Conflicts of Law Flashcards
Under the Due Process Clause of the Fourteenth Amendment, what must a state show to apply it’s own laws?
That the case has: significant contacts or significant aggregation of contacts with the state such that a choice of law is neither arbitrary or fundamentally unfair.
Ex.) If the forum state’s only contact is the fact that the cause of action was brought in that court, or that the plaintiff once lived there, then application of the substantive law of the forum state will violate due process.
Most courts will enforce a contractual choice of law provision if it is:
a. ) A valid agreement;
b. ) applicable to the lawsuit under the terms of the contract;
c. ) reasonably related to the lawsuit; and
d. ) Not in violation of the public policy of the forum state or another interested state.
What are the three approaches to choice-of-law?
- ) Vested Rights Approach (First Restatement)
- ) Most Significant Relationship (Second Restatement)
- ) Governmental-Interest
What’s the basic analysis of the Vested-Rights approach?
Looks to where the act or relationship that gave rise to the cause of action occurred or was created.
The Most Significant Relationship approach applies the laws of the state with . . .
the most significant relationship to the issue in question.
What is the forum court’s analysis when applying the Most Significant Relationship approach?
- ) Isolate the precise legal issue that results in a conflict between competing states;
- ) identify the policy objectives that each state’s law seeks to achieve with respect to such issue; and
- ) determine each states interest in view of its policy objectives, concluding which state has a superior connection
What is the presumption under the Governmental Interest Approach?
That the forum state will apply its own laws.
However, parties may request that another state’s law be applied because that state has a greater interest in the outcome.
Under the Governmental-Interest approach, what happens if the forum court has no interest in the litigation?
Then the court applies the law of the state that does have an interest in the case. (This is called a “false conflict.”)
Under the Governmental-Interest approach, what happens if the forum state and another state both have an interest in the litigation?
Then the forum state will review its own policies to determine which law should apply. If the conflict cannot be resolved, then the law of the forum state is applied. (This is called a “true conflict.”)
Under the Governmental-Interest approach, what happens if the court determines that it does not have an interest in the case, and forum non conveniens is available?
Then the court should dismiss the case.
Under the Governmental-Interest approach, what happens if the court determines that it does not have an interest in the case, and forum non conveniens is not available?
Then the forum state may either make its own determination as to which law is better to use, or apply the law that most closely matches its own state.
Under the Governmental-Interest approach, what happens if no state has an interest?
The law of the forum state is applied.
Depecage
Essentially, the forums state will apply the laws of multiple states. They’ll apply them on an issue-by-issue basis.
Renvoi
When a court applies the laws of another state, that court must also apply the conflict-of-law rules of that state.
Federal Tort Claims Act
Requires the application of the whole law, including conflict of law rules, of the place where the act or omission occurred.
Tort cases under the Vested-Rights approach
Apply the laws of the state where the injury occurred.
Tort cases under the Most-Significant Relationship approach - default rule
the place of injury controls, unless another state has a more significant relationship to the parties or to the occurrence of the tort.
If there is an express choice of law provision in a contract, 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.
Under the Vested-Rights approach, what does the court look to when assessing the validity, defenses to, and interpretation of a contract?
The place of execution.
Under the Vested-Rights approach, what does the court look to when assessing the details of performance of a contract?
Location where the contract was to be performed.
What is the general rule under the Most Significant Relationship approach to contract cases?
When the location of negotiation and performance are the same, the forum court will apply the law of that state.
Default Rule under Most Significant Relationship Approach:
Land Contracts
Controlled by the state of the situs.
Default Rule under Most Significant Relationship Approach:
Personalty Contracts
Law of the state where the place of delivery is located.
Default Rule under Most Significant Relationship Approach:
Life Insurance Contracts
Controlled by the law of the state where the insured is domiciled.
