Via this post from How Appealing, the answer, according to Judge Easterbrook in Reiser v. Residential Funding Corp., is so what, the district court still has to go by what the Court of Appeals says, because that is the natural order of things.
Well, I guess that makes sense, but it seems like kind of a shame, because the District Court judges from Virginia almost surely know a lot more about the state of Virginia law than do the Court of Appeals judges from another state - any other state.
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