Conflict of Laws

Question 1

general rule
-rendering state definition
-recognizing state definition

Answer 1

rendering State = State handing down judgment
recognized state = state called upon to recognize and enforce the judgment
-judgments either form Sister State or Foreign County

Question 2

Sister State judgments

Answer 2

is the judgment entitled to Full Faith & Credit (FF&C)?
*if NO -> deny recognition (2 step analysis)

Question 3

Step 1: are the 3 FF&C requirements below satisfied?
(1); (2); (3)

Answer 3

(1) rendering state must have had valid jurisdiction over both parties and subject matter
–NOTE: Jurisdiction can be attacked ONCE - either in rendering OR recognizing state court proceeding

Question 4

Are the requirements satisfied (2)

Answer 4

(2) Must be on the merits (includes default & consent judgment)

Question 5

Are the requirements satisfied (3)

Answer 5

(3) Must be final. If modifiable (eg. order for future alimony/child support), no FF&C, but usually enforced under comity

Question 6

Step 2: Any Good Defenses to FF&C?

Answer 6

GOOD Defenses:
(1) Judgment is penal (one which punishes “an offense against the public”). P is the state, not a private person
(2) Judgment procured by extrinsic fraud (i.e. fraud that couldn’t be dealt with during earlier trial, such as bribing judge)

Question 7

Step 2: What are BAD Defenses to FF&C?

Answer 7

BAD Defenses:
(1) Tax Judgment
(2) Action based on cause of action that violates public policy of recognizing state (irrelevant)
(3) Mistakes of fact or law were made (should have been handled or appealed within rendering court system)
(4) Inconsistent judgments (later judgment enforceable even if inconsistent with earlier judgment)
*federal and state courts: federal and state courts are required to recognize judgments from the other

Question 8

Foreign Country Judgments:
-general
-fairness standards: (1); (2)

Answer 8

-generally recognized (given Comity) on same grounds as sister state judgments. BUT, recognizing court determines whether State’s due process/”fairness” standards are satisfied in terms of:
(1) Whether jurisdiction was proper (min. contacts analysis); and
(2) Whether “fair” procedures used during the earlier foreign litigation

Question 9

Special Issues of Family Law Judgments:
-general
(1) divorce decree
(2) alimony & child support awards
(3) child custody awards

Answer 9

-recognition and enforcement of family law judgments involves consideration of jurisdiction (SMJ and Personal Jurisdiction). 3 types of judgments:
(1) divorce decree: requirements: proper subject matter jurisdiction and at least 1 of the 2 spouses domiciled where divorce granted
(2) Alimony & Child Support Awards: requirements: Court granting must have personal jurisdiction over spouse whose property rights are affected
(3) child custody awards: only child’s home state has jurisdiction

Question 10

Domicile:
-domicile by choice <-
-domicile by operation of law

Answer 10

domicile by choice: acquired by someone with “domicile capacity” (ie. the ability to fend for oneself). 2 Requirements:
(1) physical presence in a place (even for a short time, if intent is clear); and
(2) Intent to be domiciled in that place (regardless of motive)
*Note: if multiple residences, the principal one is domicile
*Note: One’s domicile retained until 2 part test is perfected elsewhere

Question 11

Domicile: Domicile by Operation of Law

Answer 11

A domicile assigned to one who lacks “domicile capacity”:
(1) Infants get domicile of parents. If parents divorced/separated, get domicile of the custodial parent
(2) Mentally incompetent person gets domicile of parents. If became incompetent after selecting a domicile by choice, then they retain that domicile.

Question 12

Choice of Law: Generally:
-If litigation involves multiple states that have “conflicting laws” with “conflicting results”, which state’s law governs?

Answer 12

The law is selected by a forum court using its choice of law approach (subject to constitutional and statutory limitations)

Question 13

Constitutional and Statutory limitations

Answer 13

(1) Constitutional Limitations: State must have some significant contact(s) with and/or legit interest in litigation. (Almost always satisfied). *No weighing of states’ interests is needed.

Question 14

Constitutional and Statutory limitations

Answer 14

(2) Statutory Limitations: State or fed statutes direct the court what it must or cant apply (eg. borrowing SOL, fed patent law, etc.)

