State Law in Federal Court

Question 1

What law is applied under the Erie doctrine?

Answer 1

In diversity jurisdiction cases, federal district courts must apply the substantive law, including choice of law provisions, of the state where the court sits

Question 2

When is a state statute considered substantive under Erie?

Answer 2

When it is outcome determinative in a direct + certain way that encourages forum shopping

Question 3

How does a court apply Erie if a law is arguably substantive in that it is outcome determinative without defining rights / obligations?

Answer 3

Can apply judge made federal common law after a balancing of the interests

Question 4

How is a codified federal rule such as FRCP or FRE treated?

Answer 4

Codified federal rule must be applied in federal court

Question 5

What is the Klaxon Rule?

Answer 5

In federal district diversity cases, must apply choice of law rules in state in which it sits

Question 6

What is an exception to the Klaxon Rule?

Answer 6

IF diversity case properly filed in one state but transferred to another state via venue > THEN first state choice of law applies