Conflict of Laws

Question 1

Recognition of Judgments Question May Arise When 2 Conditions are Satisfied

Answer 1

1. A judgment has been issued by a court (rendering jurisdiction)
2. A party is seeking to have that judgment recognized in a second, different court (recognizing jurisdiction)

Will the recognizing court recognize the judgment issued by the rendering court?

Question 2

Why might parties seek recognition of existing judgment?

Answer 2

Plaintiff wants to access enforcement mechanisms

Defendant wants to prevent plaintiff from relitigating a claim or issue

Question 3

Conflict of Laws Analysis

I. Is the rendering jurisdiction a sister state or a foreign country

II. Sister State

Answer 3

1. Are requirements of full faith and credit satisfied?
2. Are there valid defenses?

Recognition required if:

1. Yes
2. No

Question 4

Conflict of Laws Analysis

I. Is the rendering jurisdiction a sister state or a foreign country

II. Foreign Country

Answer 4

Is the foreign judgment entitled comity?

Question 5

3 Requirements of Full Faith and Credit

Answer 5

1. Jurisdiction: rendering court must have personal jurisdiction and subject matter jurisdiction
   EXCEPTION: when issue of jurisdiction has been fully and fairly litigated, then the jurisdictional determination itself is entitled to full faith and credit.
   Can be voluntarily waived.
2. Merits: judgment entered by rendering state must have been on the merits.
   On the merits:
   -default judgment (treats all factual contentions as considered)
   -Consent judgments entered after settlement
   NOT on the merits:
   -time-bar
   -misjoinder
   -improper venue
   -failure to state a claim (12(b)(6)) unless “with prejudice”
3. Finality: rule entered by the rendering court must be a final judgment.
   NOT final:
   -judgment on appeal in rendering district
   -tricky hypo: modifiable order (i.e. alimony payments) final as to past payments but not final as to future payments

Applicable law: all 3 requirements are evaluated using the law of the RENDERING STATE

Question 6

2 Valid Defenses to Full Faith and Credit

Answer 6

1. Penal Judgments
   Rule: a penal judgment is NOT entitled to full faith and credit
   Definition: a penal judgement is one that punishes an offense against the public (state is usually the plaintiff)
   EXCEPTION: final tax judgement
   (punitive is not penal)
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

Question 7

Attractive but Invalid Defenses to Full Faith and Credit

Answer 7

• Public Policy

- Mistakes (if mistakes were made, they should have been challenged through appeal in the rendering state)

Question 8

Foreign Judgments: Comity

Answer 8

If the rendering court is a foreign country, then the source of obligation to recognize the judgment is comity or treaty
Rule: under principles of comity, a recognizing court will exercise discretion to decide whether the foreign judgment should be recognized. Considerations include finality, on the merits, PLUS did the foreign court have jurisdiction? Were procedures in the foreign court fair?

Question 9

Choice of Law Question Arises Where (2 Conditions)

Answer 9

(1) Lawsuit involves factual connections with multiple states
(2) Multiple states will have different laws leading to different results

Question 10

Which State’s Law Will Govern: Core Answer

Answer 10

Governing law is the law selected by the forum court according to its choice of law approach (assuming no constitutional or statutory restrictions)

Question 11

Which State’s Law Will Govern: 2 Exceptions

Answer 11

(1) Diversity cases in fed court: apply the choice of law approach of the state in which it sits
(2) Transferred diversity cases: fed court applies the choice of law approach of the transferor court.

Question 12

Which State’s Law Will Govern: 2 Restrictions

Answer 12

Occasionally limit forum court

(1) Constitution’s Due Process and Full Faith and Credit ONLY if state chosen with no significant contact/legitimate interest
(2) Statutory, and forum state has no statute

Question 13

Structure of Choice of Law Answer

Answer 13

Paragraph 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 ____ approach.

Paragraph 2: Describe Choice of Law Approach
Approach 1: Vested Rights (1st Restatement)
Approach 2: Interest Analysis
Approach 3: Most Significant Relationship (2nd Restatement)

Paragraph 3: Apply Choice of Law Approach

• Consider facts, apply approach, provide conclusion
• Conclusion: governing law and result

Question 14

Approach 1: Vested Rights (First Restatement)

Answer 14

“Under this approach, the court will apply the law of that state mandated by the applicable vesting rule. That rule is selected according to the relevant substantive area of law.”

Sentence #1: Categorize the substantive area of law
Sentence #2: State the vesting rule
Sentence #3: Apply the vesting rule to determine governing law
Sentence #4: Apply the governing law to determine the result

Question 15

Approach 2: Interest Analysis

Answer 15

“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. If the forum state has no legitimate interest, it will apply the law of another interested state.”