Question 15

Erie Doctrine

Answer 15

in Fed diversity cases, the court must apply substantive law of the state where the court is located, including conflicts rules. If transferred from other district, the Court applies the rules of the transferor state.

Question 16

Depecage

Answer 16

The process of applying the law of different states to decide different issues.
-The Court assumes a case is to be governed by the law of the forum state unless a party timely invokes the law of a foreign state and establishes that foreign law should apply.

Question 17

Renvoi

Answer 17

-Provides that the forum may apply the state’s internal law and its conflicts rule if it doesn’t like the foreign law to be applied
generally rejected, but may be applied in cases concerning
(1) the validity of a marriage; (2) the status of a parent’s kinship with a child; and (3) dispositions of interests in land.

Question 18

proof of foreign law

Answer 18

-traditional: law of any other state is treated as fact, not law. Law would need to be pleaded and proved.
-modern: Most states take judicial notice of sister state and Federal law.
*Treatment of foreign law is divided among states, but generally a matter for the Court not the jury.

Question 19

Choice of Law Approaches:
-Traditional Vested Rights Approach

Answer 19

For each substantive law area, there are “vesting” rules re: where Plaintiff’s rights vest. “Fact based” rules that determine which state’s law will govern.

Question 20

Traditional Vested Rights Approach:
-Where do rights vest?

Answer 20

(i) Torts: the place of injury (not the place of negligence);
(ii) Contracts: the place of contract formation;
(iii) Real Property: situs of the land

Question 21

Most Significant Relationship Approach

Answer 21

The Court applies the law of the state most significantly related to the outcome of litigation. The Court considers:
(a) the connecting facts in the case; and
(b) certain policy-oriented principles.
(a very fact intensive approach)

Question 22

Interest Analysis (Governmental Interest) Approach

Answer 22

-general rule: the Court applies its own law so long as it has legit interest in the outcome of litigation.
-But, if a true conflict between different state laws, the Court seeks to ID which state has the greatest interest in application of its law.
*Note: the Interest Analysis Approach does not vary depending on the area of law.

Question 23

Possible Outcomes of the Interest Analysis:
(1)
(2)
(3)
(4)

Answer 23

(1) False Conflict: If only one state has interest in applying its laws, then apply that state’s law.
(2) True Conflict: Both states have an interest in applying their laws. If the forum state has a legit interest in the outcome of litigation, it will apply its own law. *Note: Almost always apply the forum law in true conflict cases bc the forum almost always has a legit interest in the outcome.
(3) Disinterested Forum: The forum state has no legit interest, but 2 or more other states do. The forum state may either: (i) apply the law it deems “better”; or (ii) apply the law closest to the law of the forum
(4) No state has a Legit Interest: Apply the law of the forum state

Question 24

The Better Rule Approach (increasing acceptance of this approach)

Answer 24

Courts apply the best substantive rule. Courts will consider:
(i) predictability; (ii) maintenance of interstate and international order; (iii) simplicity of judicial task; (iv) the government’s interest; and (v) the application of a better rule of law.

Question 25

Choice of Law Rules in Specific Areas:
-Torts:
-rules regulating conduct

Answer 25

-rules regulating conduct: Court notmally apply the law of the place of the injury

Question 26

Torts:
-loss distribution rules

Answer 26

allocate the losses resulting from tortous condict. The majority of tort rules. Include wrongful death; med mal awards; guest statutes; vicarious liability, etc.

Question 27

Torts: general approach:
(1)
(2)
(3)

Answer 27

(1) If P and D have the same domicile, apply that state’s law.
(2) If P and D are from different states, then if the law of the place where the accident occurred helps its citizens, then apply that state’s law.
(3) When P and D are from different states, and the law of the place where the accident occurred does NOT help its citizens, still apply the law of the place of injury UNKESS the other state has a greater interest in the outcome.

Question 28

Torts:
-vested rights
-Most significant relationship

Answer 28

-vested rights: the place of the injury
-most significant relationship: Courts consider:
(i) the place of the injury; (ii) the place of conduct causing the injury; (iii) the place of the home state; (iv) the place where relationship (if any) between the parties centered.

