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Berk v. Choy · ¶17

State-law claims are usually brought in state court. But if the parties are citizens of different States and the amount in controversy exceeds a certain threshold, a plaintiff may choose to sue in federal court. 28 U. S. C. § 1332. In that event, the federal court faces a choice-of-law problem: whether to apply state or federal law. The Rules of Decision Act directs federal courts to apply state substantive law, leaving federal law to cover the rest. § 1652. Following that direction is harder than it looks, because determining whether a state law is substantive requires a court to enter “Erie's murky waters.” Shady Grove Orthopedic Associ ates, P. A. v. Allstate Ins. Co., 559 U. S. 393, 398 (2010).
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