APPLICABLE LAW

1. Erie Doctrine
a. Under the Erie Doctrine, a federal court sitting in diversity must apply state substantive law of the state where it sits, and federal procedural law.
b. An Erie analysis consists of two distinct steps. First, the court asks if there is a federal law law on point directly conflicting with state law. If so, then federal law
applies, provided it’s valid. Second, if no federal law is on point, then the court must discern whether the issue is substantive or procedural in nature. Some
issues are clearly procedural. However, if the nature of the issue is unclear, then courts apply three tests: (1) Outcome Determinative (2) Balacing of Interests and
(3) Forum Shopping.
i. Federal Law On Point?
1. Directly Conflicts With State Law?
2. Valid Federal Law?
ii. Substantive v. Procedure
1. Some Issues Are Clearly Substantive
2. Nature of Issue Unclear