Erie Doctrine

Question 1

Erie Doctrine: Definition

Answer 1

Requires Fed ct. to apply state law except when a valid federal statute or rule applies, or in certain areas of special federal prerogative

Question 2

Three Categories of Erie Cases: No federal positive law

Answer 2

Court must decide whether to ignore state law and instead decided the issue on the judge’s opinon
-Resolved by determining whether ignoring state law would be likely to cause forum shopping for a different outcome…if forum shopping is likely, then state law must be applied

Question 3

Three Categories of Erie Cases

Answer 3

1. No federal positive law
2. Federal Rules
3. Federal Statutes

Question 4

Three Categories of Erie Cases: Federal Rules

Answer 4

If the rule in question can rationally be characterized as a rule governing procedure, and does not abridge, enlarge or modify a substantive right, it applies in lieu of state law

Question 5

Three Categories of Erie Cases: Federal Statute

Answer 5

Erie is not a limit on congress. If a federal statute governs the situation at hand it will always apply

Question 6

Applying to Judge Made Law:The Erie Decision

Answer 6

Erie rejected the idea that there was a “general” common law, and indicated that each state created its own common law. Fed courts had no power to create their own common law. State Law would apply

Question 7

Applying to Judge Made Law: Guarantee Trust and the “procedural” exception

Answer 7

Ruling that Erie applies only to matters of substance, not procedure and a court is free to ignore state procedural laws

Outcome determinative test: Any rule that may affect the outcome of a case is deemed substantive, rather than procedural.

Question 8

Applying to Judge Made Law: Byrd and redefining procedure

Answer 8

While procedure involving judge vs. jury could affect the outcome of a trial, it is only slightly outcome determinative.

Question 9

Applying to Judge Made Law: Hanna and forum shopping

Answer 9

New Test: Federal Court must only apply state law when failure to do so would likely result in forum shopping between state and federal courts because of the likelihood of a different outcome

Question 10

Clashes Between Federal Rules and State Law

Answer 10

Three-Step Analysis:

1. Does the federal rule truly govern the situation before the court?
2. Does the rule clash with state court?
3. Is it valid in fitting within the court’s authority granted by congress?
   - It must be a rule of practice/procedure or rule of evidence.
   - It cannot abridge, enlarge, or modify any substantive right

Question 11

Federal Statutes

Answer 11

Erie puts no limit on congress…if it is applicable statute, court applies it