In Junе, 1968, appellees Burger Chef Systems, Inc., Robert Holtzman and William Platt entered into negotiations with appellant Walko Corporation with a view to leasing a plot on which to build a restaurant. Burger Chef ultimately decided against the venture and communicated its decision to Walko on January 26, 1971. 1 Walko protested, but sought no legal recourse until November, 1973, when it moved to intervene in a suit 2 then pending in the District Court for the District of Columbia between Burger Chef and the individual appellees. 3 That court found Walko’s allegations of breach of contract and misrepresentation to be “entirely unrelated” either in law or fact to the litigation before it, and denied Walko’s motion on January 15, 1974. 4
Six weeks later, on February 28, 1974, Walko instituted the present diversity 5 suit in the District Court for the District of Maryland by filing a complaint virtually identical to that proffered in its prior attempt at intervention. 6 The Maryland action was transferred to the District Court here, 7 where summary judgment was granted to appellees on grounds that Walko’s claims were barred by a Maryland statute of limitations. 8
The District Court properly found that Walko’s action is governеd by the three-year period established by the Maryland statute.
9
The court apparently also
I
Shortly after Erie Railroad Company v. Tompkins 12 reinterpreted the Rules of Decision Act 13 to hold that state substantive law is to govern diversity actions in the federal courts, the Supreme Court held in Guaranty Trust Company v. York 14 that limitation periods for such actions — whether nominally “substantive” or “procedural” —are to be determined by reference to state law. Central to this holding was the concept that “the outcome of the litigation in the federal court should be substantially the same, so far as legal rules determine the outcome of a litigation, as it would be if tried in a State court.” 15
The York “outcome” test was later found in Ragan v. Merchants Transfer & Warehouse Company 16 also to require federal courts to look to state law to ascertain when the applicable statute of limitations is tolled. Kansas by statute had defined the “commencement” of an action once for general purposes and a second time with specific reference to its statutes of limitations. 17 The latter definition provided that only service of process tolled the statute, 18 not, as Rule 3 of the Federal Rules of Civil Procedure implies, 19 the mere filing of a complaint. This tolling provision was held controlling in the diversity action before the Court, notwithstanding Rule 3. 20 The reason was simple:
Since [the] cause of action is created by local law, the measure of it is to be found only in local law. ... It accrues and comes to an end when local law so declares. . . . Where local law qualifies or abridges it, the federal court must follow suit. Otherwise there is adifferent measure of the causе of action in one court than in the other, and the principle of Erie ... is transgressed. 21
In the ease at bar, however, all parties argue from Rule 3 — which Ragan held inapplicable to measure state-created causes of action — on the premise that Ragan has been overruled sub silentio by Hanna v. Plumer. 22 At issue in Hanna was whether in a diversity case service of process must be made in the manner prescribed by state law or that of the Federal Rules. 23 Hanna’s holding for application of the Federal Rule 24 is perceived by many 25 to at least question Ragan’s choice of state tolling rules over those implicit in Rule 3.
Hanna
does render the “brooding omnipresence”
26
of
Erie
less ubiquitous, but it does not banish altogether the “outcome” test enunciated in
York,
as
Hanna
itself indicates.
27
Rather, it holds that the applicability to diversity litigation of an otherwise controlling
28
Federal Rule is conditioned on its compliance
29
with the
Were it contended, then, that this litigаtion “commenced” on some other day than
Resultantly, we face a “relatively unguided
Erie
choice”
42
under the Rules of Decision Act.
43
This choice we conceive to hinge on the degree to which state poliсies, other than those primarily directed to administration of the state judicial system,
44
would be impeded by displacement of the state rule by federal common law.
45
We must be guided also by reference to the twin aims of
Erie:
the desire to forestall forum-shopping
46
and the conviction “that
II
The concerns addressed by state legislators and judges with respect to suspensions of a state statute of limitations are similar to those that preoccupy them in the process of determining when a state-created cause of action accrues, or how long the applicable limitation period ought to be. That these latter questions are to be governed by state law is long since settled. 48 We would be tampering with рolicy choices best made in intimate relation to those determinations were we to substitute a federal judgment as to whether a particular occurrence should arrest the statute’s running. Logically, those choices should be made within parameters established by those charged with formulating other state rules imposing limitations on inauguration of litigation. Not surprisingly, then, fеderal courts have looked to state law to determine whether a plaintiff’s disability 49 or a defendant’s absence 50 interrupts the running of a state statute of limitations. While the federal decisions are not unanimous in their selections of the law defining the effect of proceedings previously pending, 51 we find the issue at bar sufficiently similar to disability and absence to command deference to state law there as well.
