Law Applied In Federal Court

Question 1

Diversity cases in federal court based on state law. Can judge ignore state law?doctrine is….

Answer 1

The Erie Doctrine

Question 2

Erie doctrine Step 1:

Answer 2

Is there a federal law (constitution, fed statute, FRCP, FREv) on point that directly conflicts with state law?

If so —> Federal law wins based on supremacy clause

Question 3

Erie doctrine step 2:

Answer 3

It no federal law on point, fed judge must apply state law to substantive issues.

Question 4

What are substantive issues under the Erie doctrine?

Answer 4

Conflict or choice of law rules
Elements of a claim or defense
Statutes of limitation
Rules for tolling statutes of limitations
Granting new trial because jury award was excessive

Question 5

Erie doctrine step 3:

Answer 5

If no federal law on point, issue not substantive main issue, judge must determine if issue is substantive.

Question 6

Judicial considerations to consider what amounts to substantive issues

Answer 6

Issue determine the outcome?

Does federal or state law have an interest in this issue? Greater interest prevails

Will it cause forum shopping?

Question 7

Federal common law….

Answer 7

Does not exist. Torts, contracts, and property law is common state law.

Federal courts must apply that state substantive law in diversity case.