Opinion ID: 374817
Heading Depth: 2
Heading Rank: 1

Heading: Conflicts of Law and Discovery of the Applicable Law

Text: 16 The court below, sitting as a federal district court in a diversity action, was obliged to apply the substantive law of the state in which it sat, including the state's choice-of-law rules. Klaxon Co. v. Stentor Electric Manufacturing Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). 17 Tenneco here argues that a conflict exists between the laws of Delaware and California on the question of the liability of a corporate successor for the torts of its predecessor. California, the forum state here, follows a variation on the governmental interest analysis approach to resolving conflicts of law known as the comparative impairment analysis. See Offshore Rental Company, Inc. v. Continental Oil Co., 22 Cal.3d 157, 583 P.2d 721, 148 Cal.Rptr. 867 (1978); Bernhard v. Harrah's Club, 16 Cal.3d 313, 546 P.2d 719, 128 Cal.Rptr. 215, cert. denied, 429 U.S. 859, 97 S.Ct. 159, 50 L.Ed.2d 136 (1976). While we are inclined to believe that California courts would apply California law in this case, we find it unnecessary to so decide here. 18 Tenneco urges the application of Delaware law on certain issues; however, we find in favor of Tenneco on those issues even if California law be applied. Consequently, we assume the applicability of California's substantive law on successor liability, unless otherwise indicated. 19 In ascertaining the law of California, we are guided by certain well-established principles. The task of a federal court in a diversity action is to approximate state law as closely as possible in order to make sure that the vindication of the state right is without discrimination because of the federal forum. Douglass v. Glenn E. Hinton Investments, Inc., 440 F.2d 912, 915 (9th Cir. 1971). In cases where the highest appellate court of the state has not spoken, well-considered dicta should not be ignored. See, e. g., Rocky Mountain Fire & Casualty Company v. Dairyland Insurance Company, 452 F.2d 603, 604 (9th Cir. 1971); Priest v. American Smelting & Refining Co., 409 F.2d 1229, 1232 (9th Cir. 1969); United States Fidelity & Guaranty Co. v. Anderson Construction Co., 260 F.2d 172, 176, n.17 (9th Cir. 1958). 20 On appeal, we are limited in our review of the district court's interpretation of the law of the state in which it sits. We do not overrule a district judge on the question of state law unless the judge's findings are clearly wrong. See, e. g., Scandinavian Airlines v. United Aircraft, 601 F.2d 425, 427 (9th Cir. 1979). While this circuit does not regard the district judge's presumed expertise in the law of his or her own state to be infallible, cf. Holcomb Construction Co. v. Armstrong, 590 F.2d 811 (9th Cir. 1979); Priest v. American Smelting & Refining, supra, we nonetheless regard the standard of review on this issue as one which does restrict our scrutiny of the district judge's determination.