Conflict of Laws

Question 1

when do you look for conflicts issues?

Answer 1

when there are multiple states

expect them to be combined with other topics like:
family law
federal procedure
torts

TESTING AREAS:
recognition of judgments
choice of law

Question 2

recognition of judgments:

a recognition of judgments question may arise when….

Answer 2

a judgment has been issued by a court

a party is seeking to have that judgment recognized in a second different court

Question 3

recognition of judgments:

what is the name of the place where judgment was originally entered?

Answer 3

rendering jursidiction

Question 4

recognition of judgments:

what is the name of the palce where recognition is being sought?

Answer 4

recognizing jurisdiction

Question 5

why might a party seek recognition of an existing judgment?

Answer 5

Plaintiff: in order to access enfrocement mechanisms in the recognizing state

defendant: to prevent a plaintiff from relitigating a claim or an issue

Question 6

if the rendering jursidiction is a sister state….

Answer 6

ASK:
are the requirements of full faith and credit satisfied?
are there any valid defenses?

recognition is required when the requirements of full faith and credit ARE satisfied and when there ARE NO valid defenses

Answer will almost always be sister state!

Question 7

if the rendering jurisdiction is a foreign country

Answer 7

ask:

is the foreign judgment entitled to comity?

Question 8

sister state judgments:

if the rendering court is a court in a sister state, then the source of the obligation to recognize the judgment is….

Answer 8

constitution

Question 9

sister state judgments:

full faith and credit principles also apply to the recognition of judgments between…

Answer 9

federal courts and state court

Question 10

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP ONE: are the requirements of full faith and credit satisfied?

requirement #1: jurisdiction

Answer 10

RULE: the rendering state must have had jurisdiction over the parties and the subject matter

exception: when the issue of jurisdiction has been fully and fairly litigated then the jurisdictional determination is itself entitled to full faith and credit

Question 11

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP ONE: are the requirements of full faith and credit satisfied?

requirement #2: merits

Answer 11

rule: the judgment entered by the rendering state must have been on the merits

examples:
jursidictional dismissals (lack of jursidcition)
misjoinder
improper venue
failure to state a claim
- sometimes if WITH prejudice = on the merits

Question 12

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP ONE: are the requirements of full faith and credit satisfied?

requirement #3: finality

Answer 12

rule: the judgment entered by the rendering court must be a final judgment

most common application here is a judgment on appeal in the rendering jurisdiction which is considered not a final judgment

Question 13

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP ONE: are the requirements of full faith and credit satisfied?

applicable law

Answer 13

the 3 requirements are evaluated using the law of the rendering state

Question 14

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP TWP: are there any valid defenses to full faith and credit?

valid defenses

valid defenses #1: penal judgments

Answer 14

rule: a penal judgment is not entitled to full faith and credit

Definition: a penal judgment is one that punishes an offense against the public

application: the plaintiff in the suit that led to the judgment was the state UNLESS tax judgment

Question 15

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP TWP: are there any valid defenses to full faith and credit?

valid defenses

valid defenses #2: extrinsic fraud

Answer 15

rule: a judgment obtained by extrinsic fraud is not entitled to full faith and credit
definition: extrinsic fraud is fraud that could not be corrected during the regular course of proceedings leading to the judgment

Question 16

sister state judgment:

if the rendering jurisdiction is a sister state…

STEP TWO: are there any valid defenses to full faith and credit?

attractive but invalid defenses

Answer 16

public policy:
EX: R sues J in state court in NV for not paying their gambling contract. Nevada enters a judgment; J lives in MO; R seeks recognition and enforcement of the judgment in MO. MO does not enforce gambling contracts. J can NOT resist enforcement of judgment

mistakes:
Ex: R sues J in state court in NV for not paying their gambling contract. Nevada applies MO law and enters judgment for R; R seeks recognition and enforcement of judgment; J NOT resist enforcement

Rationale: if mistakes were made, they should have ben challenged through an appeal in the rendering state

Question 17

foreign judgment:

if the rendering jurisdiction is foreign…

Answer 17

then the source of the obligation to recognize the judgment is comity or treaty

RULE: a recognizing court will exercise discretion to decide whether the foreign judgment should be recognized

ASK:
did the foreign court have jurisdiction?
were the procedures in the foreign court fair?

Question 18

choice of law

may arise when 2 conditions are satisfied

Answer 18

lawsuit involves factual connections to multiple states

the multiple states will have different laws leading to different results

Question 19

choice of law

what is the core question + core answer?

Answer 19

question: which state’s law will govern
answer: the governing law is the law selected by the forum court according to its choice of law approach (assuming no applicable constitutional or statutory restrictions)

Question 20

choice of law

diversity cases in federal court

Answer 20

federal court sitting in diversity applies the choice of law approach of the state in which it sits

Question 21

choice of law

transferred diversity case

Answer 21

when a diversity case is transferred within the federal system, the federal court applies the choice of law approach of the transferor court

Question 22

choice of law

what are the restrictions that occasionally limit the forum court’s choice of law?

