Erie Doctrine (Writing Template) Flashcards
Erie Doctrine - Fed Courts+Diversity Case
Under the Erie Doctrine, a federal court in a diversity case, is required to apply the substantive law of the state in which it is sitting, but must apply federal procedural rules. However, a federal procedural rule will NOT be applied over a state statute of limitations. Here,
Necessary and Proper Clause
The necessary and proper clause allows federal courts to apply federal procedural rules. In addition, federal courts will apply some state “procedural” rules when those rules have no bearing on the mechanics of the federal court system. Here,
Federal Courts in CA
A federal court in CA sitting in diversity MUST apply CA’s conflicting laws rules in determining the applicable substantive law.
Conflict of Laws issue in Tort Actions - Government Interest Approach
The court first determines whether the laws of the 2 (or more) states are identical. If they are not, the court evaluates whether each state has an interest in the application of its law. If each state has such an interest, a true conflict exists and the court will then analyze the comparative impairment to each state’s interest should the law of the other state be applied. Here,
Conflict of Laws issue in K Actions - Choice of Law Clauses
If the choice of law clause in a contract encompasses all the cause of action, the court must determine whether the clause is enforceable by examining whether the chosen state’s laws has a substantial relationship to the parties of their transaction or any other reasonable basis exists for the parties’ choice of law.
If the clause is enforceable, the court will then assess whether the chosen state’s laws conflicts with a fundamental CA policy, if such a conflict exists, the court must decided whether CA has a materially greater interest than the chosen state in the determination of the specific issue. If the K does not contain a choice of law clause, or if its unenforceable, the government interest approach usually applies. Here,
Substantive Law for Erie Purposes
Statute of Limitations
Tolling of a SOL
Choice of law rules
Elements of a claim or defense
Outcome Determinative Test
An issue is substantive if it substantially affects the outcome of the case
Balance of Interests Test
Court weighs whether the state or federal judicial system has a greater interest in having its rules applied
Forum Shopping Test
Federal courts may use the state law on the issue if failing to do so would cause litigants to flock to federal courts.
