Law Applied in Federal Court (ERIE Doctrine) Flashcards
Does ERIE apply to both FQ and Diversity?
NO!! Only in diversity.
What does the Erie Doctrine address?
What law must a federal court apply when hearing a diversity case.
What are the elements of the Erie Doctrine?
Step 1:
Is there a federal law (Constitution, fed statute, FRCP, FRE) on point that directly conflicts with state law?
Yes –> Apply federal law if valid. (If FRCP and even arguable procedural, it is presumed valid). Test ends.
No –> Proceed to Step 2.
Step 2:
If no federal law on point, the judge applies state law if the issue is substantive. 5 issues are clearly substantive for the bar:
(1) Conflict (or choice) of law rules;
(2) Elements of a claim or defense
(3) Statutes of limitation (including date the suit commences).
(4) Rule for tolling statutes of limitations; and
(5) The standard for granting a new trial b/c jury’s damages award was excessive or inadeqaute.
If none of the 5, continue to step 3.
Step 3:
Law is unclear, and Steps 1 and 2 didn’t help. Apply the following factors:
(A) Outcome determinative: Substantive if applying / ignoring the state rule would affect the outcome of the case.
(B) Balance of Interests: Does either the feds / state have strong interest in having its rule applied. Greater interest should apply.
(C) Avoid forum shopping: If feds ignore state law on this issue, will it cause parties to flock to federal court? If so, then apply state law.
Is there a federal common law?
Erie says that there is no general federal common law (Torts, contract, property is state common law) and feds must apply state common law in diversity cases.
But there are areas where courts can make up common law (International relations, admiralty, disputes between states, the right to sue a federal officer for violating one’s federal rights. In these areas, there is no role for state law. One important area of FCL is that FCL governs for preclusion (but in diversity cases, FCL follows state law on preclusion).