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: 2+ 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 forum interested, apply forum state law
Step 4: Apply governing law to determine result

Question 16

Approach 3: Most Significant Relationship (2nd Restatement)

Answer 16

“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 lower court will consider connecting facts [where] and policy principles [why].

Step 1: Discuss connecting facts
Step 2: Discuss policy principles
Step 3: Choose governing law based on most significant relationship
Step 4: Apply the governing law to determine result

Question 17

Torts

Answer 17

FIRST RESTATEMENT VESTING RULE: governing law is the law where the injury occurred

SECOND RESTATEMENT
Factual connections
1. place of injury
2. place of conduct causing injury
3. Place where parties at home
4. Place where relationship 
Policy principles
1. relevant policies of forum
2. relevant policies of other connected states
Typically, governing law= law of place of injury

Exceptions under 2 Modern Approaches
Condition 1: Rule = loss distribution/immunity
Condition 2: parties share a common domicile
Apply law of common domicile

Question 18

Contracts Choice of Law Provision

Answer 18

Rule: a choice of law provision will be enforced if it is valid and express

Impact: if the choice of law provision is enforced, the provision displaces the choice of law analysis that the court would otherwise perform. Conversely, if the choice of law provision is rejected, the court should then conduct a choice of law analysis. If in doubt– invalid

Applications:

1) Law selected has no reasonable relationship to the contract
2) Provision was included without true mutual assent

Question 19

Contracts: Choice of Law Analysis

Answer 19

FIRST RESTATEMENT VESTING RULES
Rule 1: if the case is about formation (capacity, contractual formalities, consideration), apply the law of the place of execution
Rule 2: if the case is about performance (time/place/manner/excuses for non-performance), apply the law of the place of performance

SECOND RESTATEMENT CONSIDERATIONS
Factual considerations: place of contracting/negotiation/performance/parties at home
Policy principles:
1. Relevant policies of the forum state
2. Relevant policies of other connected states
3. Reasonable expectations of the parties

Question 20

Property

Answer 20

Immovable (Real) Property
Apply the law of the situs

Movable (Personal) Property
Rule #1: if the case involves an INTER VIVOS transaction, apply the law of the situs at the time of the transaction
Rule #2: if the case involves a matter relating to inheritance, apply the law of the decedent’s domicile at the date of death.

Question 21

Family Law: Marriage

Answer 21

Rule: if a marriage is valid where performed, it will be recognized as valid everywhere.

Exception: when domiciliaries of one state temporarily relocate to another state to perform a marriage that violates a prohibitory rule in their home state, the state of domicile will not recognize the marriage.

Rationale: a prohibitory rule is a rule that expresses a strong public policy regarding marriage (as opposed to directory rules, which are administrative in nature).

Question 22

Family Law: Divorce

Answer 22

Rule: the forum will apply its own divorce laws

Rationale: to acquire jurisdiction, at least one of the parties must be domiciled in the state. Therefore, the state has an interest in applying its own laws.

Question 23

Family Law: Legitimacy

Answer 23

Rule # 1: legitimacy of a child is governed by the law of the mother’s domicile at the time of the child’s birth

Rule #2: the validity of subsequent acts of legitimation are governed by the laws of the father’s domicile

Question 24

Defenses to Choice of Law: Public Policy

Answer 24

Rule: a forum court will not apply a law that is against its own fundamental public policy. In both Restatements, most applicable to First Restatement (vested rights)

Caveat: does not apply to recognition of judgments!

Question 25

Defenses to Choice of Law: Procedural Rules

Answer 25

Rule: regardless of the outcome of the choice of law analysis, forum court will always apply its own procedural rules.

Most frequently tested: statutes of limitations.
General rule: historically, statutes of limitations were regarded as procedural.
Exception #1: Borrowing Statutes. Look at its own statute and foreign limitations period (where it governs under normal choice of law analysis) and apply shorter period
Exception #2: Limitations conditioning a substantive right– apply entire statute (e.g. wrongful death)

Question 26

Domicile by Choice

Answer 26

Rule: an individual with domicile capacity acquires a domicile when 2 conditions are satisfied:

(1) physical presence
(2) intent to remain indefinitely/permanently

Even fleeting presence is sufficient if combined with clear intent.

Intent matters, but motive does not.

You keep your old domicile until a new domicile is established.

Question 27

Domicile by Operation of Law

Answer 27

An individual who lacks domicile capacity is assigned one by law.

Question 28

Domicile by Operation of Law: Children

Answer 28

Rule 1: Newborns are assigned the domicile of their parents

Rule 2: Divorce– domicile of primary custodial parent until they reach the age of domicile capacity

Question 29

Domicile by Operation of Law: Mental Incompetents

Answer 29

Rule 1: Assigned domicile of parents

Rule 2: If becomes incompetent after acquiring domicile by choice, s/he retains the chosen domicile