Law Applied in Federal Court Flashcards
In a diversity of citizenship claim - how should a federal judge decide a particular issue?
The ERIE Doctrine!
What is the Erie Doctrine?
3) of there is no federal law on point, and the issue is NOT one of 5 listed above - the federal judge MUST determine whether the issue is SUBSTANTIVE
1) Is there some federal law (i.e. Constitution, federal statute, FRCP, or Federal Rule of Evidence) on point that directly conflict with state law?
— if so – apply the federal law as long as it is valid (presumptively valid and are ok if they are ‘arguably procedural’)
2) If there is no federal law on point, the federal judge must apply STATE law if the issue to be decided is “substantive”
– 5 issues that are clearly substantive:
— (a) conflict of law rules; (b) elements of a claim or defense; (c) statutes of limitation; (d) rules for tolling statutes of limitations; (e) the standard for granting a new trial bc the jury’s damages award was excessing or inadequate.
(use factors of: outcome determinative; balance of interests; avoid forum shopping)
What factors must the court look to when making the determination of whether an issue is “substantive”?
1) Outcome determinative: would applying or ignoring the state rule affect the outcome of the case? if so, it’s probably a substantive rule - so court should use STATE law
2) balance of interests: does either the federal or state system have strong interest in having its rule applied? The one with the greater interest should have its law applied.
3) Avoid Forum shopping: f the federal court ignores state law on this issue, will it cause parties to flock to federal court? if so - court should apply STATE law.
Is there federal common law?
Yes! Erie just states that there is no GENERAL federal common law (i.e. general common law of torts, contracts, and property are STATE law - and court must apply state law).
BUT there are areas where Federal courts are free to make up common law on their own (i.e. international relations, admiralty, disputes between states. right to sue a federal officer for violating one’s federal rights).
**there is NO role for STATE law here - that is why FCL is ok!
