Choice of Law Approaches

Question 1

What is the First Restatement’s “Vested Rights” Approach?

Answer 1

The forum must apply the law of the state where the parties’ rights “vested”
-determined based on where the act or relationship giving rise to the cause of action occured or was created

Question 2

What are approaches within Vested Rights Approach

Answer 2

1. law of the place of wrong or injury
2. law of the place of contracting
3. law of the place where the property is located

Question 3

What is the courts’ process for applying law under the Vested Rights appraoch?

Answer 3

1. court characterizes the cause of action
2. application of the appropriate choice-of law rule (e.g. place of contracting, injury, etc.)

Question 4

What is the Second Restatement’s “Most Significant Relationship” Approach?

Answer 4

The forum must apply the law of the state with the most significant relationship to the issue being decided

Question 5

What are the factors that a court takes into account when making a choice-of-law determination under the Most Significant Relationship Approach

Answer 5

In general, for any particular issue, a court’s choice-of-law determination is made by considering multiple factors, including:
1. needs of interstate and international systems
2. relevant policies and relative interests of the forum state and of other interested states
3. justified expectations of the parties
4. judicial economy

Question 6

What is the “Interest Analysis” Approach?

Answer 6

The forum should apply the law of the state most legitimately interested in its outcome

Question 7

What is the default rule under the Interest Analysis Approach

Answer 7

The forum state applies its substantive law, unless the forum state has no legitimate interest in how a particular issue is resolved

Question 8

What are limitations on choice of law approaches?

Answer 8

1. Due process
2. Public policy
3. Penal and Revenue Laws

Question 9

What are limitations imposed by Due Process upon choice of law approaches?

Answer 9

1. The choice of law determination must be consistent with the norms of fairness embodied in the 14th A DPC
2. The law to be applied must be from a state whose connections with the case are not so tenuous as to render its application unpredictable or arbitrary

Question 10

What are public policy limitations regarding choice of law approaches

Answer 10

Courts will refrain from applying the law of another state when such law offends the strong pbulic policy of the forum state

Question 11

How to penal and revenue laws limit choice of law approaches

Answer 11

A state court will refuse to enforce the penal laws or revenue laws of another state