Opinion ID: 773715
Heading Depth: 2
Heading Rank: 1

Heading: reaching the choice of law issue

Text: 14 On appeal, Booking argues that Texas law governs the interpretation of the policy, and General Star contends that New York law controls that question. As noted above, the District Court did not pass on this choice of law issue because it believed that it lacked the discretion to do so because the issue was raised for the first time in Bookings' reply memorandum. See ante at 417. The basis for this conclusion was apparently an analogy to our practice of not considering arguments raised for the first time in reply briefs. See Decision and Order at 4 (stating that new arguments may not be raised in reply papers, and citing for this proposition Ernest Haas Studio, Inc. v. Palm Press, Inc., 164 F.3d 110, 112 (2d Cir. 1999), in which we declined to consider an argument raised for the first time in an appellant's reply brief). 15 We are skeptical of this analogy. The courts of appeals generally do not consider arguments raised for the first time in reply briefs because, inter alia, such is the dictate of Rule 28(a) of the Federal Rules of Appellate Procedure, see Knipe v. Skinner, 999 F.2d 708, 711 (2d Cir. 1993), and because if an appellant raises a new argument in a reply brief an appellee may not have an adequate opportunity to respond to it. Moreover, by the time an appellate brief is drafted, a case has been percolating in the federal courts for long enough for the appellant's counsel to have selected the arguments that he will rely upon. It is therefore reasonable to expect that he will include all of these arguments in his opening brief. 16 These considerations, however, do not apply with full force in a district court. Rule 28 of the Federal Rules of Appellate Procedure, for example, has no analogue in the Federal Rules of Civil Procedure, and in most cases trial judges can provide parties with an adequate opportunity to respond to particular arguments by ordering additional briefing or an extra round of oral argument. Accordingly, we doubt that district courts lack all discretion to consider arguments raised for the first time in reply briefs-especially when, as here, they order additional briefing on the argument pressed in the reply brief. 17 All this said, we need not and do not reach here the question of whether the District Court had discretion to consider Booking's choice of law argument. Answering this question would seem to require that we make new law, and we are reluctant to do so. Accordingly, in determining whether we may address Booking's choice of law argument we will follow a familiar, trod path. 18 In general, a federal appellate court does not consider an issue not passed upon below. Singleton v. Wulff, 428 U.S. 106, 120 (1976). See generally Robert J. Martineau, Considering New Issues on Appeal: The General Rule and the Gorilla Rule, 40 VAND. L. REV. 1023, 1026-34 (1987) (describing the historical development of this rule and the various justifications for it). This rule, however, is a prudential one, and we have broad discretion to consider issues not raised in the District Court. See Lo Duca v. United States, 93 F.3d 1100, 1104 (2d Cir. 1996); see also, e.g., Greene v. United States, 13 F.3d 577, 586 (2d Cir. 1994) (Entertaining issues raised for the first time on appeal is discretionary with the panel hearing the appeal.). It follows therefore that we have discretion to consider issues that were raised, briefed, and argued in the District Court, but that were not reached there. 4 19 Here, we will exercise that discretion for two reasons. First, the question of whether Texas or New York law is controlling is a purely legal issue. See Greene, 13 F.3d at 586 (reaching such an issue on appeal); see also Baker v. Dorfman, 239 F.3d 415, 420 (2d Cir. 2000) (noting that we have been more likely to exercise our discretion to consider an issue not raised in the District Court where the issue is purely legal). Indeed, the Courts of Appeals often opt to consider issues not raised in the District Court that concern the appropriate choice of law. See Martineau, supra, at 1072-73 (collecting cases). For example, in Marino v. New York Teleph. Co., 944 F.2d 109 (2d Cir. 1991), the District Court relied on N.Y. INS. LAW §3420(d) (McKinney 1991), which applies only to insurance contracts delivered or issued in New York. We held that the insurance contract in question had not been delivered or issued, even though the matter had not been raised in the District Court. See Marino, 944 F.2d at 113 (the misapplication of a statute is a clear error of law and one that we feel compelled to recognize). 20 Second, on the facts of this case, not considering the choice of law issue will likely lead to a substantial injustice. See Dorfman, 239 F.3d at 420 (noting that we have been more likely to exercise our discretion to consider on appeal an issue not raised in the district court where consideration of the issue is necessary to avoid manifest injustice). If we do not consider the choice of law issue, New York law will apply, and under New York law it is apparent that it will be all but impossible for Booking to collect the judgment entered in her favor in the tort action. See generally ante at 416 (noting that National is no longer a going concern). By contrast, if we consider the choice of law issue, Texas law will control, see post at II.C., and Booking may be able to collect the judgment. 21 In short, we will consider the choice of law issue. 5