Where do the twin aims come from? They are not
constitutionally compelled. It would not be unconstitutional for
federal courts to make federal common law in a way that led to forum
shopping between federal and forum state courts. The usual answer is
that their source is the Rules of Decision Act, 28 U.S.C. § 1652. I
disagree. The most likely source is the statute that gives the federal
court jurisdiction. The usual theory about why Congress allowed federal
courts to entertain diversity cases is that it protects out of state
parties from bias in the state court system. If federal courts
aggressively created federal procedural common law that differed from
forum state law, that would frustrate the purposes of diversity. An out
of state plaintiff who was worried about state court bias might
nevertheless refrain from suing in federal court because the federal
procedural common law would disfavor him compared to the procedural
rules in state court. Conversely an out of state plaintiff who was not
worried about state court bias might choose federal court because he
liked the federal procedural common law there, compared to forum state
procedural law, thereby wasting federal resources on cases that didn’t
implicate the purposes of diversity. I discuss this in my twin aims article (pp. 1887-1904).
Vertical uniformity and
the twin aims would not be an issue however concerning federal statutes
and Federal Rules of Civil Procedure. The reason is that these are
congressional directives or are created pursuant to congressional
directives. Although federal statutes or FRCPs that diverge from forum
state law could frustrate the purposes of diversity, Congress is free
to frustrate the purposes of earlier legislation through subsequent
legislation if it wishes.