Law Applied in Federal Courts Flashcards
(4 cards)
State Law In Federal Court
State Law In Federal Court (Erie)
Under the Erie Doctrine, federal court sitting in diversity must apply the substantive law in which it sits, including the state’s choice-of-law rules. If the lawsuit is based on a question of federal law, however, the court will use federal law. Federal law generally applies to procedural issues, such as the FRCP and the FRE, the right to a jury trial, and when to bring a class action. Generally, state law applies to substantive issues, such as which party has the burden of proof, which statute of limitation applies, caps on damages, elements of a claim, and choice of law rules.
Federal Common Law
Federal Common Law
Federal common law is applied where Congress has given the courts the power to develop law or where a federal rule is necessary and state law would frustrate federal objectives.
Choice of Law (The Klaxon Doctrine)
Choice of Law (The Klaxon Doctrine)
Any time a federal court is sitting in diversity, and there is a choice of law issue, a party must look to see what the law the stte that the court is sitting would select for.
Valid and On-Point Federal Rule
Valid and On-Point Federal Rule
A valid and on-point federal rule will always win, so when a federal statute or law that is valid and on-point is presented against a state rule, the valid and on-point federal rule will always prevail.
