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The Erie Railroad appealed and again lost, the federal circuit court of appeals applying the precedent established in Swift v. Tyson. Not satisfied, the railroad took the case to the Supreme Court. Given ninety-six years of precedent, no one could have anticipated what happened next. The Supreme Court rejected the reasoning of Swift and, in doing so, broke with a tradition that had permitted federal courts to impose their own law upon the states under the constitutional protection afforded by the Swift decision. The decision came to be considered one of the most momentous of all those issued by the Court during the New Deal era. From that point on, federal courts were required, in cases where there was diversity jurisdiction, to apply state law, whether that passed by the legislature or that developed by the state courts. Federal common law would be...
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This section contains 173 words (approx. 1 page at 300 words per page) |
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