ErieDoctRules - Swift Federal courts sitting in diversity...

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Unformatted text preview: Swift Federal courts sitting in diversity are not obligated to follow state decisional precedent Erie Except when dealing exclusively with a federal question, the law that must be applied under diversity jurisdiction must be that of the law of the state. While the rules of decision act allowed federal courts to apply their own rules of procedure in common law actions, state law governs substantive issues. State law includes not only statutory law but case law also. Guaranty Trust A federal court sitting in diversity should not apply any federal doctrinal law that would cause a different outcome if used over a state statute. If a federal courts disregard for a state law would “significantly affect the result” of diversity litigation, the federal court will be bound by state law. The main point of Erie is to ensure that a claim being brought in federal court due to diversity should not change the outcome of the case substantially Byrd a federal court sitting in diversity need not follow state law that allocates the fact finding roles of judge and jury...
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