Law Applied in Fed Court

Question 1

When a claim is in federal court due to diversity jdx, which law applies?

Answer 1

A diversity jdx claim is a state law claim. Apply the Erie doctrine to see which rule applies. (General rule is that federal law applies for procedure, state for substance).

(1) Is there a federal law that is directly on point & conflicts with state law? If so, that applies. (e.g. FRCP)
(2) If no federal law on point, apply state law if substantive issue. If either choice of law, elements of claim or defense, statute of lim/tolling SoL, or standard for granting new trial due to excess damages then DEF state law.
(3) if not one of areas listed above, do erie test = (a) is law outcome determinative (b) federal vs state interest in applying law, (c) will not applying state law lead to forum shopping? (most likely answer is yes to these)

Question 1

When a claim is in federal court due to diversity jdx, which law applies?

Answer 1

A diversity jdx claim is a state law claim. Apply the Erie doctrine to see which rule applies. (General rule is that federal law applies for procedure, state for substance).

(1) Is there a federal law that is directly on point & conflicts with state law? If so, that applies as long as it is valid.
Note: an FRCP governs as long as it is valid, i.e. arguable procedural, essentially ALL are valid

(2) If no federal law on point, then:
(a) apply state law if the issue is substantive:
- - DEF substantive: conflict/choice of law, elements of claims or defense, SoL or tolling SoL, standard for granting new trial due to jury damages being excessive/inadequate
- - if not one of the above, ask: outcome determinative? balance of federal vs. state interests in applying their law, will ignoring state law cause more forum shopping?
(b) apply federal law if the issue is NOT substantive

Question 2

What are the five types of laws that are definitely considered substantive for purposes of erie analysis?

Answer 2

1. conflict of law rules/choice of law
2. elements of claims/defenses
3. statute of limitations
4. rules re tolling of SoL
5. standard for granting new trial based on jury damages being excessive or inadequate