Choice of Law Theories (Analytical Approaches)

Question 1

Vested Rights Approach (1st Restatement)

Answer 1

Territorial & Traditional Approach

Where the place where last event occurred. Was Necessary. Where on the map.

3 Steps:

(1) Characterize the Area of the Law
- What kind of substantive claim (i.e. tort, K, etc.?)
- Is issue substantive or procedural?
(2) Find Applicable Choice of Law Rule
- Torts = Law of the place WHERE the WRONG occurred
- K = Law of place where the K WAS MADE (or was to be performed)
- Procedure = Law of the Forum
(3) Apply the Rule to ID the State whose Law governs the issue

Question 2

Interest Analysis (Government Interest) Approach

Answer 2

Makes choice-of-law determination on each ISSUE

Analyzes the POLICIES behind conflicting laws of the relevant states & the extent to which those policies and interests would be advanced by the application of the respective states’ laws to the case at hand.

• ID false conflicts. Apply the law of the only interested state.
• Resolve true conflicts. Apply the law of forum

Question 3

Most Significant Relationship Approach (2nd Restatement)

Answer 3

Apply the law of the state which has the “most significant relationship” to the occurrence of transaction and the parties.

Apply controlling principles = Mostly relevant policies/Interest Analysis