Conflict of Laws Flashcards
When does a recognition of judgments question arise?
- A judgment has been issued by one jurisdiction.
- A party is seeking to have that judgment recognized in another jurisdiction.
What is the rendering jurisdiction and what is the recognizing jurisdiction?
Rendering jurisdiction: where the judgement was originally entered.
Reconizing jurisdiction: where recognition is being sought - will always be NY court.
What requirements of full faith and credit need to be satisfied?
- Jurisdiction: the rendering state must have had jurisdiction over the parties and the subject matter.
Exception: when the issue of jurisdiction has been fully and fairly litigated, then the jurisdictional determination is itself entitled to full faith and credit.
- Merits: the judgment entered by the rendering state must have been on the merits (including default judgment and consent judgments after settlements)
Examples of judgments not on the merits include dismissals based on: (i) personal jurisdiction, (ii) improper venue, (iii) misjoinder, (iv) demurer/failure to state a claim/12(b)(6) without prejudice.
- Finality: the judgment entered by the rendering court must be a final judgment.
Judgment on appeal in the rendering jurisdiction, which is not final.
These three requirements are evaluated using the law of the *rendering *state.
What are the valid defenses to full faith and credit?
- Penal Judgments: a penal judgment is not entitled to full faith and credit. A penal judgment is one that punishes an offense against the public. In practice, this means that the plaintiff in the suit that led to the judgment was the state.
- Extrinsic Fraud: a judgment obtained by extrinsic fraud is not entitled to full faith and credit. Extrinsic fraud is fraud that could not be corrected within the normal operation of the judicial proceeding (e.g. bribery).
Both defenses are very narrow.
How are foreign judgments recognized?
The court will look at the same principles as full faith and credit, but will ask two additional questions:
- Did the foreign court have jurisdiction? (Apply U.S. concepts of personal and subject matter jurisdiction to the foreign judgment).
- Were the procedures in the foreign court fair?
How does NY determine choice of law question?
Under New York’s approach, the court will consider which states have a legitimate interest in the outcome of the litigation. The court will apply New York law as long as it has a legitimate interest. If New York has no legitimate interest, the court will apply the law of another interested state.
What do the Neumeier rules apply to?
Tort cases
*Neumeier *Rule: If the parties are domiciled in the same state, apply the law of the __________________?
**Exception: **If the rule at issue is strictly about conduct regulation, then the __________________________ applies?
Common domicile.
The rule applies to tort issues relating to loss distribution (e.g. loss limitations, immunities, and vicarious liability).
If conduct regulation - law of the place of injury!
Neumeier Rule: If the parties are domiciled in different states, apply the law of the __________________? What is the exception?
Place of injury!
Exception: If the state of the place of injury has no legitimate interest, then the law of an interested state should be applied instead. If New York is interested, then apply New York law.
With contracts, a choice of law provision will be enforced if it is ___________________?
Valid and express
When would one find a choice of law provision in a contract invalid? What is the NY statutory exception to this rule?
- The provision was included without true mutual assent.
- The law selected has no reasonable relationship to the contract.
NY has a special statute that applies to large contracts that creates an exception to this rule:
a. If the contract is for at least $250,000, parties may choose NY law even if the contract has no connection with NY.
b. If the contract is for at least $1,000,000, the parties may choose NY law *and *may include a clause specifying NY as the forum.
What law governs issues dealing with automobile insurance contracts?
In NY, all issues regarding the rights and duties under an automobile insurance policy are governed by the state where the policy was written.
When dealing with real property, what is the choice of law rule?
Apply the law of the situs (place where the property is).
When dealing with personal property, what are the choice of law rules?
- If the case involves an inter vivos transaction, apply the law of the situs at the time of transaction.
- If the case involves a matter relating to inheritance, apply the law of the decedent’s domicile at date of death.
What are defenses to choice of law applications? What are the exceptions?
- Public Policy: A forum court will not apply a law that is against its own fundamental public policy. This has essentally been folded into the interest analysis approach - so it doesn’t come up as a separate argument.
- Procedural Rules: Regardless of the outcome of the choice of law analysis, the forum court will always apply its own procedural rules. Generally, SOL have historically been viewed as procedural by NY courts.
Exception: Borrowing statute - apply the shorter period.
But if plaintiff is from NY, NY courts will not apply its borrowing statute.
Exception: If the normal choice of law analysis leads to the application of a foreign statute that creates a substantive right, then apply the entire statute. In other wores, see if the statute creates BOTH the right to recover and the SOL.
