Conflict of Laws

Question 1

Recognition of Sister State Judgements

Answer 1

1. Are the requirements of full faith and credit satisfied? (law of RENDERING state rules)

• Rendering state had jurisdiction over parties and subject matter (when the jurisdictional issue has been fully and fairly litigated, the jurisdictional determination is itself entitled to full faith and credit)
• On the merits (ON the merits: consent judgments and default judgments, NOT on the merits: lack of jurisdiction, misjoinder, improper venue, failure to state a claim w/o prejudice).
• Finality

2. Are there any defenses to Full Faith and Credit?

• Penal judgments not entitled to FFC (state is P)
• Extrinsic fraud (couldn’t be corrected during regular course of proceedings)

NOTE: public policy and mistake are NOT valid defenses for recognition

Question 2

Foreign Judgments (Comity)

Answer 2

Recognizing court exercises discretion in determining whether to give FFC.

1. Entitled to FFC? (jurisdiction [recognizing court has more leeway here], finality, on the merits)
2. Were foreign court procedures fair?

Question 3

COL Paragraph 1 (Issue presented)

Answer 3

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 ______ [vested rights, most significant rel. approach, interest analysis] approach.

Question 4

COL Paragraph 2 (describe COL approach)

Answer 4

Vested rights: Under this approach, the court will apply the law of that state mandated by the applicable vesting rule. That rule is elected according to the relevant substantive area of law.

Interest analysis: Under this approach the court will consider which states have a legitimate interest in the outcome of the litigation. The forum court will apply its own law as long as it has a legitimate interest in the litigation. If the forum state has no legitimate interest, it will apply the law of another interested state.

Most significant relationship: Under this approach the court will apply the law of the state which is most significantly related to the outcome of the litigation. To determine this, the court will consider connecting facts and policy principles.

Question 5

Vested Rights Approach (area of substantive law)

Answer 5

1. 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 ______ [vested rights, most significant rel. approach, interest analysis] approach.
2. Under this approach, the court will apply the law of that state mandated by the applicable vesting rule. That rule is elected according to the relevant substantive area of law.
3. Substantive area:
   
   1. Torts: place of injury law applies
   2. Contracts:
      
      1. if about formation, law of place of contracting.
      2. If about performance, apply place of performance.
   3. Property:
      
      1. Real property: law of situs
      2. Personal property:
         
         1. if inter vivos transaction, law of situs at time of transaction
         2. inheritance, law of decedent’s domicile at date of death
   4. Corporations:
      
      1. place of incorporation
   5. Family law:
      
      1. marriage: place of celebration, if marriage can be upheld under that law
      2. divorce: law of forum (at least one of parties has to have jurisdiction there, so interest in applying own laws)
      3. legitimization: at birth= mother’s domicile, after birth concerning paternity= father’s domicile
      4. adoption: forum
   6. Worker’s compensation: forum

Question 6

Most Significant Relationship Approach

Answer 6

1. 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 ______ [vested rights, most significant rel. approach, interest analysis] approach.
2. Most significant relationship: Under this approach the court will apply the law of the state which is most significantly related to the outcome of the litigation. To determine this, the court will consider (1) connecting facts, such as the specific contacts with each jurisdiction, and (2) policy principles, like the needs of interstate or international system, the relevant policies of the forum and other interested jurisdictions, whether the application of a specific law will further its basic policies, and whether application of a particular law will aid certainty, predictability, and uniformity of results.
3. Substantive Areas
   
   1. Torts: look to place of injury, conduct causing injury, residence/business of parties, center of parties relationship
   2. Contracts: Consider place of negotiation, contracting, performance, location of subject matter, domicile, residence, nationality, incorporation, and business of parties
   3. Property:
      
      1. Real property: law of situs
      2. Personal property:
         
         1. if inter vivos transaction, law of situs at time of transaction
         2. inheritance, law of decedent’s domicile at date of death
   4. Corporations:
      
      1. place of incorporation
   5. Family law:
      
      1. marriage: place of celebration, if marriage can be upheld under that law
      2. divorce: law of forum (at least one of parties has to have jurisdiction there, so interest in applying own laws)
      3. legitimization: at birth= mother’s domicile, after birth concerning paternity= father’s domicile
      4. adoption: forum
   6. Worker’s compensation: forum

Question 7

Interest Analysis

Answer 7

1. 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 ______ [vested rights, most significant rel. approach, interest analysis] approach.
2. Under this approach the court will consider which states have a legitimate interest in the outcome of the litigation. The forum court will apply its own law as long as it has a legitimate interest in the litigation. If the forum state has no legitimate interest, it will apply the law of another interested state.
3. NOT SPECIFIC TO SUBSTANTIVE AREA

Question 8

Contacts and COL provisions in contract

Answer 8

• Displaces regular COL analysis
• To be enforced:
  
  • Must be valid
    
    • invalid if law selected has no reasonable relationship to contract
    • invalid if provision included without true mutual consent
  • Must be express

Question 9

Defenses to COL (not recognition!)

Answer 9

1. public policy: court will not apply law against its own fundamental public policy
2. procedural rules: forum court will always apply its OWN procedural rules.
   
   1. Exceptions:
      
      1. borrowing statutes: SOL are typically viewed as procedural when conducting horizontal COL, but if there is a borrowing statute, court will look to forum SOL and foreign SOL and apply the shorter one.
      2. limitations that condition a substantive right: if the normal COL analysis leads to the application of a foreign statute that creates a substantive right, then you apply the entire statute.

Remember: SOL are substantive when performing VCOL, but procedural when doing HCOL.

Question 10

Domicile

Answer 10

An individual with domicile capacity acquires a domicile when two conditions are satisfied:

(1) physical presence in the new domicile, and
(2) an intent to remain permanently (or indefinitely) in the new domicile.

Domicile by operation of law:

(1) Children

• domicile of parents when born
• divorced children domicile of custodial parent

(2) Incompetents

• Mentally incompetent individual assigned domicile of parents
• If becomes incompetent after acquiring domicile by choice, then remains there.

Question 11

COL and Diversity

Answer 11

A federal court sitting in diversity must apply the conflicts of laws rules fo the state in which it sits.