterations in burden of proof, alterations in damages calculations, and creates evidentiary privileges
Procedural law
-> judge/jury allocation, assessment of attorney’s fees, equitable/legal determination
In general, what is federal common law?
-> what gap is it meant to fill
-> how does it function
Created when there is no applicable federal statute or constitutional provision
There is no general federal common law; general areas that federal common law is applicable to will be limited
When do you apply federal common law with regards to a federal question?
Admiralty cases
When the U.S. is a party to the case
Interstate disputes
Cases implicating relations with foreign countries
Cases in which the government acts in a proprietary role (e.g. enters into Ks, issues commercial paper, and oversees regulatory programs);
AND
When congress has left a gap in a statutory scheme
When do you apply federal common law in a diversity jurisdiction case?
When a “uniquely federal interest” is at stake and a significant conflict exists between that interest and the operation of the state law.
When do you apply federal common law in a state court case?
If state JX is concurrent with FQ JX and federal common law would have applied in federal court, then it will also apply in state court.
Which choice of law must a federal court apply when ruling over a state matter where there is a state conflict of law?
Federal court must apply state’s conflict-of-law rules.
What is the choice of law regarding state conflict-of-law rules in a diversity jurisdiction case?
District court bound by conflict-of-laws rules of state in which the district court is located, BUT only to extend that state’s rules are valid under Full Faith and Credit and Due Process Clause
