Conflicts of Law

Question 1

Rendering Jurisdiction

Answer 1

Place where the judgment was originally entered

Question 2

Recognizing Jurisdiction

Answer 2

Place where recognition is being sought

Question 3

Analysis if rendering jurisdiction is sister state

Answer 3

1. Are the requirements of full faith and credit satisfied?
2. Are there any valid defenses?
   Recognition is required when the answer to #1 is yes and the answer to #2 is no.

Question 4

Analysis if rendering jurisdiction is foreign country

Answer 4

Is the foreign judgment entitled to comity?

Question 5

Requirements for satisfaction of full faith and credit

Answer 5

1. Jurisdiction rule - rendering state must have had PJ and SMJ
2. On the merits - the judgment entered by the rendering state must have been on the merits
3. Finality rule - The judgment entered by the rendering court must be a final judgment. (a judgment on appeal in the rendering jurisdiction is not final)

*rendering state law is used to determine these rules

Question 6

Valid Defenses to full faith and credit

Answer 6

1. Penal judgments - a penal judgment is one that punishes an offense against the public, which in practice means that the plaintiff in the suit that led to the judgment was the state. (penal is not the same as punitive)
2. Extrinsic Fraud - fraud that could not be corrected during the regular course of proceedings leading to the judgment.

*Public policy and mistake are attractive defenses but they are invalid!

Question 7

When does a choice of law question arise?

Answer 7

1. the lawsuit involves factual connections with multiple states; AND 2. the multiple states will have different laws leading to different results.

Question 8

Which state’s law will govern?

Answer 8

The governing law is the law selected by the forum court according to its choice of law approach (assuming no applicable constitutional or statutory restrictions).

Question 9

What choice of law approach does a federal court sitting in diversity apply?

Answer 9

The choice of law approach of the state in which it sits.

When a diversity case is filed in a proper venue, and the case is transferred within the federal system, the federal court applies the choice of law approach of the original (transferor) court. When the case is filed in an improper venue, or filed in a venue in defiance of a forum selection clause, the law of the transferee court (that is, the court to which the case is transferred) will apply.

Question 10

Constitutional choice of law limitation

Answer 10

only imposed if a state’s law is chosen that has no significant contact with and/or legitimate interest in the litigation.

Question 11

Statutory choice of law limitation

Answer 11

If the forum state has a statute that directs a choice of law, then the forum court should apply that statute instead of the usual choice of law approach. ex. borrowing statute

Question 12

Analytical choice of law approaches

Answer 12

1. Vested Rights Approach of the First Restatement
2. Most Significant Relationship Approach of the Second Restatement
3. Interest Analysis (Governmental Interest) Approach

Question 13

Basic Structure of Choice of Law Answer

Answer 13

Paragraph one - state the issue and identify the choice of law approach (ex. “The issue presented is which state’s law will govern the outcome of this litigation. The governing law will be selected by the forum court using the XYZ approach.”)

Paragraph two - describe the choice of law approach

Paragraph three - apply the choice of law approach

Question 14

Structure of Paragraph 2 under Vested Rights

Answer 14

“Under this approach, the court will apply the law of the state-mandated by the applicable vesting rule. That rule is selected according to the relevant substantive area of law.”

Question 15

Structure of Paragraph 3 under Vested Rights

Answer 15

“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.”

Question 16

Structure of Paragraph 2 under Interest Analysis

Answer 16

“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.”

Question 17

Structure of Paragraph 3 under Interest Analysis

Answer 17

“In this case, only Illinois has a legitimate interest. It is interested in permitting recovery to compensate its injured resident (the plaintiff). Michigan is not interested in applying its restriction against recovery simply because the accident occurred there. Rather, it would be interested in applying its restriction only if the defendant were a Michigan resident. But the defendant in this case is for Illinois, so Michigan is not interested. This case is therefore a false conflict, and Illinois law should apply. Under Illinois law, the plaintiff may recover.

Question 18

Structure of Paragraph 2 under Most Significant Relationship

Answer 18

“Under this approach the court will apply the law of the state which is most significantly related to the outcome of the litigation. To determine this, the court will consider connecting facts and policy principles.

Question 19

Structure of Paragraph 3 under Most Significant Relationship

Answer 19

“In this case, the factual connections are split. The accident occurred in Michigan, and the injury was sustained there. But both the plaintiff and the defendant are from Illinois. As a matter of policy, Illinois seems to have the greater interest because the law at issue is a loss distribution rule and both parties share an Illinois domicile. As a result, Illinois appears to have the most significant relationship to the dispute and its law should apply. Under Illinois law, the plaintiff may recover.”

Question 20

Analytical Steps for the Vested Rights Approach

Answer 20

1. Characterize the area of substantive law.
2. Determine the particular choice of law rule.
3. Localize the rule to be applied.

Question 21

Analytical Steps for the Most Significant Relationship Approach

Answer 21

1. Consider the connecting facts: the specific contacts with each jurisdiction.
2. Consider the policy-oriented principles: (I) needs of interstate systems; (ii) relevant policies of forum; (iii) policies and interests of other jurisdictions; (iv) expectations of parties; (v) basic policies underlying substantive law; (vi) predictability and uniformity of result; (vii) ease of determination of foreign law.

Question 22

Analytical Steps for the Interest Analysis Approach

Answer 22

1. Assume the forum will apply its own law unless requested to apply another.
2. If it is requested to apply another state’s law, check for false conflict (forum has no interest).
3. If false conflict, apply the law of the interested state.
4. If true conflict, the forum reconsiders its policies.
5. If the forum has no interest in applying its own law, it should dismiss the case if forum non conveniens is available; if not, it may apply interested state’s law or law of the state that most closely resembles its own law.
6. If no interested state, most courts apply law of forum.

Question 23

Vested rights approach rule for torts

Answer 23

place of wrong (injury)

Question 24

Most significant relationship approach rule for torts

Answer 24

Consider the place of: injury; conduct causing the injury; residence and/or business of the parties; and center of the parties’ relationship

Question 25

Vested rights approach rule for Contracts

Answer 25

Validity problem - place of making

Performace problem - place of performance

Question 26

Vested rights approach AND Most significant relationship approach rule for worker’s compensation

Answer 26

Forum

Question 27

Vested rights approach AND Most significant relationship approach rule for property

Answer 27

Real property - situs

Personal Property - (1) testamentary and intestate transfer - domicile of owner at time of death (2) inter vivos transactions - situs of property at the time of the relevant transaction

Question 28

Vested rights approach AND Most significant relationship approach rule for Family Law

Answer 28

Marriage - place of celebration (if marriage can be upheld under that law)

Legitimation after birth - father’s domicile

Adoption - forum

Question 29

Vested rights approach AND Most significant relationship approach rule for corporations

Answer 29

Place of incorporation

Question 30

Most significant relationship approach rule for contracts

Answer 30

Consider the place of: contracting; negotiation; performance; location of subject matter; domicile, residence, nationality, incorporation, and business of parties.

Question 31

Domicile of minor

Answer 31

Domicile of origin (of parents)

Question 32

Domicile of person who lacks capacity to choose domicile

Answer 32

Domicile by operation of law (of parents) or former domicile

Question 33

Domicile of person who is present in the location with the intent to remain there permanently or for an indefinite period

Answer 33

Domicile by choice is established

Question 34

For Erie purposes are choice of law rules procedural or substantive?

Answer 34

Substantive