Conflict of Laws

Question 1

Key principle #1:

Answer 1

Conflict of Laws issues are embedded in other MEE subject areas. Conflict of Laws will not be a stand-alone question. Conflict of Laws is commonly tested with Family Law, Civil Procedure, or Decedents’ Estates.

Question 2

Key principle #2:

Answer 2

When Conflict of Laws is combined with Family Law, these are the issues generally tested:

Question 3

Full faith and credit:

Answer 3

A state must recognize final judgments of other states so long as the judgment is on the merits and the other state had jurisdiction. (F2017, F2007, J2004, F2000)

Question 4

Recognition of marriage:

Answer 4

A marriage which is valid under the law of the state where it was contracted will be valid elsewhere unless it violates a strong public policy of the state that has the most significant relationship to the spouses and the marriage. Some examples of what may violate public policy include incest or polygamy. Examples of what do not violate public policy include blood test requirements, marriage license requirements, and recognition of common law marriage. Common law marriage is virtually always tested when this principle is tested. So, know that if the marriage is recognized by the state where the couple entered into the marriage, it will be recognized by all other states. (F2017, J2011, J2006, J1995)

Question 5

Jurisdiction over divorce vs. jurisdiction over spousal support and property division:

Answer 5

Personal jurisdiction over both spouses is not necessary to render a divorce decree. The state rendering the decree only needs jurisdiction over the plaintiff spouse. However, personal jurisdiction over both spouses is necessary to issue a binding property division order or support order. (This embodies the concept of a “divisible” divorce decree.) (F2007, F2003, F2000, F1996)

Question 6

Recognition of divorce:

Answer 6

A divorce decree must be granted full faith and credit by other states if the court rendering the divorce decree had jurisdiction to enter it. (F2007, F2003, J2000, F2000)

Question 7

Which state’s law governs premarital agreements?

Answer 7

Some states will apply the law of the state where the contract was executed. Other states (probably more numerous) apply the law of the state with the most significant relationship to the parties and transaction. (J2008)

Question 8

Key principle #3:

Answer 8

when Conflict of Laws is combined with Federal Civil Procedure, generally the Klaxon doctrine is tested (i.e., you should know that a federal district court in a diversity case must apply the choice of law approach of the state in which it sits) or change of venue rules are tested (specifically, you should know that if a case is transferred to a more appropriate forum, the law of the transferor court will apply).

Question 9

Klaxon doctrine:

Answer 9

A federal district court sitting in diversity must apply the choice of law approach prevailing in the state in which it sits. Klaxon Co. v. Stentor Elec. Mfg. Co. (J2017, F2012, F2009, J1995)

Question 10

Example of Klaxon doctine:

Answer 10

If a state claim in Michigan is brought by a Michigan plaintiff against an Illinois defendant in a federal district court in Michigan on a diversity basis, the federal district court must apply Michigan choice of law rules when determining which state’s law to apply. This makes sense because it provides no incentive for the parties to forum shop.

Question 11

Change of venue:

Answer 11

A court may transfer a case to any district court in which it could have been brought if convenience and the “interest of justice” favor a transfer. When a case is transferred to a more appropriate forum under this rule, then the new (transferee) court must apply the laws that the original transferor court would have applied (including their state choice of law rules). Note that the result is different if the case was initially filed in an improper forum and was transferred to a proper forum: in that case, the transferee court would apply its own law, rather than the law of the transferor court, since the transferor court would not have the power to hear the case in the first place. (F2012, J1995)

Question 12

Statute of limitations:

Answer 12

Generally, a court will apply its own procedural laws even if the substantive laws of another state are applied to the case. A statute of limitations is generally considered procedural. Generally, a court applies its own statute of limitations unless the claim would be barred by the law of the state with a more significant relationship to the parties. (F1999, F1997)

Question 13

Exception—borrowing statute:

Answer 13

Some states have borrowing statutes which indicate that the other state’s statute should be used in certain cases.

Question 14

Exception—characterization:

Answer 14

When a statute of limitations is specific to a particular kind of claim and was created by the law that created the cause of action to which it applies, courts will often characterize the statute of limitations as substantive. (Traditionally, this was applied only when the foreign statute barred an otherwise timely action, not when it extended the time for bringing the action.)

Question 15

Exception—interest analysis:

Answer 15

Some states will simply use an interest analysis to resolve choice of law issues, including statute of limitations issues.

Question 16

Choice of law clause in a contract claim:

Answer 16

If a contract specifies the state law that it will be governed by, generally that law will apply. The Restatement (Second) of Conflict of Laws provides that the law chosen by the parties will be applied unless (1) the chosen state has no substantial relationship to the parties or the transaction and there is no other reasonable basis for the parties’ choice; or (2) application of the law of the chosen state would be contrary to a fundamental policy of a state that has a materially greater interest than the chosen state in the determination of the particular issue and which, under a “most significant relationship” test, would be the state of the applicable law in the absence of an effective choice of law by the parties. (J2017)

Question 17

Corporations:

Answer 17

The law of the state of incorporation governs existence, structure, and internal matters such as capacity, shareholder’s rights, etc. Rights and liabilities (external matters) are determined by the state with the most significant relationship. (J2021)

Question 18

Tort claim:

Answer 18

A jurisdiction analyzes a specific tort claim under the “most significant relationship” approach found in the Restatement (Second) of Conflict of Laws. The Restatement lists four factors to determine which state has the most significant relationship to the occurrence and the parties (mnemonic=I Can’t Dance, Really).

Picture someone dancing and negligently hitting someone else in the head with his arm, which happened to cross state lines and cause a tort claim to arise: (1) the place where the injury occurred; (2) the place where the conduct causing the injury occurred; (3) the domicile, residence, nationality, place of incorporation, and place of business of the parties; and (4) the place where the relationship, if any, between the parties is centered. (F2009)
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Question 19

Real property:

Answer 19

A court generally uses the law of the situs for land (i.e., the law where the real property is located). Occasionally, the state will characterize a dispute over real property as, say, a contract dispute, and look at which state has the most significant relationship to the property if it makes more sense in the given case. (J1998)

Question 20

Key principle #4:

Answer 20

When Conflict of Laws is tested with Decedents’ Estates, the below issues have been specifically tested:

Question 21

Validity of a will:

Answer 21

At common law, the validity of a will was determined under the law of the state where the testator was domiciled at the time of his death. Under the Uniform Probate Code (UPC), a will is valid if it complies either with the law of the state in which it was executed or with the law of the place where the testator was domiciled when he signed his will or when he died. Many non-UPC states have similar statutes. (J2019)

Question 22

Personal property:

Answer 22

The postmortem distribution of personal property is governed by the law of the state in which the decedent was domiciled at the time of his death. (J2012)

Question 23

Real property:

Answer 23

The postmortem distribution of real property is governed by the law of the situs (i.e., the law of the place where the property is located). (J2012)

Question 24

Inheritance:

Answer 24

Whether a child is entitled to inherit depends on the law of the intestate’s domicile at the time of death. However, this is inapplicable to real property as the law governing real property is the law of the situs. (F1998)