Conflicts of Laws

Question 1

Where does the obligation to recognize the judgment of a sister state rendering court’s judgment come from?

Answer 1

It is a constitutional obligation arising from the Full Faith and Credit Clause.

Question 2

What are the two questions to ask in sister state judgment recognition situations?

Answer 2

1. Are the requirements for full faith and credit satisfied?
2. Are there any valid defenses?

Question 3

What are the three requirements that must be satisfied before the Full Faith and Credit Clause kicks in?

Answer 3

1. Jurisdiction;
2. Judgment on the merits; and
3. final judgment.

Question 4

In what ways must the rendering court have had jurisdiction for Full Faith and Credit Clause purposes?

Answer 4

The rendering state must have had jurisdiction over the parties (i.e., personal jurisdiction) and jurisdiction over the subject matter.

Question 5

When is the issue of jurisdiction entitled to full faith and credit?

Answer 5

When the issue of jurisdiction has been fully and fairly litigated, the jurisdiction determination is itself entitled to full faith and credit.

Question 6

What is the judgment on the merits requirement for Full Faith and Credit Clause purposes?

Answer 6

The judgment entered by the rendering state must have been on the merits.

Question 7

What are some examples of judgments not on the merits?

Answer 7

Dismissals based on lack of personal or subject matter jurisdiction, misjoinder, improper venue, and failure to state a claim.

Question 8

What is the finality requirement for Full Faith and Credit Clause purposes?

Answer 8

The judgment entered by the rendering court must be a final judgment.

Question 9

What law is used to determine whether the rendering court had jurisdiction and made a final judgment on the merits?

Answer 9

The requirements are evaluated using the rendering state’s law. The law of the enforcing state, however, governs the method of enforcement.

Question 10

What are the valid defenses to Full Faith and Credit?

Answer 10

1. Penal judgments; and
2. Extrinsic fraud.

Question 11

How are penal judgments defenses to full faith and credit?

Answer 11

A penal judgment is not entitled to full faith and credit. A penal judgment is one that punishes an offense against the public. Typically, these types of cases include ones where the plaintiff in the suit was the state.

Question 12

How is extrinsic fraud a defense to full faith and credit?

Answer 12

A judgment obtained by extrinsic fraud is not entitled to full faith and credit. Extrinsic fraud is fraud that could not be corrected during the regular course of proceeding leading to the judgment (e.g., judge who was bribed; but not a perjurious witness).

Question 13

Is public policy a defense to full faith and credit>

Answer 13

No.

Question 14

Is mistake a defense to full faith and credit?

Answer 14

No.

Question 15

Where does the obligation to recognize the judgment of a foreign country rendering court’s judgment come from?

Answer 15

The source of obligation to recognize the judgment is comity or treaty.

Question 16

When will a recognizing court recognize a judgment from a foreign country rendering court?

Answer 16

Under principles of comity, a recognizing court will exercise discretion to decide whether the foreign judgment should be recognized.

Question 17

What will a recognizing court consider when determining whether to recognize the foreign country rendering court’s judgment?

Answer 17

1. Whether the court had jurisdiction.
2. Whether the procedures in the foreign court were fair.

Question 18

A choice of law question can arise when which two conditions are satisfied?

Answer 18

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

Question 19

A federal court sitting in diversity applies which choice of law approach?

Answer 19

A federal court sitting in diversity applies the choice of law approach of the state in which it sits.

Question 20

When a diversity case is filed in a proper venue and is then transferred within the federal system, what choice of law approach does the transferee court apply?

Answer 20

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.

Question 21

When a diversity case is filed in an improper venue or in defiance of a forum selection clause, what choice of law approach does the transferee court apply?

Answer 21

When a diversity 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 will apply.

Question 22

What are the three main analytical approaches to a choice of law issue?

Answer 22

1. The vested rights approach of the fist restatement;
2. the most significant relationship approach of the second restatement; and
3. the interest analysis approach.

Question 23

Under the vested rights approach of the first restatement, what are the three steps?

Answer 23

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

Question 24

Under the most significant relationship approach of the second restatement, how is a choice of law issue approached?

Answer 24

Identify the state having the most significant relationship with respect to the issue and hand and then apply that state’s law on that issue. To do this, consider the connecting facts in a given case and whether the policy-oriented principles should be considered.

Question 25

Under the interest analysis , how is a choice of law issue approached?

Answer 25

In the interests analysis approach, start with the assumption that the forum will apply its own law; then consider whether the forum has any interest in the litigation. If not, it is a false conflict situation, and the forum will apply the law of the second state (the interested state). a question arises when both the forum and the second state have interests (i.e., a true conflict situation)—in such situations, apply the forum law.

