Law Applied by Federal Courts

Question 1

Rules of Decision Act

Answer 1

Applicable provisions of the federal Constitution, treaties, and constitutional statutes enacted by Congress always take precedence over state law.

-Therefore, federal courts apply federal law when considering issues involving the U.S. Constitution and constitutional federal statutes.

Question 2

Federal Question Cases

Answer 2

• Ordinary FQ cases (violation of federal statute or constitutional provision)- apply federal law and authoritative precedent
• Embedded FQ cases- court will apply state law to state law issues and federal law to federal law issues

Question 3

Federal CL Cases

Answer 3

When courts will apply federal CL and ignore any state law that might otherwise apply. Is confined to the following fields of law:

• maritime law
• foreign relations
• commercial rights and liabilities of the federal government
• property rights and liabilities of the federal government

Question 4

The Erie Doctrine: When is It Invoked

Answer 4

-When there are 1) state and federal law conflicts which 2) arise during federal diversity and supplemental jurisdiction cases.

Question 5

Erie Analysis

Answer 5

• Step 1- do what Congress or the Constitution says if valid and on point (if there is no law on point or if the law is invalid, the courts must move on to step 2).
• Step 2- if there is no federal statute or constitutional law on point, do what would avoid unfairness and forum shopping

Question 6

Erie Step 1

Answer 6

If a valid federal statute or constitutional provision is on point, the federal court must apply the relevant provision.

Question 7

Erie Step 1: Validity of Federal Statute or Constitution

Answer 7

The Constitution- is per se valid

• Federal statute- is valid if constitutional
• FRCP- valid unless the rule abridges, enlarges, or modifies a substantive right (never been satisfied (therefore, if you see a FRCP that you are familiar with it ought to be applied under this test)).

Question 8

Erie Step 1: On Point

Answer 8

• Is often a question of interpretation
• If state law and FRCP directly conflict –> FRCP wins
• If state law and FRCP can both apply – go to step 2

Question 9

Erie Step 2

Answer 9

If there is no constitutional provision or federal law that is on point, the court must do what it needs to do to avoid unfairness and forum shopping.

Question 10

Erie Step 2: Unfairness

Answer 10

If applying federal law in federal court and state law in state court would be unfair to a party who could only file in state or federal court, the federal court should apply state law.

Question 11

Erie Step 2: Forum Shopping

Answer 11

• If applying federal law in federal court and state law in state court would lead to forum shopping, the federal court should apply state law (that way, whether a party files in federal or state court, the law will be the same).
• E.g. adherence to federal practice would result in one category of damages being available in federal court but not state court, this will likely encourage forum shopping.

Question 12

Substantive v. Procedural

Answer 12

• If Step 2 instructs the court to apply state law, the law is called substantive
• If Step 2 instructs the court to stick with ordinary federal practice, the practice is called procedural

Question 13

SOL

Answer 13

SOL are considered substantive (therefore, apply state law)

Question 14

Choice of Law

Answer 14

Choice of law rules are also substantive (therefore, apply choice of law rules of the state in which the court is sitting).