Gasperini v. Center for Humanities, Inc., 518 U.S. 415, 15 (1996)

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Cite as: 518 U. S. 415 (1996)

Opinion of the Court

Petitioner 2 ("[T]he state as a matter of its substantive law may, among other things, eliminate the availability of damages for a particular claim entirely, limit the factors a jury may consider in determining damages, or place an absolute cap on the amount of damages available, and such substantive law would be applicable in a federal court sitting in diversity."); see also Tr. of Oral Arg. 4-5, 25; Consorti, 72 F. 3d, at 1011.9 Although CPLR § 5501(c) is less readily classified, it was designed to provide an analogous control.

New York's Legislature codified in § 5501(c) a new standard, one that requires closer court review than the common-law "shock the conscience" test. See supra, at 422-423. More rigorous comparative evaluations attend application of § 5501(c)'s "deviates materially" standard. See supra, at 423-425. To foster predictability, the legislature required the reviewing court, when overturning a verdict under § 5501(c), to state its reasons, including the factors it considered relevant. See CPLR § 5522(b); supra, at 423-424. We think it a fair conclusion that CPLR § 5501(c) differs from a statutory cap principally "in that the maximum amount recoverable is not set forth by statute, but rather is determined by case law." Brief for City of New York as Amicus Curiae 11. In sum, § 5501(c) contains a procedural instruction, see supra, at 426, but the State's objective is manifestly substantive. Cf. S. A. Healy Co. v. Milwaukee Metropolitan Sewerage Dist., 60 F. 3d 305, 310 (CA7 1995).

It thus appears that if federal courts ignore the change in the New York standard and persist in applying the "shock

9 While we have not specifically addressed the issue, courts of appeals have held that district court application of state statutory caps in diversity cases, postverdict, does not violate the Seventh Amendment. See Davis v. Omitowoju, 883 F. 2d 1155, 1161-1165 (CA3 1989) (Reexamination Clause of Seventh Amendment does not impede federal court's postverdict application of statutory cap); Boyd v. Bulala, 877 F. 2d 1191, 1196 (CA4 1989) (postverdict application of statutory cap does not violate Seventh Amendment right of trial by jury).

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