Erie Analysis

Question 1

Is it a federal question?

Answer 1

If yes, apply federal law.

If no, then diversity case, apply erie analysis.

Question 2

Is there a conflict between state and federal rule?

Answer 2

If no, no need for erie analysis

If yes…

Question 3

Is there a federal treaty or federal rule (FRCP, FRE) that conflicts with state law?

Answer 3

If yes, apply federal law.

If no, apply erie analysis.

Question 4

Erie analysis: Procedural or substantive question

Answer 4

Courts must apply state substantive law, and federal procedural law. If unclear: Three tests

Question 5

Twin aims (Hanna v. Plumer)

Answer 5

1. Avoid forum shopping
   * If feds ignore state law, will it cause parties to flock to federal court.
2. Avoid inequitable administration of law.

Question 6

Outcome Determinative Test (Guaranty Trust co. v. York)

Answer 6

If applying federal law, substantially affects the outcome, apply state law.

Question 7

Balancing Test (Byrd v. Blue Ridge)

Answer 7

If there are countervailing interests for federal court system or state court system, weigh those interests in determining if the issue is substantive.
*If strong federal policy at stake - apply federal law.