2 - choice of law theories

Question 1

3 CoL theories

and federal diversity cases

Answer 1

Vested Rights
Interest Analysis
Most Significant Relationship
federal diversity cases

Question 2

Vested Rights

Answer 2

Concept
Application
Problem of Characterization

Question 3

Vested Rights - Concept

Answer 3

1. Law applies only w/in territorial boundaries of the sovereign.
2. Apply the law of the place where the parties’ rights are vested (where the LAST EVENT OCCURRED necessary to create a cause of action)

Question 4

Vested Rights - Application

Answer 4

3 steps

1. Characterize the area of law (tort, K, property, family law)
   a. What type of substantive claim is being asserted
   b. Is the issue substantive or procedural
2. Identify CoL rule applicable
   a. Torts - law of the place where the wrong (injury) occurred
   b. K - law of the place where K was made (or was performed)
   c. Procedure - law of the forum
3. Apply the rule to identify the state whose law governs the issue (localize the rule)

Question 5

Vested Rights

problem of characterization

Answer 5

Essential but ambiguous step in VR approach
Courts can manipulate the characterization to reach a desired CoL result
TEST TIP: If a case/issue can reasonably characterized in 2 different ways (i.e. tort and K, or tort and procedure), 1) Note that fact and 2) apply both rules

Question 6

Interest Analysis

Answer 6

Concept

Application

Question 7

Interest Analysis - Concept

Answer 7

1. Makes CoL determination on EACH ISSUE
2. Begins w/assumption that forum will apply its own law BUT at the party’s request, it will examine its policies and the policies of other affected states to determine whose law should apply.
3. Analyzes the POLICIES BEHIND THE CONFLICTING LAWS of the relevant states and the extent to which those policies and interests would be advanced by the application of the respective states’ laws to the case at hand.

Question 8

Interest Analysis - Application

Answer 8

1. Identify the policies
2. Identify the state interests
   2a. False conflicts
   2b. True conflicts
   2c. Unprovided for cases

Question 9

Interest Analysis - Application

1. Identify the policies

Answer 9

Identify the policies that underlie the conflicting laws.

may be a creative inquiry

Question 10

Interest Analysis - Application

2. Identify the state interests

Answer 10

Determine whether each law’s APPLICATION in the case at hand WOULD SERVE THE POLICIES that underlie the law.
This includes determining whether each state’s policy extends to the circumstances of the case
(Whether each state has a legitimate interest in having its policy applied to the case)
This analysis will yield false conflicts, true conflicts, or unprovided for cases

Question 11

Interest Analysis - Application

2a. False conflicts

Answer 11

Application of one state’s law will further legitimate policy objectives of that state;
application of the other state’s law will not further legitimate policy objectives of that state.
For false conflicts, apply the law of the only interested state.

Question 12

Interest Analysis - Application

2b. True conflicts

Answer 12

Application of one state’s law will frustrate legitimate policy objectives of the other state;
application of the other state’s law will not frustrate legitimate policy objectives of the first state
For true conflicts, apply the law of the forum.

Question 13

Interest Analysis - Application

2c. Unprovided for cases

Answer 13

Neither states’ law would further that states underlying policy objectives (not often)
For unprovided for cases, apply the law of the forum.

Question 14

Most Significant Relationship

Answer 14

Concept

Application

Question 15

Most Significant Relationship - Concept

Answer 15

Apply the law of the state which has the Most Significant Relationship to the occurrence or transaction and the parties.

Question 16

Most Significant Relationship - Application

Answer 16

Determine which state has the MSR to the parties, occurrence, transaction by applying Controlling Principles and Relevant Contacts

Question 17

Most Significant Relationship - Application

Controlling Principles

Answer 17

1. Relevant policies of the forum (interest analysis)
2. Relevant policies of other interested states and the relative interests of those states in the determination of the particular issue (interest analysis)
3. Protection of JUSTIFIED EXPECTATIONS
4. Certainty, PREDICTABILITY & UNIFORMITY of result

Question 18

Most Significant Relationship - Application

Relevant Contacts

Answer 18

Identify states that have relevant contacts (whose policies and interests should be considered)
Torts, Ks, Default rules

Question 19

Most Significant Relationship - Application

Relevant Contacts - Torts

Answer 19

1. Where the CONDUCT and INJURY occured
2. Where the parties ARE FROM (domicile, residence, place of incorporation, place of business)
3. Where the parties’ RELATIONSHIP is centered

Question 20

Most Significant Relationship - Application

Relevant Contacts - Ks

Answer 20

1. Where contracting, negotiating and performance occurred
2. Where the subject matter of the K is located
3. Where the parties ARE FROM (domicile, residence, place of incorporation, place of business)

Question 21

Most Significant Relationship - Application

Relevant Contacts - default rules

Answer 21

MSR identifies the state that usually has the MSR w/respect to various issues.
These usually coincide w/ VR rules

Question 22

federal diversity cases

Answer 22

1. In diversity cases, apply the CoL doctrine of the state where the court sits
2. If the case is transferred, apply the CoL doctrine of the transferor court state/district (if it was a proper venue)