Civil Procedure — Erie Doctrine & Federal Common Law

Watch Federal Civil Procedure Deep Dive: Law Applied in Federal Court (Or Read UBE CC: Module 6)

What does the Erie doctrine determine?

Whether a federal court must apply state law to a particular issue.

In what cases does this module apply the Erie doctrine?

Diversity and alienage cases involving state-law claims.

Do claims in a diversity case arise under federal law?

No. They are state-law claims.

What is the first step in an Erie analysis?

Ask whether a valid federal directive governs the issue and directly conflicts with state law.

What sources may provide a federal directive?

The U.S. Constitution, federal statutes, Federal Rules of Civil Procedure, and Federal Rules of Evidence.

What law applies when a valid federal directive governs the issue and conflicts with state law?

The federal directive.

What constitutional principle supports applying valid federal law over conflicting state law?

The Supremacy Clause.

Are the Federal Rules of Civil Procedure presumptively valid?

Yes.

How does the lecture describe the validity standard for an FRCP?

It is valid if it is arguably procedural.

What pleading requirements apply in federal court in a diversity case?

Federal pleading requirements, including Rule 8.

What discovery rules apply in federal court in a diversity case?

The federal discovery rules in the FRCP.

Do different state pleading or discovery rules displace valid federal rules governing the issue?

No.

What is the second step in an Erie analysis?

If no federal directive governs the issue, determine whether the issue is clearly substantive.

What law must a federal court apply to substantive issues in a diversity case when no federal directive governs?

State law.

What five issues does the lecture identify as clearly substantive?

Choice-of-law rules; elements of claims or defenses; statutes of limitations; tolling rules; and standards for a new trial based on excessive or inadequate damages.

What choice-of-law rules does a federal court apply in a diversity case?

The choice-of-law rules of the state in which it sits.

What law supplies the elements of a state-law claim or defense in a diversity case?

State law.

What statute of limitations applies to a state-law claim in a diversity case?

The applicable state statute of limitations.

What law governs tolling of the statute of limitations for a state-law claim in a diversity case?

State law.

What standard governs whether a jury's damages award is excessive or inadequate in a diversity case?

The applicable state-law standard.

When does the third step of an Erie analysis become necessary?

When no federal directive governs and the issue is not clearly classified as substantive.

What three factors does the lecture identify for classifying an unclear issue?

Outcome determination, balance of federal and state interests, and avoidance of forum shopping.

What does the outcome-determinative factor ask?

Whether applying or ignoring the state rule would affect the outcome of the case.

What does an outcome difference generally favor?

Applying state law.

What does the balance-of-interests factor ask?

Whether the federal or state system has a stronger interest in applying its rule.

What does the forum-shopping factor ask?

Whether ignoring the state rule would encourage parties to choose federal court to avoid that rule.

What should a federal court generally do if ignoring a state rule would encourage forum shopping?

Apply the state rule.

Do the Step 3 factors provide a clear mechanical answer?

No. They require weighing the factors and reaching a reasonable conclusion.

What does Erie say about general federal common law?

There is no general federal common law.

What is common law?

Judge-made law.

What law ordinarily supplies general tort, contract, and property rules?

State law.

Does Erie eliminate all federal common law?

No. Specific federal common law exists in certain areas involving federal interests.

What areas of specific federal common law does the lecture identify?

International relations, admiralty, disputes between states, certain federal-rights claims against federal officers, and the preclusive effect of federal judgments.

What law governs the preclusive effect of a federal judgment?

Federal common law.

What two forms of preclusion are discussed in the lecture?

Claim preclusion and issue preclusion.

What is the basic three-step Erie sequence?

Check for a valid federal directive; check for a clearly substantive issue; then evaluate outcome, interests, and forum shopping if classification is unclear.