Erie Question

Question 1

When to Discuss an Erie Question

Answer 1

Arises only in diversity cases: whether to apply state law or federal law, because in diversity cases state substantive law applies and federal procedural law applies.

Question 2

Erie Question Analysis

Answer 2

(1) If there is a federal rule on point, do the state and federal rules/laws on the issue conflict?
(2) if not, the inquiry is over and you use the federal rule
(3) if they do, is the use of one or the other outcome determinative? If yes, the rule is substantive and you use the state rule or law.
(4) if not, would use of the federal rule violate significant federalism or state sovereignty concerns? If so, use the state law
(5) if not, would failing to follow state law encourage forum shopping in federal court?
(6) in any case, elements of a claim or defense, statutes of limitations, and choice of law rules are substantive, use state law.