Choice of Law Flashcards
(12 cards)
Vertical Choice of Law asks
Should a federal court apply federal or state law in diversity cases
Federal law should defer to the law of the states when
congress has not legislated in a particular area or does not have the authority to legislate in a particular area
Before Erie federal courts were to
look to the common law from all states and find a general rule across the common law
Erie Decided
- Judges use the common law of the state when there is no statute
- If it is not a purely federal question must look to state law
- If state supreme court has not decided must guess what the highest court in the state would do
Horizontal Choice of Law
Which states law should apply
Horizontal choice of law requires
look to the choice of law provision in the state where the district court is
lex loci delicti
The law of the place where the wrong was committed applies
Rules enabling act delegated
power to promulgate rules to the Supreme Court
When congress has not spoken on something that must be dictated by federal law
Court creates federal common law by guessing what Congress would do
- Congress can adjust later
Substance v. Procedure Tests
- Outcome Determinative Test
- Validity of the Rule Test
Outcome Determinative Test
Should apply state law if ignoring it could lead to a different outcome in federal court that would take place in state court
Validity of the Rule Test
- Did Congress have the constitutional authority to pass that rule (is this rule rationally capable of classification as procedure -> if yes Congress can legislate)
- Did the Supreme Court have the power to promulgate the rule from Congress for the federal courts (is it a matter of practice and procedure -> if yes SC can promulgate)
- Has the Supreme Court actually promulgated the rule under the Rules Enabling Act
