Constitutional Limitations on Conflict of Laws

Question 1

General Constitutional Provisions -

1. Full Faith And Credit Clause
   
   1. Effect
2. Due Process Clause
   
   1. Effect

Answer 1

General Constitutional Provisions -

1. Full Faith and Credit Clause – U.S. const. Art. IV, Sec. 1 – Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state.
   
   1. Effect - sister states need to defer to each other’s laws.
2. Due Process Clause – U.S. const. Amend. XIV - …nor shall any state deprive any person …of property without due process of law.
   
   1. Effect - a state can limit contractual rights made in its own borders; BUT the forum can’t apply forum law to take away the contracted rights of the parties without some legitimate connection to the case.

Question 2

Allstate Standard

1. General Rule
2. Brennan’s Concurrence.
3. List of Sufficient and Insufficient Contacts/Justifications
4. Statute of Limitations

Answer 2

1. General Rule - For a state’s substantive law to be selected in a constitutionally permissible manner, that State must have a significant contact or significant aggregation of contacts, creating State interests, such that choice of its law is neither arbitrary nor fundamentally unfair.
2. Brennan’s Concurrence - bifurcates the FFC and DPC issues and addresses them independently.
   
   1. FFC - no violation unless forum choice of law disrupts national unity by infringing on legitimate interests of sister state.
      
      1. unsound choice of law doesn’t equal violation of FFC
      2. if no other state with connection to case has conflicting law, then no violation of FFC for forum to apply its law
   2. DPC - no violation unless choice of law is totally arbitrary or fundamentally unfair to litigants.
      
      1. Presumption of fairness re judicial effeciency of forum
      2. choice of law that frustrates justifiable expectation of parties may be unfair
3. Sufficient Contacts/Justifications - no certain number is sufficient. LOOK AT CASES
   
   1. plaintiff employed in forum
   2. defendant does business in forum
   3. surviving spouse becomes resident of forum before suit
   4. contract performable anywhere
   5. no choice of law clause in K
   6. defendant had reason to know plaintiff would move to forum
4. Insufficient Contacts/Justifications
   
   1. contact sufficient for personal jurisdiction over the parties does not equate to contacts sufficient to apply forum law.
5. Statute of Limitations - ​there’s nothing fundamentally unfair about a state applying its own statute of limitations. States have the substantive right to establish remedies and prevent stale claims.

Question 3

Full Faith and Credit - Obligation to Provide a Forum

1. General Rule
2. Exception
3. Legitimate Interest Laws vs. Discriminating Laws

Answer 3

Full Faith and Credit - Obligation to Provide a Forum

1. General Rule - FFCC of Constitution requires states to provide a forum for the enforcement of the public laws of sister states
2. Exception - forum not required to hear case if there is a conflict of legitimate state interests.
   
   1. but can’t arbitrarily decide not to hear case arising under another state’s laws.
3. Legitimate Interest vs. Discriminating Law -
   
   1. Legitimate Interest Laws - those that promote a state’s objectives by defining substantive rights of parties.
      
      1. courts can decide which states’ legitimate policies should control
   2. Discrimnating Laws - laws that discriminate against another state’s laws by directing courts not to entertain claims.
      
      1. presumptively unconstitutional because goes against unifying principles of FFC.

Question 4

Other Full Faith and Credit Issues

1. Limiting Transitory Causes of Action
2. Deferring to Sister State Legislatures

Answer 4

1. Transitory Causes of Action - A state cannot create a transitory cause of action (a vested right) and then prohibit it from being adjudicated in other jurisdictions under comity principles.
   
   1. Any court with jurisdiction has the ability to adjudicate the case on the basis of the transitory right alone.
2. Deferring to State Legislatures- States courts cannot simply defer to the legislatures of sister-states that defeat the unifying purposes of the full faith and credit clause.