Conflict of Laws Flashcards
Two Testing Areas
- Recognition of Judgments
- Choice of Law
Recognition of Judgments
When do recognition of judgment questions arise?
When, (1) a judgment has been entered by a court in one jx, and (2) a party is seeking to have that judgment recognized by a court in a different jx.
Recognition of Judgment
Rendering jx
Where the original judgment was made
Recognition of Judgment
Recognizing Jx
Where the recognition is being sought
Recognition of Judgment
What is the analysis?
- Is the rendering jx a sister state or foreign country?
- If a sister state
1. Are the requirements of full faith and credit satisfied?
2. Are there any valid defenses?
**If answer to 1 is yes and answer to 2 is no recognition required. ** - If foreign country
1. Is the foreign judgment entitled to comity?
Recognition of Judgment
Requirements for Full Faith and Credit to be Satisfied
- The rendering state must have had jx over the parties (SMJ and PJ)
- EXCEPTION: when the issue of jx has been fully and fairly litigated. - The judgement entered by the rendering state must have been on the merits.
- The judgment entered must be a final judgment.
These three requirements are evaluated using the law of the rendering state.
Recognition of Judgment
Examples of Cases not decided on the merits
S.O.L.
Lack of Jx
Misjoinder
Improper Venue; and
Failure to State a Claim
Recognition of Judgments
CAUTION: Default Judgments
A Default Judgment treats all factual contentions as admitted and is therefore heard on the merits.
Consent Judgment entered after settlement is also considered “on the merits.”
Recognition of Judgments
Are there any valid defenses?
- A penal judgment is not entitled to full faith and credit. It is one that punishes an offense against the public.
- A judgment obtained by extrinsic fraud is not entitled to FF&C. Extrinsic fraud is fraud that could not be corrected during the regular course of proccedingsleading to the judgment.
Recognition of Judgments
CAUTION: Invalid Defenses
- Public Policy
- Mistake
Recognition of Judgment
Foreign Judgments
Under principles of comity, a recognizing court will exercise discretion to decide whether the foreign judgment should be recognized.
Recognition of Judgment
What do judges consider when dealing with foreign rulings?
- Did the foreign court have jx? (discretion applied)
- Were the procedures in the foreign court fair? (discretion applied)
Choice of Law
When do choice of law questions arise?
- The lawsuit involves factual connections with multiple states, AND
- The multiple states will have different laws leading to different results.
Choice of Law
Which state’s law will govern?
Generally, the governing law is the law selected by the forum court according to its choice of law approach.
Choice of Law
Exceptions to the general rule
- Diversity Cases filed in Federal District Court (choice of law approach of the state where it sits.)
- Transferred Diversity cases.
- When filed in proper venue and transferred apply the og courts C.o.L approach
- When improper, or filed in defiance of a FSC, law of the tranferee court will apply.
Forum Selection clause
Choice of Law
Constitutional Restrictions on Forum Court’s Choice
The Constitution imposses a limit only if a state’s law is chosen that has no significant contact with and/or legitimate interest in the litigation.
Choice of Law
Statutory Restrictions on Forum Court’s Choice
If the forum state has a statute that directs a choice of law, then the forum should apply that statute instead of the usual choice of law approach.
Borrowing Statutes
Choice of Law
Vested Rights Approach
First Restatement
- Under this approach the court will apply the law of that state mandated by the applicable vesting rule. That rule is selected according to the relevant substantive are of law.
- Categorize the law, state the applicable vesting rule, apply the vesting rule to to determine the governing law, apply that law to determine result
EX. This is a torts case. Therefore, the applicable vesting rule is the place of injury. Here, the injury occurred in Michigan and thus Michigan law applies. Under Michigan law, a non-paying passenger cannot recover against the driver, and so the claim is barred.
Choice of Law
Interest Analysis
Under this approach the court will consider which states have a legitimate interest in the outcome of the litigation. The forum court will apply its own law as long as it has a legitimate interest. If the forum state has no legitimate interest, it will apply the law of another interested state.
Choice of Law
Types of Conflict for an Interest Analysis
- False - arises when only one state has a legitimate interest
- True - arises when two or more states have a legitimate interest
Choice of Law
Most Significant Relationship Approach
Under this approach the court will apply the law of the state which most significantly related to the outcome of the litigation.
