Conflict of Laws Flashcards
when do you look for conflicts issues?
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
recognition of judgments:
a recognition of judgments question may arise when….
a judgment has been issued by a court
a party is seeking to have that judgment recognized in a second different court
recognition of judgments:
what is the name of the place where judgment was originally entered?
rendering jursidiction
recognition of judgments:
what is the name of the palce where recognition is being sought?
recognizing jurisdiction
why might a party seek recognition of an existing judgment?
Plaintiff: in order to access enfrocement mechanisms in the recognizing state
defendant: to prevent a plaintiff from relitigating a claim or an issue
if the rendering jursidiction is a sister state….
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!
if the rendering jurisdiction is a foreign country
ask:
is the foreign judgment entitled to comity?
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….
constitution
sister state judgments:
full faith and credit principles also apply to the recognition of judgments between…
federal courts and state court
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
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
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
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
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
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
sister state judgment:
if the rendering jurisdiction is a sister state…
STEP ONE: are the requirements of full faith and credit satisfied?
applicable law
the 3 requirements are evaluated using the law of the rendering state
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
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
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
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
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
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
foreign judgment:
if the rendering jurisdiction is foreign…
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?
choice of law
may arise when 2 conditions are satisfied
lawsuit involves factual connections to multiple states
the multiple states will have different laws leading to different results
choice of law
what is the core question + core answer?
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)
choice of law
diversity cases in federal court
federal court sitting in diversity applies the choice of law approach of the state in which it sits
choice of law
transferred diversity case
when a diversity case is transferred within the federal system, the federal court applies the choice of law approach of the transferor court
choice of law
what are the restrictions that occasionally limit the forum court’s choice of law?
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
structure:
paragraph 1 format
describe choice of law
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!
structure:
paragraph 2 format
describe choice of law
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)
structure:
paragraph 3 format
apply approach
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
APPROACH 1
structure: vested rights (first restatement)
paragraph 2 format
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.
structure: vested rights (first restatement)
paragraph 3
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.
APPROACH 2
structure: INTEREST ANALYSIS
paragraph 2 format
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.
APPROACH 2
structure: INTEREST ANALYSIS
paragraph 3 format
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.
APPROACH 3
structure: MOST SIGNIFICANT RELATIONSHIP (SECOND RESTATEMENT)
paragraph 2 FORMAT
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.
APPROACH 3
structure: MOST SIGNIFICANT RELATIONSHIP (SECOND RESTATEMENT)
paragraph 3 format
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.
applications to specific substantive areas
introductory note #1
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
applications to specific substantive areas
introductory note #2
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.
