Law Applied in Federal Court / Erie Doctrine

Question 1

The Erie Doctrine Analysis

Answer 1

Step 1: Is there sme federal law on point that directly conflicts with state law? If so, apply the federal law, so long as it is valid.

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” Substantive issues are: conflict (or choice) of law rules; elements of a claim or defense; statutes of limitation; rules for tolling statutes of limitations; and the standard for granting a new trial because the jury’s damages award was excessive or inadequate

Step 3: If there is no federal law on point and the issue is not one of the 5 above, the judge must determine whether the issue is “substantive”. Factors include: outcome determinative, balance of interests, and the avoidance of forum shopping

Question 2

Federal common law?

Answer 2

Erie means there is no general common law. So the general common law of torts, contracts, and property is state law, and federal courts must apply that state substantive law in a diversity case. B ut there are areas in which federal courts are free to make up common law on their own