Swift v. Tyson
Significance
The decision allowed federal courts hearing civil cases based on diversity jurisdiction to create their own body of common law. Diversity jurisdiction is a special way for a federal court to gain jurisdiction over a case. Generally, federal courts hear only matters of federal concern. However, they can preside over a case that concerns state law if the parties to the case live in different states and the controversy involves a dollar figure that exceeds a minimum threshold amount.
Additional topics
Law Library - American Law and Legal InformationNotable Trials and Court Cases - 1833 to 1882Swift v. Tyson - Significance, The Need For A Uniform System Of Commerce, Impact