Law Commons^™

Retroactive Application Of Law-A Problem In Constitutional Law, Edward S. Stimson

Michigan Law Review

May an overruling decision be applied to ascertain the legal effect of prior conduct? In cases arising under the diversity of citizenship jurisdiction, the United States Supreme Court has held that the federal courts should apply earlier state court decisions, and not a decision overruling them, whenever the retroactive application of the new rule would adversely affect a party who had changed his position in reliance on the decisions overruled. In the absence of such reliance and change of position it has sustained the retroactive application of a new rule. If the basis of the first principle is elemental fairness …