Conflict of Laws

Question 1

Traditional Vested Rights Approach (1st Restatement)

Answer 1

Under this approach, apply the law of the state where transaction or event occurred.
− Examples→place of wrong/injury, where contract was formed/performed, location of real property.

Question 2

Most Significant Relationship Approach (Rest. 2nd)

Answer 2

Under this approach, apply the law of the state having the most significant relationship to the transaction and the parties.

Question 3

Interest Analysis Approach

Answer 3

Under this approach, the court weighs the interests of the states involved.
− The state with the greater interest will have its law applied.

Question 4

3-Step Process to Determine the Greater Interest:

Answer 4

1) If one state has an interest to apply its policy, and the other state doesn’t, the court should apply the law of the interested state.
2) If there is an apparent conflict between the interests of two states, the court should look for a more moderate/restrained interpretation to avoid the conflict.
3) If there is still a conflict, the law of the forum state applies.

*This approach DOES NOT change depending on the type of action involved.

Question 5

Torts Traditional Vested Rights Approach

Answer 5

→apply the state law where the wrong or injury occurred

(Lexi loci delicti)

Question 6

Torts Most Significant Relationship Approach

Answer 6

→apply the law of the state that has the most significant relationship to occurrence and the parties.
− A court must consider→(i) where the injury occurred, (ii) where the conduct causing the injury occurred, (iii) domicile/residence of the parties, and (iv) where the relationship of the parties is centered.
*If unclear→apply local law.

Question 7

Torts Interest Analysis Approach

Answer 7

→apply the law of the state with the greater interest.

Question 8

Contracts with a Choice of Law Provision
− Contract Construction

Answer 8

→the parties are free to choose for matters of contract construction

Question 9

Contracts with a Choice of Law Provision
− Contract Validity

Answer 9

→the parties may choose the applicable law ONLY IF:

(1) the state has some connection;
(2) the contract was not entered into under fraud, duress, or mistake; AND
(3) the choice of law isn’t contrary to a substantial policy interest of another state that has more of a significant interest.

Question 10

Contracts No Valid Choice of Law Provision
− Traditional Vested Rights Approach

Answer 10

→apply the law of the state where contract was formed or is to be performed.

Question 11

Contracts No Valid Choice of Law Provision
− Most Significant Relationship Approach

Answer 11

→apply the law of the state that has the most significant relationship.

Factors – court must consider the place of contracting, place of negotiation & performance, location of the subject matter of the contract, and the parties’ domicile, residence, nationality, and place of business.

Question 12

Contracts No Valid Choice of Law Provision
− Interest Analysis Approach

Answer 12

→apply the law of the state with the greater interest.

Question 13

Premarital Agreements

Answer 13

To determine enforceability, apply the law:
a) Where the agreement was executed; OR
b) That has the most significant relationship to transaction and the parties.

Question 14

Premarital Agreements
*Most states apply the Most Significant Relationship Approach, where courts will analyze where:

Answer 14

i) agreement was signed;
ii) parties were married;
iii) parties lived while married;
iv) parties are currently living;
v) assets are located; and
vi) any children were born.

Question 15

Real Property

Answer 15

Apply the state law where the real property at issue is located (the situs rule) for cases involving the title/sale of real property.
− Rest. 2nd Approach→it’s presumed that the situs state has the most significant relationship.
− If the land is merely incidental to a contract (i.e. brokerage contract, mortgage agreement), then apply the choice of law rules for contracts.

Question 16

Inheritance

Answer 16

Real property→apply the state law of where the property is located (the situs rule).

Personal Property→apply state law of decedent’s domicile state.
Domicile→determined by a person’s (1) residence (physical presence in the state), AND (2) subjective intent to make the state their permanent home.

Question 17

Law Applied by Federal Courts

Answer 17

Erie Doctrine – Applies when a federal case is brought under diversity of citizenship jurisdiction. Federal courts will apply:
− Federal procedural law, and
− Substantive law of the forum state in which it sits.

Question 18

Substance vs. Procedure:

Answer 18

Procedural Law = civil procedure rules, statute of limitations (except in limited circumstances), burden of proof, and rebuttable presumptions.

Substantive Law = choice of law rules, statute of frauds, irrebuttable presumptions, statute of limitations that condition a substantive right or have a borrowing statute, preclusion law.

Question 19

When Substantive Federal Law Applies

Answer 19

– Federal law will apply for matters governed by the U.S. Constitution, laws passed by Congress, and valid federal law that preempts state law under the Supremacy Clause.

Question 20

Law Applied by State Courts

Answer 20

− Procedural Issues → A state court will apply the law of the forum state for procedural issues.

− Substantive Issues→For substantive issues, the choice of law rules of the forum state determines which state’s law is applied.

*See rule above for what constitutes substantive law vs. procedural law.

Question 21

State, Federal, & Foreign Court Judgments Full Faith & Credit

Answer 21

A judgment is entitled to full faith a credit when the:
1) Rendering court had jurisdiction (PJ + SMJ);
2) Case was decided on the merits; AND
3) Judgment was final.

Question 22

State Courts Full Faith & Credit

Answer 22

− Required to give full faith and credit to judicial proceedings of every U.S. state, territory, or possession (i.e. Puerto Rico, U.S. Virgin Islands).
− Required to give a federal judgment the same force and effect as it would be given under the preclusion rules of the state where the rendering federal court sits.

Question 23

Federal Courts Faith & Credit

Answer 23

− Required to give state court judgments the same preclusive effect as a state court is required to give another state court judgment.

Question 24

Doctrine of Comity

Answer 24

– A court MAY (but is not required to) give full faith and credit to judgments from foreign countries.

Question 25

Full Faith & Credit – Ceremonial & Common Law Marriage

Answer 25

The validity of a marriage is determined by the law of the state with the most significant relationship to the spouses.

− A marriage that is valid where formed is valid everywhere, UNLESS it violates the strong public policy of another state.

− Most states will honor a common law marriage validly established in another state.

Question 26

Full Faith & Credit – Family Law Judgments Divorce

Answer 26

→A divorce validly granted in another state is entitled to full faith and credit in ALL other states.

Question 27

− Ex Parte Divorce (where only one spouse is before the court)

Answer 27

→may be maintained without personal jurisdiction over the absentee spouse IF the plaintiff spouse is a domiciliary of the state where the court sits.

Question 28

Economic or Child Custody/Support

Answer 28

→ The court MUST have had personal jurisdiction over the defendant-spouse in order for the judgment to be given full faith and credit.