Matsushita Elec. Industrial Co. v. Epstein, 516 U.S. 367, 7 (1996)

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Cite as: 516 U. S. 367 (1996)

Opinion of the Court

or derivative action, that provides for the release of exclusively federal claims.3 We granted certiorari to clarify this important area of federal law. 515 U. S. 1187 (1995).

II

The Full Faith and Credit Act mandates that the "judicial proceedings" of any State "shall have the same full faith and credit in every court within the United States . . . as they have by law or usage in the courts of such State . . . from which they are taken." 28 U. S. C. § 1738. The Act thus directs all courts to treat a state-court judgment with the same respect that it would receive in the courts of the rendering State. Federal courts may not "employ their own rules . . . in determining the effect of state judgments," but must "accept the rules chosen by the State from which the judgment is taken." Kremer v. Chemical Constr. Corp., 456 U. S. 461, 481-482 (1982). Because the Court of Appeals failed to follow the dictates of the Act, we reverse.

A

The state-court judgment in this case differs in two respects from the judgments that we have previously considered in our cases under the Full Faith and Credit Act. As respondents and the Court of Appeals stressed, the judgment was the product of a class action and incorporated a settlement agreement releasing claims within the exclusive jurisdiction of the federal courts. Though respondents urge "the irrelevance of section 1738 to this litigation," Brief for Respondents 25, we do not think that either of these features exempts the judgment from the operation of § 1738.

That the judgment at issue is the result of a class action, rather than a suit brought by an individual, does not under-3 Compare the decision below with Grimes v. Vitalink Communications Corp., 17 F. 3d 1553 (CA3), cert. denied, 513 U. S. 986 (1994); Nottingham Partners v. Trans-Lux Corp., 925 F. 2d 29 (CA1 1991); and Abramson v. Pennwood Investment Corp., 392 F. 2d 759 (CA2 1968).

373

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