standard oil california argued decided june frederick bernays wiener providence petitioner frank belcher los angeles respondents standard oil california justice rutledge delivered opinion often since decision erie tompkins asked create new substantive legal liability without legislative aid common law case first impression seeks result arises following circumstances early one morning february john etzel soldier hit injured truck standard oil company california street intersection los angeles vehicle driven boone employee company government expense etzel hospitalized soldier pay continued disability upon payment etzel released company boone claims may hereafter account arising accident facts novel question springs whether government entitled recover respondents amounts expended hospitalization soldier pay loss etzel services jury waived district made findings fact conclusions law government favor upon issues including negligence contributory negligence judgment rendered accordingly circuit appeals reversed granted certiorari novelty importance principal question case reaches us number issues contested district circuit appeals eliminated remaining basic question respondents liability interference relation consequent loss together questions whether issue determined federal state concerning effect release view take case necessary consider questions relating reached conclusion respondents liable injuries inflicted upon government agree government view creation negation liability matter determined state law case aspect governed rule clearfield trust national metropolitan bank rather erie tompkins supra clearfield case involving liabilities arising forged indorsement check issued said authority issue check origin constitution statutes way dependent laws pensylvania state cf board commissioners jackson county royal indemnity duties imposed upon rights acquired result issuance find roots federal sources cf deitrick greaney duhme federal deposit ins corporation absence applicable act congress federal courts fashion governing rule law according standards pages page although clearfield case applied principles situation involving contractual relations government equally applicable facts case relations affected contractual tortious character perhaps relation government citizen distinctively federal character members armed forces whatever extent state law may apply govern relations soldiers others armed forces persons outside nonfederal governmental agencies scope nature legal incidents consequences relation persons service government fundamentally derived federal sources governed federal authority see tarble case tarble wall kurtz moffitt also think interferences relationship facts case involve federal government exclusive power establish define relationship virtue military equally clearly power execution functions protect relation formed harms inflicted others since also government purse affected well power protect relationship fiscal powers extent available protect financial injury add weight military basis excluding state intrusion indeed aspect case greatly different clearfield case one involving government paramount power control property prevent unauthorized use destruction secure indemnity injuries clearfield case moreover quite apart positive action congress matter issue neither primarily one state interest exclusively determination state law within spirit purpose erie decsion great object erie case secure federal courts diversity cases application substantive law control suit brought courts state federal sits common law utilized substitute state power create enforce legal relationships area set apart scheme state rather federal control erie decision threw object effect thus bring federal judicial power subjection state authority matters essentially local interest state control conversely purpose effect broadening state power matters essentially federal character determining whether issues nature diversity jurisdiction created special problems sort accordingly erie decision related law applied exercise jurisdiction effect intended none bring within governance state law matters exclusively federal made constitutional valid congressional command others vitally affecting interests powers relations federal government require uniform national disposition rather diversified state rulings cf clearfield trust pages pages hence although federal judicial power deal problems cut realm liability absence governable state law power remained unimpaired dealing independently wherever necessary appropriate essentially federal matters even though congress acted affirmatively specific question sense therefore remains may termed want better label area common law perhaps accurately independent federal judicial decision outside constitutional realm untouched erie decision government points demonstrated broadly clearfield national metropolitan bank cases also decisions rendered since erie case went whether government also correct saying fact foreshadowed day hinderlider la plata river cherry creek ditch unanimous opinion delivered likewise justice brandeis true course many situations apart supposed influence erie decision rights interests legal relations determined application state law congress acted specifically choice applicable federal rule occasionally selected state law clearfield trust page page government instance may place position rights necessarily determinable state law purchases real estate one whose title invalid law relation another claim cf fox situations may fairly taken congress consented application state law acting partially relation federal interests functions failure make provision concerning matters ordinarily governed still others state law may furnish convenient solutions way inconsistent adequate protection federal interest undertake delimit categorize instances properly applied outside erie aegis enough present purposes point exist cover variety situations generally involve matters application local law affords convenient fair mode disposition also either inescapable illustration given result substantially diversified treatment uniformity indicated appropriate view nature subject matter specific issues affecting government interest whether therefore state law control case matter decided application erie rule except government simply substituted others successor rights governed state law question one federal policy affecting merely federal judicial establishment groundings action also government legal interests relations factor controlling types cases producing erned erie ruling answer given necessarily dependent upon variety considerations always relevant nature specific governmental interests effects upon applying state law include considerations federal supremacy performance federal functions need uniformity instances inferences properly drawn fact congress though cognizant particular problem taken action change ways handling leaving account therefore supposed effect erie decision nevertheless opinion state law selected federal rule