In federal courts sitting in diversity, which law governs substantive rights?

In federal courts sitting in diversity, which law governs substantive rights?

• A. Federal procedural rules.
• B. State substantive law.
• C. The Constitution.
• D. The rules of court administration.

Answer: (B)

In diversity cases, the law that governs substantive rights comes from the state where the federal court sits. This reflects the Erie doctrine: a federal court in diversity applies the state’s substantive law on issues like the elements of a claim, defenses, and the appropriate statute of limitations, while federal procedural rules govern the way the case is litigated. The Constitution sets the overall federal framework, but it doesn’t determine the substantive rights in these cases, and rules about court administration are procedural, not substantive. So state substantive law controls the outcome on the merits, with federal procedural rules handling how the case is brought and tried.

In diversity cases, the law that governs substantive rights comes from the state where the federal court sits. This reflects the Erie doctrine: a federal court in diversity applies the state’s substantive law on issues like the elements of a claim, defenses, and the appropriate statute of limitations, while federal procedural rules govern the way the case is litigated. The Constitution sets the overall federal framework, but it doesn’t determine the substantive rights in these cases, and rules about court administration are procedural, not substantive. So state substantive law controls the outcome on the merits, with federal procedural rules handling how the case is brought and tried.