Helix BBQ: Civil Procedure Choice of Law - Application of Federal Common Law with Explanations

What circumstances would preclude a federal court from applying federal common law to adjudicate a federal issue?

B.Congress has enacted a statute governing the issue.

Solution: The correct answer is B.

Answer option B is correct. Federal common law can be applied by federal courts to adjudicate issues when federal interests warrant it, e.g., in federal question cases, admiralty cases, cases where the United States is a party, cases involving an interstate dispute, and cases involving foreign relations. Furthermore, congressional statutes have sometimes been interpreted to authorize federal courts to develop federal common law to promote uniformity. In these instances, federal common law will be controlling unless Congress enacts a statute governing the issue.

The Constitution generally prohibits the federal courts from creating federal common law when adjudicating issues related to state-law-created claims except in unusual cases involving ___________.

a strong federal interest

Basis of Federal Common Law comes from:

The U.S. Constitution, federal statutes, or federal treaties

Examples of Federal Common Law are:

Admiralty law, antitrust, bankruptcy law, interstate commerce, civil rights, and ERISA-related cases