Choice of law approaches Flashcards
Mini outline – choice of law approaches
(1) vested rights approach
(2) most significant relationship approach
(3) interest analysis approach
(4) limitations and exceptions
3 kinds of choice of law approaches
(1) first restatement = vested rights approach
(2) second restatement = most significant relationship approach
(3) interest analysis approach
Vested rights approach
The forum must apply the law of the state where the parties’ rights “vested” (i.e., where the act/relationship giving rise to the cause of action occurred/was created)
3 places where rights could vest
Torts = Lex loci delecti → Law of place of wrong or injury
Contracts = Lex loci contractus → Law of place of contracting
Real property = Lex loci situs → Law of the place where the property is located
Most significant relationship approach
The forum must apply the law of the state with the “most significant relationship” to the issue being decided (multi-factor test)
Factors to consider for most significant relationship approach
Needs of interstate and international systems
Relevant policies and relative interests of the forum state and of other interested states
Justified expectations of the parties
Judicial economy
Interest analysis approach
The forum should apply the law of the state most legitimately interested in its outcome (focus on the government’s interest)
Default rule for interest analysis approach
The forum state applies its substantive law, unless the forum state has no legitimate interest in how a particular issue is resolved
3 limitations on choice of law approaches
(1) due process
(2) public policy
(3) penal and revenue laws
Due process limitation on choice of law
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
Public policy limitation on choice of law
Courts will refrain from applying the law of another state when such law offends the strong public policy of the forum state
Penal and revenue law limitation on choice of law
A state court will also refuse to enforce the penal laws or revenue laws of another state
