The Erie Doctrine

Question 1

What does an Erie question ask?

Answer 1

Here, we have a diversity of citizenship case in federal court. The federal judge must decide a particular issue. When she decides that issue, must she follow state law or is she free to ignore state law?

Question 2

What are the 3 steps to approaching an Erie question?

Answer 2

1. Conflicting federal law?
2. If not, apply state law if issue is substantive.
3. If you’re not sure whether the issue is subsantive, apply 3 factors.

Question 3

What is step one to approaching an Erie question?

Answer 3

If there is some federal codified law (like federal constitution or statute or FRCP or Federal Rule of Evidence) on point that directly conflicts with state law, apply the federal law, as long as it is valid. This is based on the supremacy clause.

Question 4

Let’s say a FRCP is on-point and conflicts with state law. We know it governs as long as it is valid. How do we know if a FRCP is valid?

Answer 4

The FRCP are presumptively valid and are OK if they are “arguably procedural.” None has ever been held invalid.

Question 5

What is step two to approaching an Erie question?

Answer 5

If there is no federal law on point, the federal judge must apply state law if the issue to be decided is “substantive.” Five issues are clearly “substantive”:

(1) Elements of a claim or defense
(2) Statute of limitations

(3) Rules for tolling statutes of limitations,
(4) Conflict (or choice) of law rules, and
(5) Standard for whether to grant a new trial because
a jury’s damages determination is excessive
or inadequate.

In these cases, the federal court must apply state law.

Question 6

What is step three to approaching an Erie question?

Answer 6

If there is no federal law on point and the issue is not one of the five just listed, the federal judge must determine whether the issue is “substantive.” The law is very unclear, consisting of some factors that no one knows how to weigh:

a. Outcome determinative: Would applying or ignoring the state rule affect outcome of case? If so, it’s probably a substantive rule, so should use state law.
b. Balance of interests: Does either federal or state system have strong interest in having its rule applied?
c. Avoid forum shopping: If the federal court ignores state law on this issue, will it cause parties to flock to federal court? If so, should probably apply state law.

Question 7

Erie means there is no GENERAL _______ common law.

Answer 7

federal

Question 8

The general common law of torts, contracts,
and property is _____ law, and federal courts must
apply it’s substantive law in a diversity case.

Answer 8

state

Question 9

There are areas in which federal courts are free to
make up common law on their own.

For example:

Answer 9

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 federal common law is the preclusive effect of a federal judgment.