Conflict of Laws Flashcards
domicile by operation of law
Domicile. by operation of law occurs when a person does not have the legal capacity to choose her domicile, as in the case of infants or incompetents
sources of state choice-of-law rules
- specific CoL statues
- contractual CoL agreements
- general CoL rules governed by forum state common law
how due process clause affects choice of law
Under 14A, SCOTUS has held that forum state may apply its own law to a particular case only if it has significant contact or aggregation of contacts with state such that CoL is neither arbitrary nor fundamentally unfair
in what two cases will forum states limited contacts with a case violate due process?
- fact that cause of action was brought in its courts
- fact that plaintiff once lived there
how has SCOTUS held the term “public acts” in the full faith and credit clause must be defined?
“public acts” includes both a state’s statutes and its substantive case law - each state must give full faith and credit to them
when does the full faith and credit clause require a forum state to apply the law of another state?
when the forum state has no contacts with or interest in the controversy
when does the full faith and credit clause not require a forum state to apply the law of another state?
- the forum has contacts or interest in the controversy
- applying another state’s law would be in violation of its own legitimate public policy
when will courts enforce a contractual choice of law provision?
if it is
1. a valid agreement with an effective CoL clause;
2. applicable to the lawsuit under the K terms;
3. reasonably related to the lawsuit (law is from state w/connections to parties or K); and
4. not in violation of the public policy of the forum state or another interested state
three approaches courts apply in CoL cases
as long as no const mandate or statute on point -
1. vested rights approach (restatement 1)
2. most significant relationship approach (restatement 2)
3. governmental-interest approach
what does the vested-rights approach look to in deciding CoL?
jx where parties’ rights are vested, meaning where act or real that gives rise to CoA was created
loc where last liable event took place
vested-rights approach - order of operations
- characterize issues in CoA - subset or procedural
- if proc - apply own proc rules
- if subs - ID subst area (using own state law)
- apply CoL rules per subst area
what is the main focus of the most significant relationship approach?
policy objectives behind competing laws of different states
significant-rel approach - 7 policy principles
- needs of interstate/intl sys
- relevant policies of forum
- policies of interested states
- party expecs
- policy underlying substantial areas of law
- certainty, predictability, uniformity
- ease of future application
most-sig-rel approach - order of operations
- isolate precise legal issue that results in conflict between states
- ID policy objectives each state’s law seeks to achieve wrt issue
- determine each state’s interest in view of its policy obj to determine which has superior connection with dispute
diff CoL may be made per diff issues
main thrust of governmental-interest approach to CoL
presumed that forum state will apply own law, but parties may request that another state’s law be applied
under gov-interest approach, when should forum dismiss the case?
if it is a disinterested forum (no interest in applying own laws) and forum non conveniens is available
factors considered in forum non conveniens
- availability of alternative forum
- law that will apply
- location of parties, witnesses, evidence
under govt-int, when do states have an interest in applying conduct-regulating laws?
when wrongful conduct occurs w/in their territory, or
state domiciliary is injured
under govt-int, when do states have an interest in applying their loss-shifting (immunizing) laws?
when doing so would benefit a state domiciliary
Under Klaxon, in a fed div case, what CoL rules must fed dist court apply?
CoL rules of state in which it sits (if rules valid under FFC and DPC clauses)
if transferred from fed court in another state under fed venue law, apply law of first state
doctrine of renvoi
requires that forum court applying the law of another state to decide a matter also apply that foreign state’s COL rules
Dépeçage
modern CoL approach - requires forum to consider sep which state’s law should govern for each subset issue if would be resolved diff
federal tort claims act CoL rule
FTCA requires application of whole law - including conflict rules - of place where act/omission occurred
when there is an express CoL provision, then that law will govern unless
- it is contrary to public policy
- there is no reasonable basis for the parties choice; or
- there was fraud or mistake and true consent was not given
three general arguments against application of foreign law
law to be applied is
1. procedural rather than substantive
2. against public policy
3. a penal law
a forum state’s law is applied to determine whether a foreign state law is substantive or procedural, so long as…
the result is not arbitrary or so unreasonable as to constitute a denial of DPC or FFAC
substantive or procedural: application of parol evidence rule
substantive; gov’d by laws of state that govern validity of K
substantive or procedural: evidence admis
usually procedural
if a foreign state’s law is procedural, whose law does the forum state apply?
the forum state’s
if a foreign state’s law is substantive, whose law does the forum state apply?
forum state must apply its CoL rules to determine
substantive or procedural: existence or validity of a privilege
depends on forum state’s CoL approach
vested rights: procedural
most sig rel: law of state w most sig rep to privileged comm
govt int: underlying ints of each state apply
substantive or procedural: state of limitations
procedural if just limits remedy
substantive if limits statutory right
substantive or procedural: limitation period created by wrongful death act
substantive - statutory right
substantive or procedural: SoL for prescription or adverse possession
if SoL vests as result of prescription or AP, substantive
what does a “borrowing statute” do?