governing matter issue relation distinctively exclusively creation federal law know good reason government right indemnified circumstances lack right vary accordance different rulings several simply soldier marches today perhaps often flies across state lines furthermore liability sought essential even relevant protection state citizens tortious harms indeed soldier personal indemnity security except remotest since personal rights wrongdoer may fully protected without reference indemnity government loss rather liability principal effect make whole eral treasury financial losses sstained lowing injuries inflicted government obligations soldier question therefore chiefly one federal fiscal policy special peculiar concern citizens matters ordinarily appropriate uniform national treatment rather diversified local disposition well congress acted affirmatively fittingly determinable independent federal judicial decision reference varying state policies turn finally consideration policy properly applied concerning wrongdoer whether liability continued immunity past government puts forward interesting views support claim responsibility appeals first great principle law never wholly static growth urges life law living things expansive creative living process reminded judicial institution must continue large pliant also restrained steady hand moreover special problem roots ancient soil tort law wherein chief plowman judge notwithstanding furrow may covered widened legislation bringing argument special point counsel favored us scholarly discussion origins foundations liabilities considered analogous later expansion include relations originally comprehended embrace particularly liabilities created common law arising tortious injuries inflicted upon persons standing various special legal relationships causing harm injured person also loss services assimilated injuries person bound relation tie obvious examples master rights recovery loss services servant apprentice husband similar action interference marital relation including loss consortium well wife services parent right indemnity loss child services including action daughter seduction starting instances illustrating creative powers functions courts argument leads effort show relation identical still strongly analogous analogies destroyed variations highly characterizing one settled types liability exertion creative judicial power bring relation legal protection tortious interferences strangers proper exemplification law capacity catch times elaboration argument details interesting law attractive scene action broad field compendously labe led law torts within perhaps none engrossing areas dealing essentially human highly personal relations forego tendered opportunity think argument ignores factors controlling importance distinguishing present problem government seeks bring companionate disposition centered fact government interests relations involved rather highly personal relations assertedly comparable liabilities arose narrower scope compared allowed courts general jurisdiction action federal courts matters deny government basic premise law capacity growth must include creative work judges soon law become antiquated strait jacket dead letter power lacking judicial hand stiffen mortmain part work creation federal scheme part work part federal courts outside constitutional area modest state courts particularly freedom create new liabilities erie tompkins witnesses see also hudson cranch moreover government recognizes one phase argument ignores simply question creating new liability nature tort grounded though argument analogies drawn field issue comes final consequence question federal fiscal policy coupled considerations concerning need appropriateness means used executing policy sought established tort law analogy brought forth indeed secure new step forward expanding recognized area applying settled principles law creating new ones advanced rather instrument determining establishing federal fiscal regulatory policies government executive arm thinks prevail situation covered traditionally established liabilities whatever merits policy itsconversion law proper subject congressional action creative power congress federal courts custodian national purse token primary often exclusive arbiter federal fiscal affairs prehend said securing treasury government financial losses however inflicted including requiring reimbursement injuries creating well filling treasury moreover congress without doubt conscious throughout history government constantly sustains losses tortious even criminal conduct persons interfering federal funds property relationships assume ignorant losses long arisen injuries inflicted soldiers occurred case therefore one government argues involved application concept legal liability new situation new situation every respect similar old situation originally gave rise concept among others one trouble situation new rate new congress presumed known acted light knowledge congress thought necessary take steps prevent interference federal funds property relations taken positive action end think done desire still may wishes view considerations exercise judicial power establish new liability intruding within field properly within congress control matter concerning seen fit take action accept challenge making liability effective case also involve possible element surprise view settled contrary practice action congress many cases told may governed decision finally precedents relied pertinent total problem particularly view federal especially fiscal aspects none situations apply question liaility liability within power one parties litigation determine courts stood arbiters citizens neither determine outcome policy properly followed party plaintiff suit power time create liability question organ government make determination liability exists decision sons stated instance congress courts acts establish liability others withhold creative touch judgment affirmed affirmed justice frankfurter concurs result justice jackson dissenting defendant case held liable negligently inflicting personal injuries civilian obliged pay among items damage reasonable cost resulting care doctor hospital nurse earnings lost period disability civilian bore cost part damage civilian wife expense fell upon husband entitled recover civilian child recoverable parent law wrongdoer commits tort civilian must make good somebody elements costs resulting wrongdoing holds victim negligence soldier wrongdoer make good items expense one bears duty furnish medical services hospitalization nursing soldier loses services pay goes costs essentially fall upon reason relationship holds recovered wrongdoer parent case child husband case wife matter justice see reason taxpayers relieve wrongdoer part normal liability personal injury victim negligence happens soldier see principles tort law allow husband parent recover logically sustain right recover case qualms applying principles tort law novel state facts unless directed congress law