The rectitude of recourse to state law in this circumstance is underscored by the Supreme Court’s adoption for a federal cause of action in Johnson v. Railway Express Agency 52 of a state’s most nearly applicable limitation period as well as the suspension, tolling and revival provisions with which the state provision was freighted. Relying on the state rule refusing to toll the time limit on civil rights actions for the period during which related proceedings were pending, the Court rested its holding on grounds that
[ i]n virtually all statutes of limitations the chronological length of the limitation period is interrelated with provisions regarding tolling, revival, and questions ofapplication. In borrowing a state period of limitation for application to a federal cause of action, a federal court is relying on the State’s wisdom in setting a limit, and exceрtions thereto, on the prosecution of a closely analogous claim. 53
Interposition of a federal rule in these premises would, moreover, be productive of the very mischief that Erie and its progeny are designed to deter. If federal courts hold time-barred cases that state courts would have entertained, nonresident defendants could gain advantаge by removal 54 not only over their diverse adversaries 55 but also over resident or non-diverse defendants 56 and all those whose stake was less than the jurisdictional amount prerequisite to removal. 57 If, conversely, federal courts hear diversity cases not timely by the lights of state tribunals, plaintiffs with large claims against diverse parties may escape the consequences of state law, thus faring better than those to whom the federal courts are closed. The very disparity between plaintiff and plaintiff, defendant and defendant, wrought by accidents of residence and the amount colorably in controversy, would encourage forum-shopping. And that disparity would be attributable solely to a federal court’s policy disagreement with the custodians of state law over the consideration to be given to a plaintiff’s good-faith attempt to press a state-created right vis-a-vis a potential defendant’s interests in early notice and eventual repose of litigable disputes. The Rules of Decision Act 58 gives federal courts no license to shape the policy for diversity litigation, and we refuse in this case to fashion such a license for ourselves.
Lastly, we note that suspension of a state statute of limitations on a nonfederal claim by reason of the pendency of other proceedings has only the remotest effect on federal judicial administration. Federal judges need shoulder no new burdens, 59 nor will the normal fact-finding processes of the federal courts be constrained in any way. 60 Adherence to state law in this regard will affect thе efficiency of the federal system only insofar as it dictates that a case not time-barred under state rules be heard in a federal court.
Ill
We are persuaded that the vitality of Walko’s claim is to be determined by state law. The question then arising is whether, under the applicable Maryland statute of limitations, the pendency of Walko’s unsuccessful motion to intervene in the Burger Chef litigation prolonged the lifespan of the claim. We find Maryland law unclear on that score. Fortunately, however, Maryland has enacted the Uniform
Was the statute of limitations prescribed by Md. Courts and Judicial Proceedings Code Ann. § 5-101 (1974) suspended during the pendency of appellant’s motion to intervene in Civil Action No. 1317-72 in the United States District Court for the District of Columbia among the corporate and individual appellees herein?
Order accordingly.
Notes
. These facts, so far as we have stated them, аre not in dispute. Cf. note 10 infra.
. Holtzman v. Burger Chef Syss., Inc., Civ.No. 1371-72 (D.D.C.).
. Appendix to Brief for Appellant (App.) 1.
. Holtzman v. Burger Chef Syss., Inc., supra note 2 (memorandum and order January 15, 1974), App. 8-9.
. See 28 U.S.C. § 1332(a) (1970). Walko is a Delaware corporation. Holtzman and Platt are residents of Maryland. Burger Chef is an Indiana corporation with its principal place of business outside Delaware.
. Compare App. 3-7 with App. 10-14.
. Pursuant to 28 U.S.C. § 1404(a)(1970) on the joint motion of all parties. Brief for Appellant at 2.
. Walko Corp. v. Burger Chef Syss., Inc., Civ.No. 74-674 (D.D.C.) (orders of Dec. 13, 1974), App. 36-37.
. As we later recite, text
infra
at notes 14-15,
Guaranty Trust Co. v. York,
. Walko v. Burger Chef Syss., Inc., supra note 8, (orders of Dec. 13, 1974, App. 36-37). On this accrual date all agree. Compare Brief for Appellant at 3 with Brief for Appellee Burger Chef at 4.
. See Part III infra.
.
. “The lаws of the several states, except where the Constitution or treaties of the United States or Acts of Congress otherwise require or provide, shall be regarded as rules of decision in civil actions in the courts of the United States, in cases where they apply.” 28 U.S.C. § 1652 (1970).
. Supra note 9.
.
Id.
.
. Compare
id.
at 531 n. 4,
.
Ragan v. Merchants Transfer & Warehouse Co., supra
note 16,
. “A civil action is commenced by filing a complaint with the court.” Fed.R.Civ.P. 3. As this provision is generally construed, filing tolls the statute of limitations on federal causes of action, see 4 C. Wright & A. Miller, Federal Practice & Procedure § 1056 at 177-178 (1969), although the Advisory Committee’s notes recognized that such a construction was contingent upon “whether it is competent for the Supreme Court, éxercising the power to make rules of procedure without affeсting substantive rights, to vary the operation of the statute of limitations.” Id. § 1051 at 167 n. 21.
