Choice of Law: The Erie Doctrine

Question 1

Rule for a Federal Question case?

Answer 1

federal law will apply for both substantive and procedural law, plain and simple (as well as federal common law)

Question 2

what about in a diversity case?

Answer 2

court applies state substantive law of the state in which the district court is located

Question 3

what about procedural law in a diversity case?

Answer 3

if a procedural issue is addressed by a valid federal law (ie a statute, FRE, or ESPECIALLY FRCP) then it is considered “procedural” and the federal law will apply, even if state law conflicts

Question 4

what if there is no applicable federal law?

Answer 4

then the general rule gets applied, but the court can choose to ignore state law with regard to procedure under certain circumstances

Question 5

sometimes the tough question is determining whether to deem the law as substantive (so follow state law) or procedural (follow federal law), what do you do then?

Answer 5

wade into Erie’s murky waters

Question 6

what is the first step when you wade into Erie’s waters?

Answer 6

determine whether there is a conflict between state and federal law. if there is not, then the analysis does not need to proceed any further and the court can apply state and federal law harmoniously

Question 7

what if there is a conflict between the state and the federal law?

Answer 7

ask whether a valid federal statute or federal rule covers the disputed issue

Question 8

what happens if there is a valid federal statute or rule of procedure on point?

Answer 8

then apply the federal law rather than the state law

Question 9

how does the analysis change if it is a “Federal Rule” rather than a “Federal Statute”?

Answer 9

most of the time the federal rule will also apply just like above unless it does not just incidentally affect substantive rights (so meaning it effects it purposely or deliberately) and abridges, enlarges, or modifies a sub right (meaning it is not valid under Rules Enabling Act)…so i guess then the federal rule wont apply if this is all true -_-

Question 10

what if there is no statute or rule on point after wading into Erie’s waters?

Answer 10

the court will ask whether the failure to apply state law will lead to different outcomes

Question 11

if the failure to apply state law will not lead to different outcomes?

Answer 11

then the district court will generally apply federal common law, rather than state law

Question 12

if the failure WILL lead to a different outcome

Answer 12

apply state law to prevent forum shopping

Question 13

instead of doing the above (outcome determinative analysis), what is another analysis the court can use?

Answer 13

who has a greater interest and applying the law whose policy is of greater importance

Question 14

what is yet another analysis that can be used instead of the above?

Answer 14

if there is overcrowding of the federal court system, then the court will follow state law to prevent the overcrowding

Question 15

what is federal common law?

Answer 15

judge made federal law that overrides any inconsistent state or local law or rule

Question 16

when is federal common law made?

Answer 16

only when they encounter important federal interests that are not covered by statute; there is no general federal common law (some areas that are usually controlled by the states, are off limits to federal common law)

Question 17

what are some common examples of where federal common law applies:

Answer 17

boundary disputes between states, admiralty cases, cases implicating relations with foreign countries, claim preclusion, etc

Question 18

how does federal common law apply to diversity cases?

Answer 18

when a “uniquely federal interest” is at stake and a significant conflict exists between that interest and the operation of state law

Question 19

how does a court determine applicable state law?

Answer 19

1) follow precedent from the highest state court
2) if there is no precedent, predict how the highest court would rule by giving respectful attention to the decisions of lower state courts (not binding)

Question 20

common examples are what considered “substantive law” and therefore state law is applied:

Answer 20

-elements of a claim or defense
-statutes of limitations
-burdens of proof
-rules on choice of law

Question 21

common examples of areas that are considered procedural:

Answer 21

judge/jury allocation, assessment of attorney’s fees, whether an issue is legal or equitble