Conflict of Laws Flashcards
Recognition of Judgments - Analysis Overview
- Is the rendering jurisdiction a sister state or a foreign country?
(a) Sister state:
* * Are the reqs of full faith and credit satisfied? - Yes, move on
* * Are there any valid defenses? - No => Recognition
(b) Foreign country:
* * Is the foreign judgment entitled to comity? - Yes =? Recognition
Rec of Judg - Sister States - Full Faith and Credit
Reqs for full faith and credit:
(1) Jurisdiction - Rendering state must have had jx over the parties and subject matter (PJ+SJ).
* * EXCEPTION - If the issue of jx was fully and fairly litigated, jx determination ITSELF gets FFC. (NB: Includes waiver of PJ)
(2) Merits - Judgment entered by the rendering state must have been on the merits.
* * Things NOT on the merits:
(a) SoL
(b) Dismissal for lack of PJ
(c) Dismissal based on misjoinder
(d) Dismissal based on improper venue
(e) 12(b)(6) - SOMETIMES
* * Things ON the merits:
(a) Default judgments (treat all facts as admitted)
(b) Consent judgments entered after settlement
(3) Finality - Judgment must be a final judgment.
(a) Judgment on appeal NOT final.
(b) Modifiable divorce/alimony decrees final as to past payments but NOT as to future.
- Evaluate all of the above using law of the RENDERING state.
Rec of Judg - Sister States - Valid Defenses
Valid defenses:
(1) Penal judgments - Punishes offense against the public; state was P
* * NB - Final tax judgments ARE recognizable
(2) Extrinsic fraud - Judgment obtained by fraud that couldn’t be corrected during the regular course of proceedings leading to judgment (e.g. bribe)
INVALID defenses (often tested):
(1) Public policy
(2) Mistakes (should’ve been challenged via appeal)
Rec of Judg - Foreign Countries
- Recognition if source of obligation is comity or treaty
- Determining comity:
(a) Evaluate many of the same principles as for FFC - E.g., finality, merits
(b) Other considerations:
(1) Did foreign court have jx? - Greater leeway here to question jx than w sister state
(2) Were the procedures fair? - More discretion here too
Choice of Law - Overview
- Typically, forum court in q uses its own choice of law approach to determine choice
(a) Exceptions:
(1) Fed court sitting in diversity - Uses choice of law of state in which it sits
(2) Transferred diversity cases - Transferred within fed system, applies choice of law approach of transferor
(b) Occasional restrictions on approach:
(1) Constitutional - Due Process and FFC - Limit only if forum chooses a state’s law that has NO significant contact w and/or legit interest in the litigation
(2) Statutory - E.G. Borrowing statute - If forum state has statute directing choice of law, apply that
Choice of Law - Approaches
- Vested Rights/First Restatement
(a) Choose law of place WHERE claim arose
(b) Use vesting rules to determine where claims arose depending on substantive area of law
(c) NB: Same vesting rule generally applied to entire claim - Interest Analysis
(a) Consider which states have a legit interest in the outcome
(b) False Conflict - Only one state has a legit interest => Apply law of the interested state
(b) True conflict - Two+ states have legit interest => Apply forum law IF forum is interested (almost always)
(c) NB: Unlike other two, substantive area of law DOESN’T matter - Most Significant Relationship/Second Restatement
(a) Apply the law of the state which is most significantly related to outcome
(b) To determine, look at:
(1) Connecting facts, AND
(2) Policy principles at stake (like interest analysis)
(c) NB: Each issue can be analyzed separately, unlike vesting
Choice of Law - Substantive Areas - Torts
- First Restatement - Governing law is WHERE injury occurred
- Second Restatement:
(a) Factual connections:
(1) Place of injury
(2) Place of conduct causing injury
(3) Place where parties are at home
(4) Place where relationship, if any, is centered
(b) Policy principles
(1) Relevant policies of forum state
(2) Relevant polices of other connected states - Governing law for both almost always where injury occurred.
(a) EXCEPTION (for interest analysis and most sig relationship) - Where:
(1) Rule is a loss distribution rule (e.g., loss limitations/damage caps, vicarious liability, immunity), AND
(2) Parties share a common domicile => APPLY LAW OF COMMON DOMICILE
Choice of Law - Substantive Area - Contracts
- Choice of law provisions - Enforceable if (1) valid, AND (2) express
(a) Often tested/invalid areas:
(1) Law selected as no reasonable relationship to K.
(2) Provision was included w/o true mutual assent (e.g. misrepresentation). - First Restatement vesting rules:
(a) If case about formation - Law of place of ~execution~
(b) If case about performance - Law of place of ~performance~ - Second Restatement considerations:
(a) Factual connections:
(1) Place of contracting
(2) Place of negotiating
(3) Place of performance
(4) Where parties are at home
(b) Policy principles:
(1) Relevant policies of forum state
(2) Relevant polices of other connected states
(3) Reasonable expectations of the parties (NB: NOT here for torts)
Choice of Law - Substantive Areas - Property
- One area where all approaches essentially converge
- Immovable/Real Property - Apply law of the situs
- Movable/Personal Property:
(1) If inter vivos tx => Apply law of situs at time of tx
(2) If inheritance => Apply law of decedent’s domicile at date of death
Choice of Law - Substantive Areas - Family Law
- Marriage - If marriage is valid where performed, recognized as valid EVERYWHERE
(a) EXCEPTION - Domiciliaries of one state ~temporarily~ relocate to another to perform a marriage that violates a prohibitory rule in home state - Prohibitory rule - Expresses strong public policy regarding marriage; cf. w directory rules, which are administrative
- Divorce - Forum applies its own divorce laws
- Legitimacy:
(a) Legitimacy of child => Law of mother’s domicile at time of birth
(b) Validity of subsequent acts of legitimation => Law of father’s domicile
Choice of Law - Defenses/Args Leading to Diff Results
- Public policy - Forum court will NOT apply law against its own ~fundamental~ public policy
- Procedural rules - Forum court ALWAYS applies its own procedural rules
(a) SoL - Typically viewed as procedural, EXCEPT:
(1) Borrowing statutes - Apply the SHORTER of either the forum or foreign limitations
(2) Limitations that condition a substantive right - If normal choice of law leads to application of foreign statute that ~creates~ a substantive right, apply ENTIRE statute, INCLUDING SoL (e.. wrongful death statutes)
Domicile
- Domicile by choice - Individual w domicile capacity acquires a domicile when:
(1) Physically present, AND
(2) Intends to remain indefinitely/permanently - Domicile by operation of law - Individual who lacks domicile capacity is assigned one by law
(a) Children:
(1) Newborns - Domicile of parents
(2) Divorce - Domicile of custodial parent
(b) Mental incompetents - Domicile of parents
(1) If becomes incompetent AFTER acquiring domicile by choice - RETAINS chosen domicille
