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Supreme Court of the United States - 446 U.S. 740
Tags: Civil Procedure, Choice of Law
In the case Walker v. Armco Steel Corp. (1980), James Walker sued Armco Steel, an Ohio corporation, in federal court due to their diverse citizenship. Walker, an Oklahoma citizen, was injured by a falling steel rod from an Armco truck. He filed his complaint within Oklahoma's two-year statute of limitations but didn't serve Armco until over 60 days later. Armco argued for dismissal, claiming the statute of limitations had expired. They said that, under Oklahoma law, the action isn't deemed as started until the defendant is served (or within 60 days of complaint filing).
Walker countered that, per Federal Rule of Civil Procedure 3, the action starts upon complaint filing, regardless of service timing. The district and appeals courts dismissed the complaint, holding that Oklahoma law applied and the action was time-barred. The Supreme Court agreed, invoking the Erie doctrine, mandating federal courts to follow state substantive law in such cases. It differentiated this case from Hanna v. Plumer and maintained that Rule 3 only applies to federal rules.
By applying Oklahoma law, the Court reinforced the principle of federalism, preventing forum shopping and unfair legal administration. This case highlights the complex balance between enforcing state substantive law and federal procedural law and the interpretation of Rule 3 and state statutes of limitations in civil actions.
The Supreme Court held that in a diversity case, a federal court should follow state law in determining when an action is commenced for the purpose of tolling the state statute of limitations. The Court rejected the argument that Rule 3 of the Federal Rules of Civil Procedure governed the tolling of the state statute of limitations. The Court held that the service of summons statute was an integral part of the state statute of limitations, and under York, the statute of limitations was part of the state-law cause of action. Therefore, the Court could not give the cause of action longer life in federal court than it would have had in state court without adding something to the cause of action, which would be inconsistent with Erie R. Co. v. Tompkins. In a civil action based on diversity of citizenship, the Federal Rule 4(d)(1) governs the manner in which process is served, rather than state law, in the absence of a conflicting state procedure. The court in this case will not overrule Ragan and will instead apply its established law, as Rule 3 governs the timing requirements of the Federal Rules but does not affect state statutes of limitations.
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