Today we're going to look at whether federal or state law should apply in a diversity jurisdiction case with Erie Railroad Co. v. Tompkins, 304 U.S. 64 (1938). Here, Tompkins brought an action in federal court under diversity jurisdiction against Erie Railroad, and this court had to look at whether or not the federal courts were bound to apply state law or if "federal common law" ruled the day. In the end, the court in Erie found that federal common law would not exist and and state law would be applied in these cases.
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