What outcome involves the application of state substantive law in civil actions?

The application of state substantive law in civil actions primarily relates to the calculation of damages. In civil cases, the amount a party may recover is determined by the substantive laws of the state, which set forth the legal standards and rules pertaining to damage awards. These laws specify how damages should be computed—whether they are economic, non-economic, punitive, or any other categories—as well as the applicable limits or caps on those damages.

Understanding this concept is crucial because it highlights the fact that substantive law governs the actual claims and rights of parties in a civil lawsuit, including what types of damages are available and how they are quantified. When determining damages, courts will look to the governing state law to ensure that the award aligns with the established legal framework, thus emphasizing the significance of state law in civil proceedings.