Law Applied in Federal Court (Module 6)

Question 1

The Erie Doctrine

Answer 1

Step 1: Is there a federal law on point that directly conflicts with state law?
* If yes, you apply that federal law so long as it’s valid (supremacy clause)
* If it’s a FRCP, it’s presumptively valid if it’s arguably procedural

Step 2: Federal judge must apply state law, if issue is substantive (5 substantive issues) and no applicable federal law

Step 3: Determining whether issue is substantive
* Outcome determinative
* Balance interest factors
* Avoid forum shopping

Question 2

5 “Clearly Substantive” Issues

Answer 2

1. Conflict or choice of law rules
2. Elements of a claim or defense
3. Statutes of limitations
4. Tolling of statutes of limitations
5. Standard of granting a new trial because the jury’s award was excessive or inadequate

Question 3

Federal Common Law

Answer 3

• Erie means there is no general federal common law.
• Federal common law will govern for preclusion purposes
• 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.
• But there are areas in which federal courts are free to make up common law on their own.
• 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).