Guaranty trust v york in order to ensure eries aims

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Guaranty Trust v. York: In order to ensure Erie’s aims, how should we judge a conflict between sate an federal procedural rules? i. Rule from York: The main point of Erie is to ensure that a claim being brought in federal court due to diversity won’t have its outcome changed substantially, so, if following a federal practice that differed from state procedure might “significantly affect the result of litigation,” the court must apply the state rule. B. Byrd v. Blue Ridge Rural Elec. Coop. and Hanna v. Plumer, modern efforts to enunciate a workable test: 1. Problems arise from Erie and York b/c the outcome determinative test is problematic: it stands to swallow up the FRCP completely this is because: a. The adoption of the federal rules was intended to promote uniformity across the federal courts. i. But with the way things stood with a broad outcome determinative test from York, the rules would never be followed: (a) Any procedural rule if not complied with will affect the outcome of the litigation. b. Byrd: How to apply So. Carolina worker comp statute (who determines if was a “statutory employee” under state law: Judge or jury)? But 7th AMD declares that a person has const right to trial by jury, so new balancing test that displaces York outcome determinative test i. Rule: State laws that affect the procedure of the fed crt b/c they contravene the const. shall be ignored. Thus a Balancing Test: Where a procedural issue isn’t covered by the FRCP, the relative importance of the state and fed interests will be viewed together and the greater the effect (outcome determinative), the more likely the state rule will control 2. Rules Enabling Act (REA) §2072: written in 1937 and tries to settle issues presented by RDA and Erie a. §(a): SC has the right to promulgate the FRCP (but) b. §(b): Such rules can’t abridge or enlarge any substantive rights i. So state law must be followed when there is a “substantive right” involved (but) substantive is an amorphous concept (as we see in Hanna) c. Hanna v. Plumer: where there is a question as to whether a law is substantive or procedural how is it determined w/ regard to the REA §2072? i. Hanna’s rule (if there’s a conflict btwn a fed and state rule, apply FRCP) controls where there’s a fed rule on point that’s in conflict w/ a state rule. The REA says that the fed rule must be used unless it abridges, enlarges or modifies a substantive right 22
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(a) If a procedural issue is covered by both FRCP and a incompatible state law, FRCP controls ii. Hanna Two part analysis: (a) Hanna 1: (essentially dicta, concerning whether the MA in hand svs rule trumped the fed r 4) (1) Hanna 1 views the issue under the RDA (unless otherwise est by const… laws of states prevail) and says that we look at any issue under RDA thru 2 aims of Erie: (i) Prevent forum shopping, (ii) prevent inequitable administration of law (1) (This recasts York’s outcome determinative test (which says that if a fed rule of procedure would affect the outcome, we have to use the state rule.) So the question is if this svs rule would lead to forum shopping and inequity? Probably not, so Hanna 2 is used (b)
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