ERIE DOCTRINE

Question 1

Erie Doctrine

Answer 1

When a case is in federal court on diversity jurisdiction, the Erie Doctrine requires the federal court to apply the law of the state in which the court sits for substantive issues and federal law for procedural issues.

Question 2

Erie Doctrine - Nature of Issue Unclear

Answer 2

If it is unclear whether a law is substantive or procedural, the court will apply one of the following tests to

(i) determine whether the rule is outcome determinative (if application of the state law would determine the outcome of the case, the issue is substantive and state law must be applied)
(ii) weigh the interests of state and federal judicial authorities in applying their own laws, or
(iii) determine whether the application of the federal law will encourage forum shopping

Question 3

California - Conflicts of Law Rule
Torts

Answer 3

In California, if two or more state laws are involved in a tort matter and the states’ laws conflict, the court determines which state’s law should be applied by evaluating the comparative impairment to each state’s interest

Question 4

California - Conflicts of Law Rule
Contracts

Answer 4

In California, if a contract contains a choice of law provision, courts will apply the chosen state’s law as long as it substantially relates to the parties or contract and does not conflict with California public policy. If the choice of law provision is nonexistent or deemed unenforceable, the court determines which state’s law should be applied by evaluating the comparative impairment to each state’s interest.