Law Applied in Federal Court

Question 1

When the Erie Doctrine comes up

Answer 1

Diversity of citizenship case in federal court (so case will be based on state law)

The federal judge must decide a particular issue- must she follow state law or is she free to ignore state law?

Question 2

Approach to the Erie Doctrine

Answer 2

Step 1: Is there a federal law on point that directly conflicts with state law? If so, apply the federal law.

Step 2: If there is no federal law on point, the federal judge must apply state law if the issue to be decided is “substantive”

Step 3: If not one of the five clearly substantive issues, the federal judge must determine whether the issue is “substantive”
- Outcome determinative
- Balancing interest factors
- Avoid forum shopping

Question 3

5 issues that are clearly “substantive”

Answer 3

Must apply state law to these issues:
* Conflict (or choice) of law rules
* Elements of a claim or defense
* Statutes of limitation
* Rules for tolling statutes of limitations
* The standard for granting a new trial because the jury’s damages award was excessive or inadequate

Question 4

Federal Common Law

Answer 4

Erie means there is no general federal common law (judge made law).

But there are areas in which federal courts are free to make up common law on their own, because state court will not create state common law.

E.g., admiralty law