Choice of Law

Question 1

What choice of law approach does Pennsylvania use?

Answer 1

A hybrid approach between the most significant relationship (Second Restatement) and the government interest approaches.

Question 2

What factors are considered for the most significant relationship approach?

Answer 2

1. The needs of the interstate or international system
   
   1. Usually not really a factor
2. The relevant policies of the forum
3. The relevant policies of other interested states
4. The parties’ expectations
   
   1. Especially for contract cases
5. Policies underlying the substantive areas of law
   
   1. Tort: Compensate victim; punish/deter tortfeasor
   2. Contracts: better to enforce contracts
6. Certainty, predictability, and uniformity
7. Ease of future application

Torts add:

1. Where the injury occurred (usually controls)
2. Where the conduct causing the injury occurred
3. Where the parties are domiciled, reside, or are incorporated
4. Where the relationship between the parties is centered.

Contracts

1. Place of contracting, negotiation, or performance
2. Where the subject-matter of the contract is located
3. Where the parties are domiciled, reside, or incorporated

Question 3

What is the government interest approach?

Answer 3

Determine whether there is a true or false conflict, or no interests at all.

True: Most significant relationship test

False: State with interest

No interests: forum state.

Question 4

What are the steps for PA’s conflict of laws analysis?

Answer 4

1. Determine what type of conflict exists.
2. If true conflict, determine how to classify the claim.
3. Apply the most significant relationship factors.

Question 5

When will a choice of law clause be enforceable?

Answer 5

As long as it

1. is not contrary to public policy AND
2. has some reasonable basis AND
3. was not agreed to due to fraud or mistake

Question 6

What defaults exist, subject to the most significant relationship test?

Answer 6

1. Land contracts: law of where the land is controls
2. Personal property: law of the place of delivery
3. Life insurance: law of the place where the insured is domiciled
4. Casualty insurance: law of the location of the insured risk
5. Loans: law of the place where repayment is required
6. Suretyship contracts: law governing the principle obligation
7. Transportation: law of the place of departure
8. Trusts: law of the state where the trust is administered
9. Inheritence of real property: law of the situs
10. Inheritence of personal property: law of the deceased’s domicile at the time of death