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Federal Rules of Civil Procedure (FRCP) QUESTION #3687
Question 1
In a diversity action in federal court in State A, the court must decide which statute of limitations to apply. State A has a 2-year limit, while State B (where the accident occurred) has a 4-year limit. There is no Federal Rule of Civil Procedure governing the limitation period. Under the Erie doctrine, what should the court do?
  • Apply the federal common law 3-year limitation.
  • Apply State A's 2-year limit, because statutes of limitations are substantive for Erie purposes.✔️
  • Apply State B's 4-year limit, because the accident happened there.
  • Apply whichever limit is more favorable to the plaintiff to ensure access to justice.
Correct Answer Explanation
Under Guaranty Trust Co. v. York, statutes of limitations are outcome-determinative and therefore substantive for Erie purposes. A federal court sitting in diversity must apply the statute of limitations of the state in which it sits.