Erie Doctrine

Erie Doctrine

Does Federal Judge have to follow state law?
1. Erie: In diversity cases, federal judges must apply substantive law
  1. RDA 1652
  2. 10th Amendment
    1. Federal government cannot invade powers that are reserved to the states, and making of substantive law is for the states
  3. Substantive example: when someone is liable
  4. Hanna v. Plumer
    1. Hanna 2 Prongs
      1. 1. If there a federal directive on point? Some federal law that applies and conflicts with state law?
        If YES, is it valid?
        REA
        An FRCP is valid if it doesn't modify substantive rights
      2. Based on Supremacy Clause of Constitution
1. Outcome Determinative
1. Guanteed Trust
  1. Statute of limitations (will always be substantive) would be outcome determinative
2. Ignoring state law would cause a different outcome
3. Balance the interests
1. Byrd
2. Should apply state law unless federal court system has an interest in doing it differently
2. Twin Aims of Erie
1. Hanna
  1. 1. Avoid Forum Shopping
  2. 2. Avoid Inequitable Administration of law
  3. Question: If federal judge ignores this state law, will it cause parties to flock to federal court?
Analytical Appraoch to Solve Problems
1. 1. Hanna: Is there a federal directive on point?
  1. Yes
    1. Will win if it's valid, don't even do Erie analysis
  2. No
    1. 2. Erie Analysis
      1. Is it outcome determinative?
      2. Balance of the Interests?
      3. Twin Aims?
        Will ignoring the state law cause parties to flock to federal courts?
        Lead to forum shopping?
        Inequitable administration of laws?

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