Erie Doctrine

Question 1

Erie Doctrine: Step 1

Answer 1

• Check to see if there is some fed law on point that directly conflicts with state law.
• IF so, apply the fed law as long as it is arguably procedural (valid)
• DO NOT forget this step

Question 2

Erie Doctrine: Step 2

Answer 2

• If there is no fed law on point, the fed judge must apply state law if the issue to be decided is substantive

Question 3

Substantive Issues

Answer 3

• 5 issues that are clearly substantive and fed ct must apply state law:
  (1) Conflict (choice) of laws
  (2) Elements of a crime/defense
  (3) SOL
  (4) Rules for tolling SOL; and
  (5) Standard for granting a new trial b/c the jury’s damages award was excessive/inadequate

Question 4

Erie Doctrine: Step 3

Answer 4

If there is no fed law on point and the issue is not one of the 5 listed, fed judge must determine whether the issue is substantive by considering some factors

Question 5

Factors a judge considers for Step 3

Answer 5

(1) Outcome determinative: Would applying/ignoring state rule affect the outcome of the case? If so, it is likely a substantive rule, so ct should apply state law
(2) Balance of interests: Does either fed/state ct have a strong interest in having its rule applied? The one with the stronger interest should have its law applied
(3) Avoid forum shopping: If fed ct ignores state law on this issue, will it cause parties to flock to fed ct? If so, the ct should likely apply state law

Question 6

Federal Common Law

Answer 6

• Erie means there is no general FCL
• CL of torts, Ks, & property is state law, and fed cts must apply that substantive law in a diversity case
• But there are areas in which fed cts are free to make up CL on their own