Erie Flashcards
Bryd Analysis: State law v. Federal Practice
(1) Is the state law bound up with the definition of the rights or obligations of the parties?
If yes, state law should prevail
If no, then ask:
(2) Even if the state law is not bound up with the substantive rights and obligations, would its application nevertheless determine the outcome of the case? (Outcome determinative test)
If no, apply federal law
If yes, apply state law but then ASK:
(3) Are there affirmative countervailing considerations of federal judicial administration present?
If yes, apply the federal practice
Hannah Part I: State law v. Federal Practice
(1) Would the difference between state and federal lead a party to pick one or the other forum, forum shopping? (must be substantially certain at the beginning of the lawsuit)
If yes, apply state law
(2) Would applying one or the other lead to inequitable administration of the laws? (would there be a pattern of results over time that would regularly result in different applications of what is nominally the same substantive law)
If yes, apply state law
Hannah Part II: Federal Rule of civil procedure v. state law
Whether the federal rule being considered was valid/constitutional because it is within the scope of REA (2072) and consider both parts of REA
(1) Whether the federal rule really regulates practice and procedure? (2972(a)) and
- If it really governs practice and procedure and does not abridge or modify a substantive right, then it is valid under the REA
(2) Whether the federal rule abridges or modifies a substantive right? (2072(b))
- If it is valid under the REA, the rule must be applied even if it differs from the state practice in a significant way
What if a federal court cannot determine what state law is?
Federal courts must do their best to decide what the highest court of the state would do.
Federal law v. State law in a diversity action
Where there is a conflict of federal and state law in a federal diversity action and the application of the federal law would affect the outcome of the litigation, state law must be applied regardless of what it is labeled (procedural or substantive)