Except in matters governed by the federal Constitution or by acts of Congress, the law to be applied in any case is the law of the state.Moreover, whether the law of the state shall be declared by its legislature in a statute or by its highest court in a decision is not a matter of federal concern.This rule to be applied by the federal court system is found in

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The rule that the law to be applied in any case is the law of the state, except in matters governed by the federal Constitution or by acts of Congress, is established in the case of Erie Railroad Company v. Tompkins. This case overruled the previous precedent set in Swift v. Tyson, which had allowed federal courts to create their own common law in certain cases. The Uniform Commercial Code is a set of laws that deal specifically with commercial transactions and is not relevant to this question.

Except in Matters Governed by the Federal Constitution or by Acts