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The United States Supreme Court has determined that when a case is brought in a Federal Court on the basis of Diversity Jurisdiction , and not because of an issue of Federal Law , the federal court must use the Substantive Law of the state in which it sits, but the Procedural Law of the federal court system. The outcome of the trial should not be dependent on whether it is tried in federal or state court: procedure should not affect the substance of the case.

Sometimes procedure ''can'' affect the outcome, and there is no clear dividing line between procedural law from substantive law. For example, a Statute Of Limitations bars a claim from being filed after a certain number of years from the time of the incident prompting the claim. Federal courts and state courts sometimes conflict in this area, so it might be possible to try the case in federal court even though the statute of limitations prevents the case from being tried in the state court. For this reason, the state statute of limitation has been deemed to be substantive law and not procedural, in order to prevent claimants from filing in a federal court simply to get a different result.