Conflicts of Laws Flashcards
What are the two prerequisite conditions for a recognition of judgments?
1) A judgment has been entered by a court in one jurisdiction
2) a party is seeking to have that judgment recognized by a court in a different jurisdiction.
In conflicts of laws, what is the “rendering” jurisdiction?
The jurisdiction where a judgment was originally entered.
In conflicts of laws, what is the “recognizing” jurisdiction?
The jurisdiction where recognition of a judgment is being sought.
Why would a plaintiff want to seek recognition of a judgment?
To use the rendering state’s enforcement mechanisms in the recognizing state.
Why would a defendant want to seek recognition of a judgment?
To prevent a plaintiff from relitigating a claim or issue.
Recognition of a judgment rendered in a sister state is required if:
(1) The requirements of full faith and credit are satisfied; and
(2) there are no valid defenses.
What three things are required to satisfy the Full Faith and Credit clause?
(1) jurisdiction
(2) judgment on the merits
(3) finality
For purposes of full faith and credit, what judgments are not considered on the merits?
(1) lack of jurisdiction
(2) misjoinder
(3) improper venue
(4) failure to state a claim
[note that this is not an exhaustive list]
For purposes of full faith and credit, is a default judgment considered a judgment on the merits?
Yes
For purposes of full faith and credit, is a consent judgment entered after settlement considered a judgment on the merits?
Yes
The law of the _________ state are used to evaluate whether a judgment satisfies the full faith and credit requirements.
rendering
When a judgment is recognized, the law of the _______ state governs the method of enforcement.
enforcing
What two types of judgments are not entitled to full faith and credit?
(1) penal judgments
(2) judgments obtained by extrinsic fraud
What is “extrinsic fraud”?
Fraud that could not be corrected during the regular course of proceedings leading to the judgment.
Is public policy a defense to full faith and credit?
No
Give an example of a public policy issue that would not give rise to a valid defense against full faith and credit.
P obtains a judgment in State A against D for failure to pay on a gambling contract. Gambling contracts are unenforceable in State B. P can still satisfy full faith and credit and receive recognition in State B.
Is mistake a defense to full faith and credit?
No
Give an example of mistake that would not give rise to a valid defense against full faith and credit.
P sues D in State A for failure to pay on a gambling contract. Gambling contracts are unenforceable in State B. State A applies State B law but still enters a judgment for P. P can still satisfy full faith and credit and receive recognition in State B.
When is the judgment of a foreign court recognized?
When the court, in the exercise of its discretion, determines that the principles of comity are satisfied.
What are two key differences between comity and full faith and credit?
(1) the court has more leeway to consider the issue of jurisdiction; and
(2) the court considers whether the procedures in the foreign court were fair.
When does a choice of law question arise? (two conditions)
(1) the lawsuit involves factual connections with multiple states; and
(2) the states have different laws leading to different results.
When deciding a choice of law question in state court, the governing law is the law selected by the ______ court according to its choice of law approach.
forum
When a diversity case is filed in a proper venue and the case is transferred within the federal system, the transferee court applies the choice of law approach of the ________ court.
Transferor
When a diversity case is filed in an improper venue or in defiance of a forum selection clause, the law of the _________ court will apply.
Transferee
What limits does the Constitution place on a state’s choice of law determinations?
The state cannot apply the law of a state that has no significant contact with and/or legitimate interest in the litigation.
State the first paragraph of a choice of law analysis.
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 __________ approach.
State the second paragraph of a vested rights analysis.
Under the vested rights 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.
State the second paragraph of an interest analysis approach.
Under the interest analysis 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 (this is called a “true conflict”). If the forum state has no legitimate interest (a “false conflict”), it will apply the law of another interested state.
State the second paragraph of the most significant relationship analysis.
Under the most significant relationship test, 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 the connecting facts and policy principles.
What is the vesting rule for a torts case?
The vesting rule for torts cases applies the law of the place of injury.
What are the factual connections for a torts case (2d restatement approach)?
Factual connections in a torts case include the place of injury, the place of the conduct causing injury, where the parties are at home, and where the relationship, if any, is centered.
What are the policy principles for a most significant relationship analysis?
(1) needs of the interstate and international systems
(2) relevant policies and interests of the forum
(3) policies and interests of other interested jurisdictions
(4) whether the expectations of the parties should be protected
(5) the basic policies underlying the particular substantive field of law
(6) whether application of a given law will aid certainty, predictability, and uniformity of result
(7) ease of determining and applying a specific law
In a torts case, the law applied will almost always be the law of the place of injury unless:
(1) The rule at issue is a loss distribution rule
(2) the parties share a common domicile
What are two reasons to invalidate a choice of law clause in a contract?
(1) the law selected has no reasonable relationship to the contract
(2) the provision was included without true mutual consent
What is the vesting rule for a contracts case involving a question about validity or formation?
The vesting rule for contracts cases involving the validity or formation of a contract applies the law of the place of contract execution.
What is the vesting rule for a contracts case involving a question about performance?
The vesting rule for contracts cases involving issues of performance applies the law of the place of performance.
What are examples of contract formation issues?
(1) capacity
(2) formalities
(3) consideration
(4) validity of contract
(5) defenses to formation
(6) nature and boundaries of the duty of performance
(7) whether a contractual provision is to be interpreted as a promise or a condition
What are examples of contract performance issues?
(1) time and place of performance
(2) manner of performance
(3) whether performance has been sufficient
(4) the person who is obligated to render performance
(5) excuses for nonperformance
What are the factual connections for contracts cases (2d restatement approach)?
(1) the place of contracting
(2) the place of negotiation
(3) the place of performance
(4) the place where the parties are at home
(5) the location of the subject matter of the contract
What law is applied to issues of immovable/real property?
the law of the situs
What law is applied to issues of movable/personal property?
if it is an inter vivos transaction, the law of the situs at the time of the transaction
if it is an inheritance, the law of the decedent’s domicile at the date of death
What law does a forum apply in a divorce case?
the forum will apply its own laws. the state has an interest in applying its own law because at least one of the parties must be domiciled in the forum in order for the forum to have jurisdiction over the case.
What law is applied to an issue of child legitimacy?
the law of the mother’s domicile at the time of the child’s birth
What law is applied to the validity of acts of legitimation concerning paternity?
The law of the father’s domicile.
Is public policy a defense to a choice of law selection?
Yes. A forum court will not apply a law that is against its own fundamental public policy.
Remember that this is different than the rule for recognition of judgments.
What procedural rules does a court apply?
A forum court always applies its own procedural rules.
What law is applied to issues of intangible property?
The law of the state where transfer of ownership occurred (usually the domicile of the debtor for both the vested rights and most significant relationship test)
What are examples of procedural rules?
rules of civil procedure, rules of evidence, burden of proof, rebuttable presumptions (but NOT irrebuttable presumptions), statutes of limitations, existence of a privilege
What are examples of substantive rules?
Irrebuttable presumptions, statute of frauds, parol evidence, contribution among joint tortfeasors, adverse possession, measure of damages
What is required to establish domicile?
(1) physical presence
(2) intent to remain in the new domicile
When is a person assigned a domicile by operation of law?
(1) newborns are assigned the domicile of their parents
(2) incompetents are assigned the domicile of their parents, but if a person chooses a domicile and later becomes incompetent, he retains the chosen domicile.
