Also known as:enabling statute · enabling act · enabling acts
Written by attorneys · grounded in primary & secondary sources — see below
A federal statute, principally the Rules Enabling Act, that authorizes the Supreme Court to prescribe rules of practice and procedure for the federal district courts, provided the rules do not abridge, enlarge, or modify any substantive right.
Sources & Authorities
How it applies
Common Examples
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Diversity Action Tests Enabling Statute
Edith Eberhardt sued Evergreen Bank in federal court under diversity jurisdiction after a contract dispute. The bank argued that a state procedural limit barred the claim. The court applied the federal rule because the Rules Enabling Act supplied the necessary authority for the procedural directive.
Class Certification Under Enabling Authority
Eduardo Enriquez filed a class action in federal court against Elemental Pharmaceuticals for underpaid insurance interest. A state statute would have barred class treatment. The court held that the federal class rule controlled because the Rules Enabling Act validated the procedural mechanism.
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Cases
Study Supplements
Ezra Eastman challenged a merger agreement between two corporations. The board had approved terms that locked in the deal. The court examined whether the enabling statute permitted such defensive measures without additional shareholder approval.
Omnicare, Inc. v. NCS Health Care, Inc.818 A.2d 914 (Del. 2003)
Derivative Suit Demand Under Enabling Rules
Eugene Ellsworth brought a derivative action against a fund's directors. The complaint omitted any demand on the board. The court looked to the enabling statute and federal rule to decide whether the demand requirement could be excused.
Kamen v. Kemper Financial Services, Inc.500 U.S. 90 (1991)
Insider Trading Liability via Enabling Statute
Esme Ellington traded on nonpublic information received from a corporate insider. Prosecutors relied on the enabling statute that defined the scope of fiduciary duties. The court assessed whether the statute extended liability to the tippee.
United States v. Chestman947 F.2d 551, 557 (1991) (en banc) (emphasis added), cert. denied, 503 U.S. 1004 (1992)
Settlement Class Under Enabling Authority
Eileen Epstein sought certification of a settlement class covering future asbestos claims. Objectors argued that the enabling statute and rule did not permit binding absent claimants. The court evaluated whether the procedural framework allowed the proposed structure.
Amchem Products, Inc. v. Windsor521 U.S. 591 (1997)
Common questions
Frequently Asked
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Do enabling statutes permit a corporation to mortgage its real property?+
Yes. Corporate enabling statutes expressly authorize a corporation to secure its obligations by mortgage or pledge of any property or income unless the articles impose a restriction.
Does proper filing of articles of organization under an enabling statute create a separate LLC entity?+
Yes. Once articles of organization are properly filed, the LLC exists as a legal entity distinct from its members even if the members fail to maintain separate bank accounts.
Can a reimbursement bylaw adopted under an enabling statute apply to an election whose record date already passed?+
No. The enabling statute permits reimbursement bylaws but limits their application to elections whose record date falls on or after the bylaw's adoption date.
May a corporate name implying regulatory authority be approved under an enabling statute?+
No. The name must not state or imply a purpose beyond those permitted by law and the articles of incorporation.
Can a statutory conversion under an enabling statute admit a creditor as a limited partner?+
Yes. A conversion plan that automatically allocates ownership interests to prior noteholders admits those persons as limited partners by operation of the enabling statute.
521 U.S. 591 (1997)Civil Procedure
…of Appeals, mindful that Rule 23's requirements must be interpreted in keeping with Article III constraints, and with the Rules Enabling Act, which instructs that rules of procedure "shall not abridge, enlarge or modify any substantive right," 28 U. S. C. § 2072(b). See also Fed. Rule Civ. Proc. 82 ("rules shall not be construed…