In a diversity case, which law governs tolling of the statute of limitations?

In a diversity case, which law governs tolling of the statute of limitations?

• A. Federal law governs tolling
• B. Federal procedural law governs tolling
• C. The U.S. Constitution governs tolling
• D. State substantive law governs tolling

Answer: (D)

In diversity cases, the tolling of a statute of limitations is governed by the state’s substantive law. Under the Erie framework, a federal court sitting in diversity applies the forum state’s substantive rules, including how tolling affects whether a claim is timely. Tolling changes the substantive rights and liabilities created by state law, so it’s not a purely procedural matter that federal law would govern. The Constitution does not provide tolling rules, and federal procedural rules don’t dictate tolling in diversity. Therefore, state substantive law governs tolling.

In diversity cases, the tolling of a statute of limitations is governed by the state’s substantive law. Under the Erie framework, a federal court sitting in diversity applies the forum state’s substantive rules, including how tolling affects whether a claim is timely. Tolling changes the substantive rights and liabilities created by state law, so it’s not a purely procedural matter that federal law would govern. The Constitution does not provide tolling rules, and federal procedural rules don’t dictate tolling in diversity. Therefore, state substantive law governs tolling.