.
Ragan v. Merchants Transfer & Warehouse Co., supra
note 16,
.
Id
at 533,
.
. State law required that executors be served in hand, whereas service was effected consonantly with Fed.R.Civ.P. 4(d)(1), permitting service by delivery “at his dwelling house or usual place of abode with some person of suitable age and disсretion then residing therein.”
Hanna v. Plumer, supra
note 22,
.
Id.
at 463-464,
. See
id.
at 476-477,
. Compare Clark, State Law in the Federal Courts: The Brooding Omnipresence of Erie v. Tompkins, 55 Yale L.J. 267 (1946), with Ely, supra note 17, at 698, and McCoid, Hanna v. Plumer: The Erie Doctrine Changes Shape, 51 Va.L.Rev. 884, 887 (1965).
.
.
Hanna
v.
Plumer, supra
note 22,
. The Rules Enabling Act, set out at note 31
infra,
specifies a period of ninety days during which proposed rules must lie before Congress. If Congress disapproves, it may — and has, see Act of Mar. 30, 1973, Pub.L. No. 93-12, 87 Stat. 9 — pass legislation suspending the operation of
.
Hanna v. Plumer, supra
note 22,
. The Rules Enabling Aсt, 28 U.S.C. § 2072 (1970), provides in pertinent part:
The Supreme Court shall have the power to prescribe, by general rules, the forms of process, writs, pleadings, and motions, and the practice and procedure of the district courts of the United States in civil actions.
Such rules shall not abridge, enlarge or modify any substantive right and shall preserve the right of trial by jury as at common law and as declared by the Seventh Amendment to the Constitution.
Such rules shall not take effect until they have been reported to Congress by the Chief Justice at or after the beginning of a regular session thereof but not later than the first day of May, and until the expiration of ninety days after they have been thus reported.
. See note 13 supra.
.
Guaranty Trust Co. v. York, supra
note 9,
.
Hanna v. Plumer, supra
note 22,
. See text at note 5 supra.
. See generally cases cited supra note 25. As we do not have the potential conflict inherent in Ragan, we express no view on the likely result of such a reevaluation.
. See, e. g.,
Accardi v. United States, 435
F.2d 1239, 1241 (3rd Cir. 1970); Roman v. A.
H. Robins Co., Inc.,
. See e.
g., Filson v. Fountain,
. See, e.
g., Braun v. Sauerwein,
. See, e.
g., Gonzalez v. Fireman’s Fund Ins. Co., 385
F.Supp. 140, 143 (D.P.R.1974).
Cf. Binkley v. Teledyne Mid-America Corp.,
. See text and notes supra at notes 16-25.
.
Hanna v. Plumer, supra
note 22,
. See note 13 supra.
. See
Hanna v. Plumer, supra
note 22,
.
Hanna v. Plumer, supra
note 22,
.
Hanna
v.
Plumer, supra
note 22,
.
Hanna v. Plumer, supra
note 22,
.
Guaranty Trust Co. v. York, supra
note 9 (state limitation periods applicable);
Nardone v. Reynolds,
.
E. g., Roman v. A. H. Robins Co., Inc., supra
note 37,
.
E. g., Dedmon v. Fails Prods., Inc., supra
note 38,
. Compare
Eisler
v.
Stritzler,
.
.
Id.
at 463—464,
. Pursuant to 28 U.S.C. § 1441(b) (1970), all state court defendants whose cases might have been brought originally in a federal court may remove them to an appropriate federal court, except those who are residents of the forum state.
Patch v. Wabash R. R. Co.,
. Whose claims would not have been barred in the state court.
. See note 54 supra.
. See 28 U.S.C. § 1332(b) (1970) (federal courts have no jurisdiction to hear diversity cases in which the amount in controversy is less than $10,000).
. 28 U.S.C. § 1652, set out in supra note 13.
. See
Hanna v. Plumer, supra
note 22,
.
Cf. Byrd v. Blue Ridge Elec. Coop., supra
note 44,
. Md. Cts. & Jud.Proc.Code Ann. § 12-601 (1976):
The Court of Appeals may answer questions of law certified to it by the Supreme Court of the United States, a Court of Appеals of the United States, a United States District Court ... when requested by the certifying ■:i '■ court if there is’ involved in any proceeding before the certifying court a question of law of this state which may be determinative of the cause than pending in the certifying court and as to which it appears to the certifying court there is no controlling precedent in the Court of Appeаls of this state.
. We are mindful that “[n]eedless [federal] decisions of state law should be avoided both as a matter of comity and to promote justice between the parties, by procuring for them a surer-footed reading of applicable law,”
UMW v. Gibbs,
