Erie Doctrine

Question 1

What law are diversity claims based on?

Answer 1

State law

Question 2

Erie doctrine

Answer 2

Determines whether a court applies federal or state law to a particular issue in a diversity case

1. Is there a valid federal law that directly conflicts with the state law?
   -If so, apply the federal law (supremacy clause)
   -Apply applicable FRCP if its arguably procedural
   If not, move to next step
2. Apply “substantive” state law
   -Conflict or choice of law rules
   -Elements of a claim or defense
   -Statute of limitations
   -Tolling rules
   -Standard for granting a new trial because the jury’s damages aware was excessive or inadequate
3. If issue isn’t arguably procedural or doesn’t fall into one of the substantive state law categories, court determines whether an issue is substantive based on:
   -Outcome determinative
   -Balance of interests
   -Avoid forum shopping

***Step 3 is highly unlikely to be tested because the test is unclear

Question 3

Federal common law

Answer 3

Erie means there is no general federal common law because federal courts must apply state substantive law in diversity cases

Areas where federal common law exists:
-International relations
-Admiralty
-Disputes between states
-Right to sue a federal officer for violating one’s federal rights
-Preclusion