Erie Doctrine

Question 1

What is the Erie Doctrine?

Answer 1

In diversity cases, the federal court must apply state substantive law and federal procedural law.

Question 2

How does the court determine if a law is Substantive or Procedural?

Answer 2

To determine whether a law is substantive or procedural, the court will ask the following:

(1) If there is a federal rule on point, do the state and federal rules on the issue conflict? If no, apply the federal rule. If yes, move on.
(2) Is the use of one or the other outcome determinative? If yes, the rule is substantive and you apply the state rule. If no, move on.
(3) Would use of the federal rule violate significant federalism or state sovereignty concerns? If yes, apply the state rule. If no, move on.
(4) Would failing to follow state law encourage forum shopping in federal court? If yes, apply the state rule. If no, apply the federal rule.

Question 3

What legal issues are always substantive?

Answer 3

Elements of a claim or defense, statutes of limitations and choice of law rules are always substantive, and thus state law should apply.

Question 4

Recite the Structure for the Erie Doctrine.

Answer 4

Erie Doctrine 1. Federal Rule & Conflict? No  Federal Yes  Move on 2. Outcome Determinative? Yes  State No  Move on 3. Federalism/Sovereignty Issues? Yes  State No  Move on 4. Encourage Forum Shopping? Yes  State No  Federal Note: Elements of Claim/Defense, SOL, or Choice of Law? Yes  State