Choice of Law Approach Flashcards
vested rights (first restatement)
apply the law of where the claim arose
“under this approach, the court will apply the law of that state-mandated by the applicable vesting rule. That rule is selected according to the relevant substantive area of law.”
interest analysis
“under this approach, the court will consider which states have a legitimate interest in the outcome of the litigation. The forum court will apply its own law as long as it has a legitimate interest. if the forum state has no legitimate interest, it will apply the law of another interested state.”
characterize type of conflict
false conflict: only one state has a legitimate interest
True conflict: two or more states have a legitimate interest
governing law based on type of conflict
false conflict: apply the law of the interested state
true conflict: if the forum is interested, apply the forum law
most significant relationship (second restatement)
“under this approach the court will apply the law of the state which is most significantly related to the outcome of the litigation. To determine this, the court will consider connecting facts and policy principles.”
Torts (first restatement)
governing law is where the injury occured
Torts (second restatement)
Factual connections (1) place of injury, (2) place of conduct causing injury, (3) where parties are at home, (4) where the relationship is centered
Policy principles: (1) relevant policies of the forum state; (2) relevant policies of other connected states
Exception for torts not being where injury occured
(1) rule at issue is loss distribution
(2) parties share a common domicile
loss distribution applies: (examples)
loss limitations (damage caps)
vicarious liability rules
rules eliminating liability (immunity)
Contracts with choice of law provision
a choice of law provision iwll be enforced if it is valid and express
When will choice of law provision be invalid
(1) the law selected has no reasonable relationship to the parties or the transaction
(2) provision is contrary to the fundamental policy of a state with a materially greater interest than the chosen state in the determination of the particular issue
Contracts vesting rule (first restate)- if case about the formation
apply the law of the place of contracting
contracts vesting rule (first restate) - if the case is about performance
apply the law of the place of performance
second restatement Contracts
factual connections (1) place of contracting, negotiations, perofmrance, parties “at home”
policy principles (1) relevant policies of the forum state, (2) relevant policies of other connected states, (3) reasonable expectations of the parties (to make contract enforceable)
Immovable property
apply law of the situs (where it is located)