Henry J. Friendly, In Praise of Erie -- And of the New Federal Common Law, 39 N.Y.U. L. Rev. 383 (1964)
Pretty much what the title sounds like. Not directly useful, but some passages are interesting, for the usual reason, that they indicate some understanding of federalism limits on federal court power ("power" construed broadly, not necessarily meaning "jurisdiction").
On 395: "Yet it would be even more unreasonable to suppose that the federal courts have a law-making power which the federal legislature does not."
Also on 395: "It is true enough that a state court can make law without any specific authorization in a constitution or statute. But that is not a valid basis for reasoning in the case of a government whose legislature has only such powers as are specifically granted. The spectacle of federal judges being able to make law without possibility of Congressional correction would not be a happy one."
References
Textile Workers v. Lincoln Mills, 353 U.S. 448 (1957) -- read this for links between jurisdiction and lawmaking power and judicial power and federal power generally.
Borak v. J.I. Case Co.. The case at the circuit court level was 317 F.2d 838.
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