State law in federal court - Next Generation Bar Exam

1. What question determines whether a Federal Rule is valid under the Rules Enabling Act?

   Whether it really regulates procedure, the manner and means of enforcing rights. A Rule may not abridge, enlarge, or modify any substantive right.

2. After a section 1404(a) transfer from a proper venue, which state's law does the transferee court apply?

   The law that the transferor court would have applied. A change of venue for convenience should not change the applicable law.

3. Under Byrd v. Blue Ridge, what may justify applying a federal practice despite a contrary state rule?

   Countervailing federal interests, such as the allocation of functions between judge and jury. The federal interest is weighed against the state rule's importance and its effect on outcome.

4. Under Atlantic Marine, which law applies after a section 1404(a) transfer enforcing a forum-selection clause?

   The choice-of-law rules of the transferee court. A plaintiff who sues in violation of a forum-selection clause does not carry the original forum's law with it.

5. A state rule says an action is commenced, for tolling the limitations period, only on service. Federal Rule 3 says an action is commenced by filing. In a diversity case, which governs tolling?

   The state rule, because Rule 3 does not address tolling of state limitations periods. Under Walker v. Armco Steel, there is no direct conflict, so the state tolling rule applies.

6. When a Federal Rule of Civil Procedure directly covers the issue, what determines whether the federal court applies it?

   Whether the Rule is valid under the Rules Enabling Act and the Constitution. Under Hanna v. Plumer, a valid Federal Rule applies even if it changes the outcome.

7. In a diversity case, which statute of limitations applies?

   The state statute of limitations. Guaranty Trust Co. v. York treated limitations as substantive because it determines whether the claim can be enforced at all.

8. After a transfer under section 1406(a) from an improper venue, which state's law does the transferee court apply?

   The law that the transferee court would apply. A plaintiff who filed in an improper venue does not carry that forum's law with it.

9. When no federal rule or statute covers the issue, which twin aims guide the Erie analysis?

   Discouraging forum shopping and avoiding inequitable administration of the laws. Hanna refined the outcome-determination test by tying it to these aims.

10. How must a federal court decide a question of state law that the state's highest court has not resolved?

    By predicting how the state's highest court would decide it. The federal court may consider intermediate appellate decisions and may certify the question if the state permits.

11. Under Klaxon Co. v. Stentor, which choice-of-law rules does a federal court in diversity apply?

    The choice-of-law rules of the state in which it sits. Otherwise the outcome could vary between state and federal courts in the same state.

12. Under the Erie doctrine, which law does a federal court sitting in diversity apply?

    State substantive law and federal procedural law. Erie Railroad Co. v. Tompkins held there is no federal general common law.

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