bars suit on foreign causes of action that are precluded under the shorter of the forum state’s statute of limitations OR SoL of place where CoA arose - prevents forum shopping
treatment of SoL as subst vs. proc under R2CoL
forum will apply its own state’s SoL barring claim, unless
1. maintenance of claim would serve no substantial interest of the forum and
2. the claim would be barred under the SoL of a state having a more significant relationship to the parties and occurrence
substantive or procedural: statute of repose
substantive
(limits time within which action may be brought, regardless of whether injury occurred / discovered)
substantive or procedural: statute of frauds
substantive
substantive or procedural: whether tort action survives death or plaintiff
substantive
substantive or procedural: measure of damages
states split
majority rule: damages are substantive
what is the main rule of Erie?
in federal diversity cases, fed Dist courts must apply substantive law of court in which they sit
apply fed proc if exists
to determine if state law substantive or proc, court considers whether failure to apply it leads to diff outcomes
requirements for judgment to meet full faith and credit requirements
must
1. have been brought in proper jx (or fully and fairly litigated)
2. be finalized with no appeals outstanding
3. be on the merits (subst issues were decided by a court, rather than matter being resolved by procedural issues; includes default jgmt)
if there are inconsistent judgments between the same parties wrt the same CoA, which do courts recognize?
the last judgment rendered
when does collateral estoppel apply?
- the substantive issue of the case was previously litigated
- the issue was necessary to supporting the judgment in the initial proceeding
- the party against whom collateral estoppel will be applied was either a party in the original suit or had access to info from the orig proceeding and had full and fair ops to litigate
effects of res judicata (2)
- merger (merges P’s CoA into P’s judgment - D can’t relitigate on merits)
- bar (if final judgment in favor of D, P may not file another suit for same CoA in other state)
when are divorce decrees entitled to FFAC?
so long as
1. og state had jx to issue (at least one person resides where decree was issued)
2. decree is valid in og state
valid bilateral divorce
when court has PJ over both spouses; AND
at least one spouse is domiciled in issuing state
valid ex parte divorce
based on domicile of only one spouse. for FFAC, must:
1. adhere to SMJ - at least one person must reside in state
2. PJ must exist over one spouse
difference between treatment of bilateral and ex parte divorce under FFAC
for ex parte, FFAC not given to other marital agreements (property rights, alimony, child custody)
if divorce decree addresses these things, then enforceable if non domiciled spouse agrees
CoL effect of UCCJEA
under the UCCJEA, a court can make initial custody decisions if it is in the child’s home state
all other states must give FFAC
other states cannot modify unless og court has no significant connection to child or parents anymore
under the uniform probate code, by whose law is meaning /effect or will or similar instrument determined?
determine by the law of state selected in the instrument
unless app of that law contradicts the public policy of the state enforcing it
under what law is the validity of a will determined?
where testator domiciled at time of death
under what law is question regarding transfer of personal property from someone who dies intestate determined?
law of deceased’s domicile at time of death
under what law is question regarding transfer of real property from someone who dies governed?
law of the situs
under the UCC, what law generally governs perfection and security interest priority?
state in which debtor is located
unless registered organization - located in state of reg
what happens to perfection of security interest if debtor or collateral moves to another state?
secured party generally has fixed period of time (usu 4 months for debtor, one year for collateral), else no longer perfected
deemed never perfected against previous or subsequent purchaser of collateral for value
When the debtor and the collateral are located in different states, there are special rules. If the security interest is a possessory security interest, then the law of the state where the collateral is located determines perfection, the effect of perfection or nonperfection, and the priority of that security interest. UCC § 9?301(2). in addition,
ith regard to tangible negotiable documents, goods, instruments, money, or tangible chattel paper, the law of the state where the collateral is located determines the effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral, while the law of the place of the debtor continues to determine the issue of perfection itself unless the collateral is a fixture or timber to be cut, in which case the law of the location of the collateral also controls the issue of perfection itself.
what result: A domiciled in state 1 and Ks with B to sell him land in state 2. Per state 1 law, a purchaser has equitable title to land under sale K. Per state 2, they do not.
B has no equitable interest in land, because the land is located in state 2, and state 2 does not use equitable conversion
four factors considered in tort action - significant-relation test
- where did injury occur
- where did conduct causing it occur
- what is domicile of parties
- place where red centered
vested Rs approach to contract
law of place where executed governs if: valid of K, defenses to formation, interpretation of K
where actually performed: time and manner; who is ob to perform; sufficiency of performance; excuses for nonperformance
contracts: most sig rel approach
- breach of K: look at location of K negotiation and performance; where subject matter located; location of parties domiciles
contract for sale of land: CoL rule
where land is located, unless more significant rel
personal property CoL rule
where place of delivery is located, unless more significant rel
any transaction not covered by UCC - vested rights
where property located at time transaction occurred?
any transaction not covered by UCC - sig rel
where property located when transaction occurred?
if personal property in a will, ask…
where is domicile of person at death
if real property in a will, ask…
where is state where property was located at time of death
marriages are valid in one state if in another generally
grounds for divorce are generally governed by the law of…
domicile of plaintiff
general approach to choice of law in prenup
split
some states say state with most sig rel with agreement governs interp
others apply law of state where prenup was executed
procedural or substantive: choice of law rules
substantive
