State Law in Federal Courts

Question 1

Which law does a federal court apply?

Answer 1

Rule: A federal court sitting in a diversity case must use the choice of law rules of the state in which it sits.

Question 2

Cases that are transferred

Answer 2

Rule: If a case is transferred by one federal district to another district under the rule allowing such transfer for convenience of the parties, the court to which the case is transferred must apply the law of the state in which the transferror court sits.

Question 3

Notice and Proof of Foreign Law

Answer 3

Rule: Court will take judicial notice of sister-state and federal law, but a law of a foreign country is a fact that must be pleaded and proved.

• If the foreign country law cannot be determined the forum court will apply the forum law.