Question 26

What is the governing law for torts cases under the first restatement vesting approach?

Answer 26

The governing law in torts cases under the first restatement vesting approach is where the injury occurred.

Question 27

What is the governing law for torts cases under the second restatement most significant relationship approach?

Answer 27

Under the second restatement most significant relationship approach, the following factual considerations should be considered:
1. The place of injury;
2. The place of the conduct causing the injury;
3. The place where the parties are at home; and
4. The place where the relationship, if any is centered.

The following policy principles should be considered:
1. The relevant forum policies of the forum state; and
2. The relevant policies of other connected states.

Question 28

What is the usual common outcome under all three approaches for torts cases?

Answer 28

For all three approaches, the governing law will almost always be the law of the place of injury.

Question 29

What two exceptions are there to the rule that generally the location of the injury will determine the governing law in a torts place?

Answer 29

1. The rule at issue is a loss of distribution rule (e.g., damages caps, vicarious liability rules, and rules eliminating liability (e.g., immunity rules); and
2. The parties share a common domicile.

Question 30

What does a choice of law provision mean in a contract case?

Answer 30

If the choice of law provision is enforced (must be valid and express), the provision displaces the choice of law analysis that the court would otherwise perform. If the choice of law provision is rejected, then the court should conduct a choice of law analysis.

Question 31

What are two reasons that a choice of law provision might be invalid?

Answer 31

1. The law selected has no reasonable relationship to the contract; and
2. The provision was included without true mutual assent (e.g., misrepresentation of the law).

Question 32

Under the first restatement vesting rules, what is the applicable law for contract formation cases?

Answer 32

If the case is about formation, apply the law of the place of contracting.

Question 33

Under the first restatement vesting rules, what is the applicable law for contract performance cases?

Answer 33

If the case is about performance (i.e., the time, place, and manner of performance; excuses for nonperformance), apply the law of the place of performance.

Question 34

Under the second restatement most significant relationship approach, what are the factual and policy considerations for a contracts case?

Answer 34

Factual consdierations:
1. The place of contracting;
2. The place of negotiation;
3. The place of performance; and
4. The place where the parties are at home.

Policy principles:
1. The relevant policies of the forum state;
2. The relevant policies of other connected states; and
3. The reasonable expectations of the parties.

Question 35

For property cases, generally what law governs cases involving real property?

Answer 35

In cases of real property, apply the law of the situs.

Question 36

For property cases, generally what law governs cases involving movable personal property?

Answer 36

1. If the case involves an inter vivos transaction, apply the law of the situs at the time of the transaction.
2. If the case involves a matter relating to inheritance, apply the law of the decedent’s domicile at the date of death.

Question 37

If a marriage is valid where performed where will it be recognized?

Answer 37

If a marriage is valid where performed, it will be recognized as valid everywhere.

Question 38

In divorce cases, which law applies?

Answer 38

The forum will apply its own divorce laws.

Question 39

What are the child legitimacy rules?

Answer 39

1. Legitimacy of a child is governed by the law of the mother’s domicile at the time of the child’s birth.
2. The validity of subsequent acts of legitimation concerning paternity are governed by the law of the father’s domicile.

Question 40

What is the public policy defense to choice of law?

Answer 40

A forum court will not apply a law that is against its own fundamental public policy.

Question 41

What is the procedural rules defense to choice of law?

Answer 41

Regardless of the outcome of the choice of law analysis, the forum court will always apply its own procedural rules.

Question 42

Are Statutes of LImitations substantive or procedural?

Answer 42

The general rule is that statutes of limitations are viewed as procedural.

Unless:
1. a court is borrowing a statute that has a limitations period.
2. if the normal choice of law analysis leads to the application of a foreign statute that creates a substantive right, apply the entire statute.

Question 43

When does an individual with domicile capacity acquire domicile?

Answer 43

An individual with domicile capacity acquires a domicile when the individual has:
1. physical presence in the new domicile; and
2. An intent to remain permanently (or indefinitely) in the new domicile.

Question 44

How is domicile determined for a person who lacks domicile capacity?

Answer 44

An individual who lacks domicile capacity is assigned one by law.

Question 45

What is the domicile of a newborn?

Answer 45

Newborns are assigned the domicile of their parents.

Question 46

What is the domicile of a child whose parents are divorced?

Answer 46

In cases of divorce, children are assigned the domicile of their custodial parent.

Question 47

What is the domicile of an individual who is mentally incompetent?

Answer 47

An individual who is mentally incompetent is assigned the domicile of their parents.

Question 48

What is the domicile of an individual who becomes incompetent after acquiring a domicile by choice?

Answer 48

If an individual becomes incompetent after acquiring a domicile by choice, they retain the chosen domicile.