In diversity cases, which law governs substantive matters and procedure?

In diversity cases, which law governs substantive matters and procedure?

• A. Federal courts apply state substantive law and federal procedural rules.
• B. Federal courts apply federal substantive law and federal procedural rules.
• C. Federal courts apply state substantive law and state procedural rules.
• D. Federal courts apply state substantive law and local procedural rules.

Answer: (A)

Erie doctrine sets the rule: when a federal court sits in diversity, it uses state substantive law and federal procedural rules. Substantive law covers rights, duties, and issues that affect the outcome of the case, including which state's law governs those issues. The federal rules of procedure govern how the case moves through the court system, ensuring uniform federal court administration regardless of state. Choosing federal substantive law would undermine Erie by importing federal rules into substantive matters, which could vary outcome by forum. Relying on state procedural rules would disrupt uniform federal court procedure. Local procedural rules aren’t the governing framework for federal diversity cases; federal procedural rules apply.

Erie doctrine sets the rule: when a federal court sits in diversity, it uses state substantive law and federal procedural rules. Substantive law covers rights, duties, and issues that affect the outcome of the case, including which state's law governs those issues. The federal rules of procedure govern how the case moves through the court system, ensuring uniform federal court administration regardless of state.

Choosing federal substantive law would undermine Erie by importing federal rules into substantive matters, which could vary outcome by forum. Relying on state procedural rules would disrupt uniform federal court procedure. Local procedural rules aren’t the governing framework for federal diversity cases; federal procedural rules apply.