Rules of Decision Act

A federal statute (28 U.S.C.A. § 1652 [1948]) that provides that where the Constitution, treaties, or acts of Congress are inapplicable, the law of the state in which the federal court is sitting should apply to civil actions.

The Rules of Decision Act, first enacted in 1789, is designed to discourage forum-shopping and to avoid the unfair administration of laws in cases heard by federal courts because of the diversity of citizenship of the parties. The landmark decision in Erie Railroad Co. v. Tompkins, 304 U.S. 64, 58 S. Ct. 817, 82 L. Ed. 1188 (1938), interpreted the Rules of Decision Act to include not only state statutes, but also controlling judicial decisions or state common law as constituting the laws of the state. Erie overruled the case of Swift v. Tyson, 41 U.S. (16 Pet.) 1, 10 L. Ed. 865 (1842), which construed the Rules of Decision Act as not requiring federal courts to apply state common law in diversity cases.

See: Swift v. Tyson.

The Rules of Decision Act requires that federal courts apply state law in their decisions arising out of diversity jurisdiction, except when in conflict with federal law.

This act came from Section 34 of the Judiciary Act of 1789. It is now codified, in slightly different form, in 28 U.S.C. § 1652.

It states that:

The laws of the several states, except where the Constitution or treaties of the United States or Acts of Congress otherwise require or provide, shall be regarded as rules of decision in civil actions in the courts of the United States, in cases where they apply.

Its interpretation, especially the meaning of "the laws of the several states," was central to the issue in Erie Railroad Co. v. Tompkins.

External links

• Thompson-Gale Legal Encyclopedia entry, courtesy of Jrank

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