Atherton v. FDIC, 519 U.S. 213, 6 (1997)

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218

ATHERTON v. FDIC

Opinion of the Court

control"); Bowerman v. Hamner, 250 U. S. 504 (1919). But the Court found its rules of decision in federal common law long before it held, in Erie R. Co. v. Tompkins, 304 U. S. 64 (1938), that "[t]here is no federal general common law." Id., at 78. The Third Circuit, while considering itself bound by Briggs, asked whether relevant federal common-law standards could have survived Erie. We conclude that they did not and that (except as modified in Part III, infra) state law, not federal common law, provides the applicable rules for decision.

This Court has recently discussed what one might call "federal common law" in the strictest sense, i. e., a rule of decision that amounts, not simply to an interpretation of a federal statute or a properly promulgated administrative rule, but, rather, to the judicial "creation" of a special federal rule of decision. See Texas Industries, Inc. v. Radcliff Materials, Inc., 451 U. S. 630, 640-643 (1981). The Court has said that "cases in which judicial creation of a special federal rule would be justified . . . are . . . 'few and restricted.' " O'Melveny & Myers v. FDIC, 512 U. S. 79, 87 (1994) (quoting Wheeldin v. Wheeler, 373 U. S. 647, 651 (1963)). "Whether latent federal power should be exercised to displace state law is primarily a decision for Congress," not the federal courts. Wallis v. Pan American Petroleum Corp., 384 U. S. 63, 68 (1966). Nor does the existence of related federal statutes automatically show that Congress intended courts to create federal common-law rules, for " 'Congress acts . . . against the background of the total corpus juris of the states . . . .'" Id., at 68 (quoting H. Hart & H. Wechsler, The Federal Courts and the Federal System 435 (1953)). Thus, normally, when courts decide to fashion rules of federal common law, "the guiding principle is that a significant conflict between some federal policy or interest and the use of state law . . . must first be specifically shown." 384 U. S., at 68. Indeed, such a "conflict" is normally a "precondition." O'Melveny, supra, at 87. See also United States v. Kimbell

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