Answer 22

constitutional:
due process and full faith and credit
RULE:
the constitution imposes a limit only if a state’s law is chosen that has no significant contact with and/or legitimate interest in the litigation

statutory:
RULE:
if the forum state has a statute that directs a choice of law, then the forum court should apply that statute instead of the usual choice of law approach

Question 23

structure:

paragraph 1 format

describe choice of law

Answer 23

the issue presented is which state’s law will govern the outcome of this litigation. the governing law will be selected by the forum court using the (fill in the applicable choice of law approach)

this is the “i understand choice of law” paragraph and is ALWAYS the same!

Question 24

structure:

paragraph 2 format

describe choice of law

Answer 24

here, you will plug in a stock paragraph depending on which of the three tested approaches is being applied.

approach #1: 
vested rights (first restatement) 

approach #2:
interest analysis

approach #3
most significant relationship (second restatement)

Question 25

structure:

paragraph 3 format

apply approach

Answer 25

here, you will consider the facts presented
+ apply the approach
+ provide a conclusion

IMPORTANT: this conclusion should include both the governing law and the approach

Question 26

APPROACH 1

structure: vested rights (first restatement)

paragraph 2 format

Answer 26

under this approach the court will apply that law of that state mandated by the applicable vesting rule. that rule is selected according to the relevant substantive area of law.

Question 27

structure: vested rights (first restatement)

paragraph 3

Answer 27

sentence #1: categorize the substantive area of law

sentence #2: state the applicable vesting rule

sentence #3: apply the vesting rule to determine the governing law

sentence #4: apply the governing law to determine the result

EXAMPLE
this is a torts case. therefore, the applicable vesting rule is the place of injury. here, the injury occurred in Michigan and thus Michigan law applies. under Michigan law, a non-paying passenger cannot recover against the driver, and so the claim is barred.

Question 28

APPROACH 2

structure: INTEREST ANALYSIS

paragraph 2 format

Answer 28

under this approach the court will consider which sates hav a legitimate interesting the outcome of the litigation. the forum will apply its own law as long as it has a legit interest. if the forum state has no legit interest, it will apply the law of another interested state.

Question 29

APPROACH 2

structure: INTEREST ANALYSIS

paragraph 3 format

Answer 29

step 1: discuss which states have legitimate interests

step 2: characterize the type of conflict
false conflict: only one state has a legitimate interest
true conflict: two (or more) states have a legitimate interest

step 3: choose governing law based on type of conflict
false conflict: apply the law of the interested state
true conflict: if the forum is interested, apply forum law

step 4: apply the governing law to determine the result

EXAMPLE:
in this case, only Illinois has a legitimate interest. it is interested in permitting recovery to compensate its injured resident (the plaintiff). Michigan is not interested inn applying its restriction against recovery simply because the accident occurred there. rather, it would be interested in applying its restriction only if the defendant were a Michigan resident. by the defendant in this case is from Illinois, so Michigan is not interested. this case is therefore a false conflict and Illinois law should apply. under Illinois law, the plaintiff may recover.

Question 30

APPROACH 3

structure: MOST SIGNIFICANT RELATIONSHIP (SECOND RESTATEMENT)

paragraph 2 FORMAT

Answer 30

under this approach the court will apply the law of the state which is most significantly related tot he outcome of the litigation. to determine this, the court will consider connecting facts and policy principles.

Question 31

APPROACH 3

structure: MOST SIGNIFICANT RELATIONSHIP (SECOND RESTATEMENT)

paragraph 3 format

Answer 31

step 1: discuss connecting the connecting facts

step 2: discuss the policy principles

step 3: choose governing law based on most significant relationship

step 4: apply the governing law to determine the result

EXAMPLE:
in this case the factual connections are split. the accident occurred in Michigan and the injury was sustained there. but both the plaintiff and the defendant are from Illinois. as a matter of policy, Illinois seems to have the greater interest because the law at issue is a loss distribution rule and both parties share an Illinois domicile. as a result, Illinois appears to have the most significant relationship to the dispute and its law should apply. under Illinois law, the plaintiff may recover.

Question 32

applications to specific substantive areas

introductory note #1

Answer 32

these specific areas will cover vesting rules under the 1st restatement approach and connecting facts/policy principles under the 2nd restatement approach. interest analysis, however, is not sensitive to the substantive area at issue

Question 33

applications to specific substantive areas

introductory note #2

Answer 33

under the 1st restatement, the same vesting rule is generally applied to the entire claim. under the 2nd restatement and interest analysis, however, each issue may be analyzed separately.