Question 29

Choice of Law Rules in Specific Areas: Contracts
-threshold issue

Answer 29

-threshold issue: If there is a valid, express Choice of Law provision in the contract, then it governs.
-BUT, may if invalid IF: (1) The law selected is of a state with no reasonable relationship with the contract; or (2) No true mutual assent (eg. fraud or misrepresentation)

Question 30

Contracts:
*If there is no valid, express provision: then apply the basic choice of law rules: vested rights approach

Answer 30

-vested rights approach:
—Contract formation issues: place of execution;
—Contract performance issues: place of performance

Question 31

Contracts:
*If there is no valid, express provision: then apply the basic choice of law rules: Most significant relationship approach

Answer 31

Courts consider: (i) the place of negotiation; (ii) the place of execution; (iii) the place(s) of performance; (iv) the place of the home state; (v) the location of the subject matter.

Question 32

Choice of Law Rules in Specific Areas: Real Property
-both approaches

Answer 32

-both approaches: law of situs. Pertains inter vivos and inheritance matters

Question 33

Choice of Law Rules in Specific Areas: Personal Property
-both approaches:
—inter vivos transactions
—inheritance matters

Answer 33

-inter vivos transactions: situs at the time of the transaction
-inheritance matters: domicile of decedent at the time of death. *Note: if intengible property interest incorporated in a doc (eg. a stock certificate), situs is where the doc is located.

Question 34

Choice of Law Rules in Specific Areas: Corporations

Answer 34

-apply the law of the state where incorporated

Question 35

Choice of Law Rules in Specific Areas: Marriage
-general rule

Answer 35

-general rule: If the marriage was valid where performed, then it is valid everywhere. EXCEPT Where domiciliaries of one state temp leave and marry elsewhere to avoid a “prohibitory rule” of domicile state.

Question 36

Choice of Law Rules in Specific Areas: Divorce

Answer 36

-the forum always applies its own divorce laws

Question 37

Choice of Law Rules in Specific Areas: Legitimacy

Answer 37

(1) Child born out of wedlock is illegitimate. If the mother is married, then the child is presumed legitimate.
(2) Validity of subsequent acts of legitimation are governed by the law of the father’s domicile.
*Modern: Valid if sufficient under the law of either the father’s or the child’s domicile

Question 38

Defenses to Choice of Law: 3 Potential Defenses to Proposed Choice of Law: (1); (2); (3)

Answer 38

(1) Against public policy: Must be extremely offensive (rarely accepted defense.
(2) The law is penal: only applies to offenses against the public.
(3) The law is procedural, NOT substantive: If procedural, then the forum state will apply its own law.
—procedural laws include: burden of proof laws; statutes of limitation; ability to being counterclaims, etc.

Question 39

(3) The law is procedural not substantive: SOL Exceptions:

Answer 39

-Although SOL generally procedural, 2 exceptions:
(i) borrowing statutes: the forum directed to apply a shorter SOL.
(ii) statute conditions Substantive Right: If you apply the other state’s statue which creates a substantive right, then you should apply the entire statute, including procedural provisions.
*Modern Trend: SOL is treated as substantive matter

Question 40

Use of State Law in Federal Court

Answer 40

If in Federal Court bc of diversity, must use States’ Choice of Law rules

Question 41

Federal Preemption: 4 circumstances of federal preemption of state law: (1); (2); (3); (4)

Answer 41

4 circumstances of federal preemption of state law:
(1) Express: Congress specifically prohibits states from enacting a law.
(2) Actual Conflict: State law is in direct conflict with the Federal law.
(3) Implied Conflict: Federal law itself established the standard of Federal preemption.
(4) Field Preemption: Conflict with Federal Treaty, foreign affairs, or tries to occupy an area where Congress left no room.

Question 42

Misc.:
-Default Judgments

Answer 42

considered “on the merits” for purpose of FF&C, BUT don’t give rise to collateral estoppel bc no issues have yet been litigated.

Question 43

Dram Shop Act

Answer 43

Statutory liability on vendor of liquor if a drunk customer injures another.
-general rule: if the liquor was served in a state with no DSA, and injury occured in a state with a DSA, then the Court will generally NOT impose liability since D would be exempt.

Question 44

Springing Power of Attorny:

Answer 44

The instrument becomes effective only on the happening of a specified future event (eg. the principal’s incapacity).
-for a SPA to become effective, power-holder must declare in writing that the event has occurred.