Erie Doctrine (for Diversity Jurisdiction) Flashcards
What is the Erie Doctrine?
A fed court, when exercising diversity jurisdiction, must use the substantive law of the state in which it sits, including the state’s conflict of laws rule. Procedural laws must follow federal procedural rules.
What happens if there is a federal code or rule of civil procedure?
Then the federal procedural rule must be followed.
What must federal courts apply in the absence of federal law?
Federal courts must apply state substantive law based on state statute and/or highest court decisions.
What type of issues are considered substantive under the Erie Doctrine?
Issues such as
* Statute of Limitations,
* Tolling,
* Choice of Law,
* and Elements of Claim or Defense.
What is the significance of the Statute of Limitations in relation to substantive law?
It is considered substantive law and follows state law.
What does Tolling refer to in legal terms?
Pausing the clock on the Statute of Limitations.
When is an issue classified as a Choice of Law issue?
When there is a choice of following federal or state law.
What is the Outcome Determinative Test?
An issue is substantive if it affects the outcome of the case.
What is a key takeaway from the Guaranty Trust v. York case under the Outcome Determinative Test?
A fed court exercising jurisdiction based on diversity must abide by any state legal rule that would be outcome determinative if held in state court.
What does the Balance of Interests Test assess?
It assesses whether the state government or federal government has the greater interest in decision-making.
whoever has a greater interest, then their law must be applied
What does the Forum Shopping Deterrence Test aim to prevent?
courts should follow the state law if failing to do so would cause an unfair advantages for litigants in federal court.
What should a federal court do if a state statute covers both substantive and procedural issues?
The federal court follows the substantive portion and ignores the procedural portion.
What standard does a federal court use to interpret state substantive laws?
The federal court uses a ‘de novo’ standard to reach a decision and applies the highest state court decision.
What happens when a federal judge is asked to interpret state law?
The federal court interprets the law as consistent with state law/precedent.
Fill in the blank: If no federal code or rule of civil procedure exists, a judge can do what ______.
he/she wants procedurally.
