ERIE ANALYSIS

Step 1

Is the federal court deciding an issue No If federal question

of state law based on diversity or jurisdiction, then
supplemental jurisdiction? federal law prevails.

Yes

Apply each rule

Step 2
where applicable.

Is there a true conflict

between a state rule and a There is no “general federal common
federal rule that cannot be No law” (e.g., federal law of torts or
accommodated? contracts), so there can be no
conflict between state and federal
law in these clearly substantive
Yes
areas. State substantive common
law controls, per Erie RR v Tomkins
Step 3

If an irreconcilable conflict exists,

what is the source of the federal law?
4

Federal Practice/Common
1 2 3 Law: If the source of federal
law is decisional (judge-
FRCP: Federal Statute: U.S. made), then the court must
Controls as long Controls if it is Constitution: first determine if application
as it is within the constitutional. Controls, of the federal rule would
scope of the (Note: If it is notwithstanding affect the outcome of the
REA: Must “rationally state law or rule case in such a way as to
“really regulate classifiable as to the contrary. encourage forum shopping
procedure” and procedural”, and discriminate against
not abridge, then it is state residents. If not, apply
modify or constitutional federal law. If so, balance
enlarge any per Article III.) federal interest in application
substantive right. of federal rule against state
Must be interest in application of
otherwise state rule. Apply state rule
constitutional. unless federal interest is
stronger than state interest.