Guaranty Trust Co v' York

1
Guaranty Trust Co v. York

• Issue?
• State S/L in diversity cases
• Decision
• State S/L applies
• Does the RDA apply to this case?
• Why or why not?
• What does that tell us about the basis for the
  Erie doctrine?

2
Discussion Hypo Under Guaranty
3
Burden of Proof Bifurcated Trial
4
Guaranty Trust Co v. York

• What test or approach does the court apply?

• Outcome Determinative
• Diversity jurisdiction should not
• Substantially affect outcome
• Significantly affect result
• So far as legal rules determine the outcome

• Clone
• Federal Courts in diversity cases are effectively
  only another court of the state.

5
Guaranty Trust Approach
Significant Effect on Outcome?
Yes
No
Apply Federal
Apply State
6
Two Quick Cases
7
Cohen v. Beneficial Industrial

• Issue?
• State bond requirement in derivative actions
• Decision
• Apply state bond requirement
• Note D argued that FRCivP governed and said
  nothing about requiring bond

8
Ragan v. Merchants Transfer
FRCivP 3 Says Action Commenced
State Law Says S/L Tolled
Event 2 Yrs
Suit Filed
Event
Service
Which Governs?
What theory?
Does this mean Erie trumps FRCivP?