law applied by federal courts Flashcards
ordinary FQ cases
Most FQ cases involve a violation of federal statute or constitutional provision. In these cases, the court just applies the text of the federal law and any authoritative precedent.
embedded FQ cases
In cases in which a state law claim depends on a question of federal law, the court applies state law to the state law issues and federal law to the federal law issues.
Federal Common Law Cases
there is no federal common law these are exceptions
Federal common law is a body of precedent repeatedly applied and molded by the courts. This body of law is generally 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
In these cases, federal courts will apply (and, if need be, create) federal common law and ignore any state law that might otherwise apply.
Federal common and interpreting Congressional intent
Federal common law allows a federal court to interpret Congressional intent or the meaning of statutes.
Federal courts may make federal common law when
(1) federal or constitutional interests are at stake;
(2) Congress has inadequately addressed the situation concerned; and
(3) the application of individual state laws in various jurisdictions would create unacceptable levels of diversity or uncertainty.
Erie in diversity cases
In diversity cases, federal courts will apply both state and federal law. The court conducts an “Erie analysis” – 2 step process:
step 1 in Erie analysis
Do what Congress or the Constitution says if it is VALID and ON POINT
step 2 in Erie analysis
if there is no federal statute or constitutional law on point, do what would avoid unfairness and forum shopping
forum shopping
picking one court over the other to get certain law applied or avoid certain law
-A finding of forum shopping will necessarily carry with it a finding of unfairness.
substance and procedure
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.”
2 things that are always substantive
Statute of Limitations: When P sues D in a federal diversity action, P’s compliance with the statute of limitations will normally be controlled by state law
Choice of Law rules: In a federal diversity suit, Erie requires that federal courts apply the choice of law rules of the state in which it is sitting.
