A plaintiff from State A files a lawsuit against a defendant from State B in federal court based on diversity jurisdiction. The plaintiff's claim relies on a specific statute unique to State B. What law should the federal court apply to determine the substantive issues of the case?
In diversity jurisdiction cases, federal courts apply the substantive law of the state in which they sit. This includes state statutes and case law, ensuring consistency with state substantive rules while maintaining federal procedural rules. Therefore, the federal court should apply State B's law.
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