Opinion ID: 76720
Heading Depth: 2
Heading Rank: 1

Heading: Federal Common Law of Foreign Affairs

Text: 13 At the outset, we need to specify the source of law governing the present claim. We hold that federal law, rather than Florida law, governs notwithstanding the fact that the plaintiff brought state law claims against the defendant banks. 14 Under the Erie doctrine, a federal court adjudicating state law claims applies the substantive law of the state. See Erie R.R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938); Klaxon Co. v. Stentor Electric Mfg. Co., 313 U.S. 487, 61 S.Ct. 1020, 85 L.Ed. 1477(1941). The Supreme Court, however, has carved out exceptions to this doctrine where there are uniquely federal interests at stake. See Hinderlider v. La Plata River Co., 304 U.S. 92, 110, 58 S.Ct. 803, 82 L.Ed. 1202 (1938). One such exception applies to litigation that implicates the nation's foreign relations. See Banco Nacional de Cuba v. Sabbatino, 376 U.S. 398, 84 S.Ct. 923, 11 L.Ed.2d 804 (1964) (applying federal law rather than New York law); Republic of the Philippines v. Marcos, 806 F.2d 344, 352-54 (2d Cir.1986) (applying federal law because the foreign relations implications of the litigation created uniquely federal interests). Because our foreign relations could be impaired by the application of state laws, which do not necessarily reflect national interests, federal law applies to these cases even where the court has diversity jurisdiction. As the Supreme Court explained in Sabbatino: 15 We could perhaps in this diversity action avoid the question of deciding whether federal or state law is applicable to this aspect of the litigation.... 16