Ch 4: Choice of Law: The Erie Doctrine

Question 1

What law governs an action commenced in U.S. district court?

Answer 1

The substantive law and rules of procedure that will govern the action must be determined

Question 2

In a federal question claim, what law controls?

Answer 2

Federal substantive and procedural law, as well as federal common law

Question 3

What substantive law must a district court apply in a diversity action?

Answer 3

State substantive law

Question 4

How does a district court determine which state’s substantive law applies in a diversity action?

Answer 4

By applying the conflict-of-law rules of the forum state

Question 5

What procedural law applies when a procedural issue in a diversity action is addressed by a valid federal law?

Answer 5

Federal law is applied

Question 6

What happens if no federal law applies to a procedural issue in a diversity action?

Answer 6

The district court must follow state law regarding substance

Question 7

What law applies when a federal court exercises supplemental jurisdiction over a state-law claim?

Answer 7

The substantive law of the state where the district court is located

Question 8

What is the first step in determining whether an issue involves substance or procedure under the Erie doctrine?

Answer 8

Determine whether there is a conflict between state and federal law

Question 9

If there is a conflict between state and federal law, what must the district court determine next?

Answer 9

Whether a valid federal statute or Federal Rule covers the disputed issue

Question 10

What must the court do if a Federal Rule is on point?

Answer 10

Determine if the Federal Rule abridges, enlarges, or modifies any substantive right

Question 11

What is the implication if a Federal Rule does not abridge, enlarge, or modify any substantive right?

Answer 11

The Federal Rule must be applied

Question 12

What should the court consider if a Federal Rule could be considered to modify a substantive right?

Answer 12

Determine if the Federal Rule only incidentally affects a litigant’s substantive rights

Question 13

What should a court do if no federal statute or rule is on point?

Answer 13

Determine whether federal common law should be applied

Question 14

Under what circumstances may federal common law apply?

Answer 14

When no applicable federal statute or constitutional provision exists

Question 15

In what types of cases does federal common law traditionally apply?

Answer 15

• Admiralty cases
• Cases in which the United States is a party
• Cases involving interstate disputes
• Cases implicating relations with foreign countries
• Cases in which the government acts in a proprietary role
• When Congress has left a gap in a statutory scheme

Question 16

What happens if the state’s highest court has not yet ruled on an issue?

Answer 16

The federal court must determine how the state’s highest court would rule

Question 17

What should a federal court do if no state court has considered the issue?

Answer 17

Determine how it believes the highest court in the state would rule

Question 18

What is the controlling law when a diversity case is transferred to another district court?

Answer 18

The law that would have been applied in the district court that transferred the case

Question 19

What must a U.S. district court with diversity jurisdiction do after determining state substantive law applies?

Answer 19

Apply the conflict-of-law rules of the forum state

Question 20

What issues are generally considered procedural and controlled by the law of the forum state?

Answer 20

• The proper court in which to bring an action
• The form of the action to be brought
• The sufficiency of the pleadings
• The effect of splitting a cause of action
• The proper or necessary parties to an action
• Whether a counterclaim may be brought
• Venue
• The rules of discovery
• The right to a jury trial
• Service of process
• The burden of proof
• Trial procedure
• The methods of enforcing a judgment

Question 21

What is the reason for applying state law where transferor court is located?

Answer 21

Convenience under § 1404(a)

Question 22

What is the controlling law if a case is transferred due to improper venue under § 1406?

Answer 22

State law where transferee court is located

Question 23

What must a federal court do if the state’s highest court rules differently after the federal suit is complete?

Answer 23

The federal appeals court is bound by the state court’s ruling

Question 24

What is the distinction between the substance-procedure distinction in federal-state conflicts and state-state conflicts?

Answer 24

It is not the same substance-procedure distinction that arises in state-state conflicts under Klaxon

Question 25

What is the purpose of conflict of laws?

Answer 25

To identify which state's laws will determine the parties' rights in cases with connections to multiple states ## Footnote This concept helps resolve legal disputes involving multiple jurisdictions.

Question 26

What does choice of law commonly refer to in a federal court?

Answer 26

Determining whether state or federal law controls a given issue in diversity cases ## Footnote This is relevant when federal courts deal with cases that involve parties from different states.

Question 27

In federal question jurisdiction, what law is applied?

Answer 27

Federal law ## Footnote This applies to cases where the issue arises under the Constitution, laws, or treaties of the United States.

Question 28

In diversity jurisdiction, what law is applied?

Answer 28

State law ## Footnote This applies when the parties are from different states and the amount in controversy exceeds a specified threshold.

Question 29

What law is applied in supplemental jurisdiction for state-law claims?

Answer 29

State law ## Footnote This allows federal courts to hear additional claims that are related to the original jurisdictional claim.

Question 30

What type of issues are considered substantive?

Answer 30

Elements of a claim, statutes of limitations, burden of proof ## Footnote These issues relate to the rights and duties of the parties involved.

Question 31

What type of issues are considered procedural?

Answer 31

Judge and jury allocation, assessment of attorney’s fees ## Footnote These issues relate to the methods and means of enforcing rights.

Question 32

What is the general approach when determining if an issue involves substance or procedure?

Answer 32

Consider whether there is a conflict between state and federal law ## Footnote If no conflict exists, both laws can be applied harmoniously.

Question 33

What does the Rules Enabling Act state about federal law?

Answer 33

It is arguably procedural and does not modify substantive rights ## Footnote This means that while federal rules can govern procedure, they should not change the underlying rights of parties.

Question 34

What is the Erie Analysis used for?

Answer 34

To determine whether to apply state or federal law in diversity cases ## Footnote It assesses if state law is outcome-determinative and if there is no countervailing federal policy interest.

Question 35

What are the limitations on federal district courts exercising diversity jurisdiction?

Answer 35

Bound by the conflict-of-laws rules of the state in which the court is located, valid under the Full Faith and Credit Clause and the Due Process Clause ## Footnote This ensures that state law is respected while adjudicating cases in federal court.

Question 36

Can states apply their own procedural laws and substantive laws of another jurisdiction?

Answer 36

Yes ## Footnote States often apply their own procedural rules while sometimes applying the substantive laws from other jurisdictions based on the conflict-of-laws rules.