Conflicts of Laws Flashcards
Recognition of Judgment
When a party seeks to enforce a judgment in a sister state (offensive or defensive).
Analysis:
1) Was the rendering jurisdiction in sister state or foreign country?
2) Is judgment entitled to full faith and credit (U.S. state) or comity (foreign)?
SISTER STATE:
- Are requirements of full faith and credit satisfied? (YES)
- Are there any valid defenses to recognition of judgment? (NO)
- FFAC required (ART 4).
FOREIGN COUNTRY:
- Is foreign judgment entitled to comity?
Full Faith & Credit Requirements
Recognizing Jx must look at Rendering State Rules to see if these are satisfied:
1) Jurisdiction (personal and subject matter)
- - - Exception: cannot challenge jurisdiction if fully and fairly litigated
2) Judgment must have been on the merits
- - - Jx dismissal / Improper venue / Statute of limitations bars are not on the merits
- - - Default/ Consent judgment IS on the merits
- - - Failure to state claim DEPENDS - With prejudice IS on the merits
3) Judgment must be final
- - - Appeals are not final
- - - Divorce Decrees: Past payments ARE final; Prospective payments are NOT final.
Defenses to Full Faith & Credit
1) Penal Judgments are not enforced
- - “A penal judgment is one that punishes an offense against the public.” State v. D.
- - Exception: Tax judgments & Punitive damages will be enforced by another state
2) Extrinsic Fraud
- - If judgment based or obtained by extrinsic fraud, then not enforced (judge bribe)
INVALID defenses to Full Faith & Credit
- public policy
- misapplication of law - even if state mistakingly applied law, will uphold FFAC because it should be appealed in rendering court.
Comity or Treaty in Foreign Judgments
Discretionary analysis:
1) Jurisdiction: American court can take a fresh look & assess w/our due process principles)
2) Were procedures of foreign court fair? If not, then American court doesn’t have to recognize judgment.
Choice of Law Questions
Two conditions Present:
1) Lawsuit involves factual connections to multiple states; and
2) those states have different laws that would lead to different results.
Forum court will use its own choice of law approach to determine which state’s laws apply.
LIMITS:
1) Constitution - only limits where court chooses a law with no significant contact or no legitimate interest.
2) Statutes - if forum state has statute that dictates choice of law, this overrides common law.
Diversity cases in Federal Courts: applies choice of law approach of the state in which it sits. If transferred w/in federal system, then choice of law approach from the original transferor court (if proper venue).
Questions on Choice of Law
Structure of Choice of Law Answer:
1) Describe choice of law:
The issue presented is which state’s law will govern. The governing law will be selected by the forum court using [choice of law approach].
2) Describe choice of law approach (1 of 3 approaches)
- A) Vested Rights (1R)
- B) Interest Analysis
- C) Most Significant Relationship (2R)
3) Apply choice of law approach to the facts & reach conclusion.
Vested Rights (1R)
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 area of law.
APPLY:
1) Categorize substantive area of law (torts, contract, etc.)
2) on the basis of that categorization, the vesting rule is . . . (place of injury, etc.)
3) Apply vesting rule to determine applicable law
4) Apply governing law to determine result
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.
Analysis:
1: Discuss which states have legit interests
2: Characterize the type of conflict.
- - - False conflict - only one state has legit interest. - - -BUT SEE DISTRIBUTION OF LOSSES EXCEPTION FOR TORTS (apply law of the state)
- - - True Conflict - two or more states have a legit interest
- Choose governing law based on type of conflict -
- - - False conflict - Apply the law of the interested state
- - - True conflict - if the forum is interested, apply forum law - Apply the governing law to determine the result and Conclude.
Most Significant Relationship (2R)
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.
Application:
1) Connecting Facts - what happened where
2) Policy principles - who has greater interest
3) Choose governing law based on most significant relationship
4) Apply governing law to determine the result & conclude
TORTS
Vesting Rules (1R): Governing law is place where injury occurred.
Most Significant Relationship (2R):
Factual: (1) place of injury; (2) conduct causing injury; (3) where parties are at home; (4) place where the relationship is centered
When law of place of injury will NOT be applied for:
1) LOSS DISTRIBUTION RULE; AND
- - - - - (1) loss limitations, “damage caps”; (2) Vicarious Liability rules; (3) Immunity rules eliminating liability (example: spousal immunity)
2) parties share common domicile.
When both apply - apply Law of the common DOMICILE
CONTRACTS
Threshold issue: Is there a choice of law provision and is it enforceable?
- If Yes, if (1) valid and (2) expressed, and will replace choice of law analysis.
- Invalid if law choice has no reasonable relationship to contract.
- Invalid if no mutual assent (if one party misrepresents)
- If No, move forward with choice of law analysis…
CHOICE OF LAW: --------------- What are the vesting rules for particular contracts claims? 1) Formation issues - apply law of place where contract was executed 2) Performance issues - apply law of place where contract would be formed --------------- Substantial Relation (R2): Factual connections - place of contracting - place of negotiation - place of performance - place where the parties are at home Policy principles: - policy of forum state - policy of other connected states \+ reasonable expectations of parties
PROPERTY
Immovable (Real) Property: Apply law of the situs (where the property is located).
Movable Property: RULE 1 (inter vivos): Apply rule of the situs - at the time of the transaction. RULE 2 (inheritance): Decedent's domicile at time of death.
FAMILY LAW
MARRIAGE:
Rule: if a marriage is valid where it is performed, it will be recognized as valid everywhere.
Prohibitory Rules Exception: If temporary relocation to avoid rule of domicile, then invalid in home state.
DIVORCE:
Courts apply own forum law rules.
CHILD STATUS (LEGITIMACY):
1) legitimacy of child is governed by the law of mother’s domicile at time of child’s birth;
2) Subsequent acts of legitimation concerning paternity are governed by law of father’s domicile.
Changes to Choice of Law Analysis
Public Policy Exception: forum court will not apply a law that is against it’s own FUNDAMENTAL public policy (offensive)
Procedural Rules: Forum court always follows its own procedural rules
- - - Statute of limitations are procedural (for choice of law purposes, whereas substantive for ERIE purposes) - - -
SOL EXCEPTION # 1: BUT BORROWING STATUTES: direct court to look at the SOL periods from other states in certain situations; and taking the shorter one.
SOL EXCEPTION # 2: Limitations that condition substantive right - if court choice of law applies foreign statute, and it creates right to cover w/a limitation, then limitation becomes substantive (attached in fundamental way to recover) and must be applied.