torts developed almost exclusively judiciary england country common law methods exceptions tort liability depend upon legislation one function think feel free exercise constitution vests us judicial power apply well established common law principles case whose novelty facts courts england whose scruples legislating least sensitive normally hesitated say majesty treasury may recover outlay cure british soldier injury negligent wrongdoer wages meanwhile paid attorney general think hold much without suspected trying usurp legislative function footnotes instrument release recited payment construed admission liability government petition certiorari asserted instances negligently inflicted injuries upon soldiers requiring hospitalization government expense payment compensation incapacitation reported war department department justice past three years additional instances reported war department rate approximately month suit also said representative number already commenced atlantic coast line dismissed ground relationship existed klein action recover hospital medical expenses incurred result injury civilian conservation corps employee dismissed reason employees compensation act et et held afford government method recoupment concededly available including issues negligence contributory negligence stipulation record appeal circuit appeals evidence set forth stipulation omitted reason appellants making point appeal insufficiency evidence either prove negligence absence contributory negligence although district refused find etzel soldier servant plaintiff respondents designated points appeal intended rely cause action right recover compensation paid etzel medical hospital expenditures employee plaintiff plaintiff master relation employer employee exist release effective end right recover lost wages medical hospital expenses circuit appeals considering outset problem law apply said federal legislation conferring right subrogation indemnification upon seem state rules substantive common law govern action brought role private litigant erie tompkins seed supra pages page indicated agreement appellant california statutory law namely civil code controlling concluded government case fail two reasons first relation within scope code second government soldier within meaning code section page concluded however etzel release lost wages medical expenses elements damage therefore effective discharge liability including right subrogation statutory authority finally opinion stated seems clear congress intend tortious injuries soldier time war government subrogated soldier claims damages page see note government claim course one subrogation rather independent liability owing directly deprivation soldier services losses caused discharging duty care consequent upon injuries inflicted appellants see robert mary case effect tortious interference third person relation government soldier consequent harm government interest rights obligations relation simply subrogation soldier rights may assume release effective discharge liability owing independently government cf note although fully effective claim soldier independent liability found exist issue concerning release reached including powers congress common defense support armies rules government regulation land naval forces art well declare war make laws shall necessary proper carrying execution foregoing powers ibid decision circuit appeals seems predicated upon assumption congress override contrary rule state law california law governs absence congress affirmative action see note supra see art iv cl congress shall power dispose make needful rules regulations respecting territory property belonging camfield government respect lands rights ordinary proprietor maintain possession prosecute trespassers walter protect property criminal laws board commissioners jackson county deitrick greaney royal indemnity duhme federal deposit ins corporation allegheny county holmberg armbrecht see also discussion notes federal common law government action tort exceptions erie tompkins survival federal common law ruling followed waters interstate stream must equitably apportioned among flows arid regions west properly characterized merely one common law marks rate another area federal judicial decision dependent application state law indeed upon existence federal legislation problem government immunity suit different course nature substantive rights may acquire example purchase property claims others may may available legal remedy see blair commissioner reconstruction finance corporation beaver county potential added liability ever considered effect deter commission negligent torts imposition liability indemnify government addition indemnifying solider conceivably thought furnish additional incentive avoiding harms see note supra ancient action loss services existent braction day see wigmore interference social relations viii holdsworth history english law ii iv pollock law torts ed clerk lindsell torts ed extension action per quod servitium amisit domestic relations upon fictional basis took place early norton jason style see winfield textbook law tort ed analogies drawn concerning nature relation basis status underlying earlier forms liability asserted contractual character latter instance rather extent regarding drafted soldier entered implied law fiction loss services involved father action daughter seduction husband action loss consortium compare serjeant manning statement quasi fiction servitium amisit affords protection rich man whose daughter occasionally makes tea leaves without ledress poor man whose child sent unprotected earn bread amongst strangers note grinnell wells man gr phase stressing question determined applying state law emphasis put upon federal aspect case advancing thesis liability acceptance federal rule stress goes tort grounding argument government contend liability sought existed heretofore frankly urges creation new one decision determining matter come attention addition cases cited note high australia commonwealth quince denying liability see also attorney general reaching contrary result however principal issue apparently went concession see stat enticing desertion military naval service stat enticing workmen arsenals armories stat robbery personal property belonging stat embezzlement property belonging course necessary congress pass statutes imposing civil liability situations understood since days common law sovereign protected tortious interference thus trespass land belonging civil wrong remedied courts cotton necessarily element effect often always exists whenever new liability created common law nature responsibility tort however made invariably controlling consideration cases presenting issues concerning liabilities tribunals whose business primarily decide forestall growth law except legislative action factor however one generally taken account weighed social need dictating new responsibility cases squarely presenting issues complicated case considerations arising distributions power federal system