1. Discuss connecting facts
2. Discuss policy principles
3. Choose governing law based on most significant relationship
4. Apply the governing law to determine the result.
Substantive Application
Torts First Restatement (Vested Rights)
The governing law is the law where the injury occurred.
Substantive Application
Torts Second Restatement (Interest):
Factual Connections
Considerations include:
1. place of injury
2. place of the conduct causing the injury
3. place where the parties are at home
4. place wheter the relationship, if any, is centered
Substantive Application
Torts Second Restatement (Interest):
Policy Principles
- The relevant policies of the forum state.
- The relevant policies of other connected states
Substantive Application
Usual Outcomes and Exceptions
The governing law will almost always be the law of the place of injury.
Excpetions usually kick in when:
1. The rule at issue is a loss distribution rule (loss limitation, vicarious liability, and rules eliminating liability)
2. The parties share a common domicile.
Substantive Application
Choice of Law Provision
A choice of law provision will be enforced if it is valid and express.
If in doubt find the provision invalid.
Substantive Application
When is a Choice of Law provision invalid?
- The law selected has no reasonable relationship to the contract.
- The provision was included without true mutual consent.
Substantive Application
Contracts First Restatement (Vested Rights Approach)
- If the case is about formation, you apply the law of the place of contracting. Considerations include: (1) capacity, (2) contractual formalities, and (3) consideration.
- If the case is about performance, you apply the law of the place of performance.
Substantive Application
Contracts Second Restatement (Interest Analysis)
Factual Considerations:
1. Place of contracting
2. Place of negotiation
3. Place of Performance
4. Place where parties are at home
Policy Principles include:
1. Relevant policies of the forume state,
2. Relevant policies of other connected staes
3. Reasonable expectations of the parties
Substantive Application
Real Property
Apply the law of the situs.
Substantive Application
Personal Property
- If the case involves an inter vivos transaction, apply the law of the situs at the time of the transaction
- If the case involves a matter relating to inheritance, apply the law of the decedent’s domicile at the date of death (rule of D’s)
Substantive Application
Family Law - Marriage
If a marriage is valid where performed, it will be recognized as valid everywhere.
EXCEPTION: When domilicaries of one state temporariliy relocate to another state to enter into a marriage that violates a prohibition in their home state, the state of domicile will not recognize their marriage.
Substantive Application
Family Law - Divorce
The forum will apply its own divorce laws.
Rationale: to acquire jx, at least one of the parties must be domiciled in the state.
Substantive Application
Family Law - Child’s Status
(Legitimacy Rules)
- Legitimacy of a child is governed by the law of the mother’s domicile at the time of the child’s birth.
- The validity of subsequent acts of legitimation concerning paternity are governed by the law of the father’s domicile.
Choice of Law
Defenses
- Public Policy
- Procedural Rules
Choice of Law
Defenses - Public Policy
A forum court will not apply a law that is against its own fundamental public policy.
REMEMBER: This is for choice of law NOT recognition of judgment
Choice of Law
Defenses - Procedural Rules
Regardless of the outcome of the choice of law analysis, the forum court will always apply its own procedural rules.
Choice of Law
Statute of Limitations
Generally, the statute of limitations is views as procedural unless:
1. Borrowing Statute: direct a court to look at both the forum limitation period and the foreign limitations period and then apply the shorter of the bunch.
2. Limitations that condition a substantive right: If the normal choice of law analysis leads to the application of a foreign statute then apply the entire statute.
Domicile
Domicile by Choice
An individual with domicile capacity acquires domicile when:
1. physical presence in the new domicile; and
2. intent to remain permanently
Domicile
Domicile by Operation of Law
An individual who lacks domicile capacity is assigned to one by law.
Domicile
Children
- Newborns are assigned the domicile of their parents
- In cases of divorce, children are assigned the domicile of their custodial parent.
Domicile
Incompetents
- Individual who is mentally incompetent is assigned the domicile of their parents
- If an individual becomes incompetent after acquiring a domicile by choice, they retain the chosen domicile
