The Erin Doctrine provides that a federal court sitting in d

The Erin Doctrine provides that a federal court sitting in diversity jurisdiction over law claim must apply state substantive common law in resolving the dispute. Discuss, in your own words, the importance of the Etie Doctrine and the role it plays today.

Solution

Erie Doctrine states that when federal courts are dealing cases involving issues related with state’s substantive law, it should apply state law and not federal law. When the issues are related to procedural law, federal courts should apply federal law. The substantive laws are the laws that create and regulate the rights and duties of people and entities. People file case in federal law based on diversity jurisdiction when the parties are from different states. Erie Doctrine provides the provision for the parties to continue with the case as per their state laws and do not allow federal court to have complete control over the decision. The importance of Erie arises when there is a conflict on whether to apply state law or federal law and it try to ensure that the outcome of the litigation is not completely different when it is filed in a federal court instead of state court. The state substantive laws are different from the federal laws in many states and the litigants may simply file cases in federal court instead of state court to take advantage of these differences in laws. Hence Erie Doctrine plays an important role today to ensure justice.