Conflict Of Laws Flashcards
How do courts determine which state has the greater interest?
A three-step process is used:
Step 1: If the court finds that one state has an interest in the application of its policy based on the circumstances and the other state has none, it should apply the law of only the interested state.
Step 2: If the court finds an apparent conflict between the interests of the two states, it should reconsider to see if a more moderate and restrained interpretation of the policy or interest of one state may avoid the conflict.
Step 3: If, upon reconsideration, the court finds that a conflict between the legitimate interests of the two states is unavoidable (a true conflict), it should apply the law of the forum state.
*** This approach DOES NOT change depending on the type of action involved (i.e. contract, tort, property).
How do courts determine which state has the most significant relationship to a tort claim?
A court must consider the following factors: (1) where the injury occurred; (2) where the conduct causing the injury occurred; (3) the domicile, residence, incorporation, and place of business of the parties; AND (4) where the relationship between the parties is centered.
If it is not clear which state has a more significant relationship to the occurrence and the parties, courts will focus on the policy interests of the different laws (especially its own state policy interests applicable to the case). Most courts will apply local state law and further local policies unless there is a strong reason not to do so.
