COL Flashcards
How do you recognize a choice of law issue?
It will involve litigation having factual contacts with New York AND one or more other states.
These states will have “conflicting laws” with “conflicting results”.
When there are conflicting laws, which state law governs?
It will be the law selected by the forum court [i.e. New York] using its choice of law approach (subject to constitutional and statutory limitations)
What are the const. ltds on choice of law?
The ONLY time there’s a const ltd under either DUE PROCESS or FF&C is where the law applied isthat of a state NOT having ANY significant contacts with and/or legitimate interest in the litigation
As a practical matter, this almost NEVER happens
What are the statutory ltds on choice of law?
State or federal statutes directing the court as to what law it must or cannot apply
e.g., Borrowing statutes of limitation, federal patent law (can only be in federal courts)
What is the COL rule when a fed ct is sitting in diversity jx?
If the forum is a federal district court sitting in diversity jurisdiction, the court will apply the “conflicts” rules of the state in which it is located.
EX. SDNY has a diversity case with a conflicts issue.
What choice of law approach will it apply? → New York approach.
NOTE: If the case has been transferred from another district, the court will apply the conflicts rules of the transferor state
EX. Same facts as above. However, the case was transferred to the SDNY from the ED of Michigan.
What choice of law approach will be applied by the Southern District Court? → Michigan approach
How does the “interest analysis” appoach work?
This is the NEW NY approach Determine what interest each state has in the “outcome” of the litigation
1) “False Conflict”: Only ONE state has an interest in having its law applied
Result: Apply THAT state’s law
2) “True Conflict”: BOTH states have an interest in having their laws applied.
Result: If the forum has a “legitimate” interest in the “outcome” of the litigation it will apply its own law
The practical effect:you will almost always apply forum (i.e. New York) law in true conflict cases because the forum almost always has a legitimate interest in the outcome of the litigation
EXCEPTION: Where other state does NOT have a DRAM SHOP STATUTE - would not be fair to defendant
What is the COL rule for NY tort cases?
Neumeier Rules for “loss distribution”
1) If theπ has a common domicilew/ ∆→that state’s law governs that suit
2) If the π isdomiciled in adifferent state than ∆→the law of the place of INJURY governs for that suit
UNLESS the state of the place of injury has no real interest in the outcome of the litigation,then if NY has any legitimate interest NY law will be applied
NOTE: a court must consider EACH π vis-a vis EACH ∆ E.g.Two car collision in NY. Both drivers were negligent. Car One was from Canada and both driver and passenger were Canadians. Car Two was from New York and the driver was from New York. The Canadian passenger was seriously injured and brought suit against both drivers in New York.
Suit 1 (w/ Canadian ∆) →Canada Law applies b/c of common domicile
Suit 2 (w/ New York ∆) →NY Law applies b/c they have different domiciles (place of injury law governs)
What is the COL rule for NY K cases?
1) Is there a VALID express choice of law provision → if so it governs
Reasons to INVALIDATE provision
1) No true mutual assent
2) Law selected is that of state having NO REASONABLE RELATIONSHIP to contract
NOTE: if K is worth $250,000 or more→the parties can choose NY law EVEN if the K has no connection to NY (if K is worth ≥$1MM, a ct can’t dismiss for forum non conveniens)
2) If NO valid express choice of law provision→ apply INTEREST APPROACH
i. e. as long as NY has a legitimate interest in the outcome, apply NY law
What is NYs special COL rule for auto insurance Ks?
All issues regarding the rights and duties under an insurance policy are governed by the state where the policy was written REGARDLESS of where the accident occur.
What are 3 defenses against applying the non-forum law?
Defense #1: Other law is against forum’s public policy (almost never works)
Defense #2: Matter is procedural
New York will use its choice of law approaches to determine which substantive law to apply.However, it will ALWAYS apply procedural law
Defense #3: The law is penal in nature
What is the COL rule for NY real property cases?
Situs.
Covers BOTH inter vivos transactions (e.g., land sale contract) and inheritance matters.
What is the COL rule for NY personal property cases?
1) Inter vivos trxn →Situs at the time of the relevant trxn
2) Inheritance→Domicile of decedent at date of death.
NOTE:If an intangible property interest is incorporated in a document (e.g., negotiable instrument, stock certificate)→apply law of situs where the document is physically located
What is the COL rule for NY marriage cases?
If a marriage is valid where it is performed (“celebrated”) it will be recognized as valid everywhere, including New York
EXCEPTION: Where domiciliaries of one state temporarily leave that state and go elsewhere to get married in order to avoid a “prohibitory rule” of their state of domicile, their state of domicile will not recognize the marriage. A “prohibitory rule” is one that expresses a strong public policy (E.g., First cousins cannot marry).
NOTE: NY doesn’t have very many
What is the COL rule for NY divorce cases?
There are no choice of law issues. The forum always applies its own divorce laws. Since at least one of the spouses is domiciled there it has an interest in having its own laws apply.
What is the COL rule for NY legitimacy cases?
Validity of subsequent acts of legitimation are governed by the law of father’s domicile.
The modern trend holds it is valid IF sufficient under the law of EITHER the father’sOR child’s domicile.
