Convergence

Question 1

Allstate v. Hague

Answer 1

Rule: the policy interest in the case must be effectuated by the law at issue so that application of the law is neither arbitrary nor fundamentally unfair.

accident in WI between two WI citizens; widow brought suit in Minn. because Minn. allowed stacking of her three policies and WI did not; court allowed Minn. law to apply.

Plurality accepts MN law over FFC and DP challenges.

Need significant contacts or significant aggregate contacts.

Question 2

Watson

Answer 2

LA citizen was injured by machine produced by IL company; plaintiff sued company’s insurer under LA direct action statute;

court held LA could apply its own law because the insured co. did business all over the country (due process) and LA has an interest in protecting its citizens from injury in LA (full faith and credit)

Question 3

Phillips Petroleum (class action in KS)

Answer 3

Test:
Significant contacts or aggregation of contacts - state int.
Fairness - cannot be arbitrary or unfair

Is procedural interest alone sufficient for full faith and credit? Probably not

Supreme Court held that KS can retain jurisdiction but must go through the constitutional conflicts analysis for each state claim.

Question 4

Tax Board v. Hyatt

Answer 4

CA tax board audited Hyatt in NV; Hyatt claims intentional torts committed by the auditors; CA immunized tax auditors, but NV did not immunize for intentional torts;

NV court applied its own law because the forum had articulated an interest in protecting citizens specifically from intentional torts from anyone).

Ct reasoned that NV’s interest in redressing intentional tortious conduct was sufficient to decline to accord FF&C to CA’s immunity.

Question 5

Clay

Answer 5

After-the-fact move into the forum is not relevant for this analysis.

IL citizen purchased property insurance from British insurer doing business in IL and FL; insured moved to FL and lost the property; insurer claimed insured did not bring claim within required 12 months; FL statute of limitations was 5 years;

court applied FL statute of limitations because insurer did business in FL and insured moved there before the loss (due process) and FL has an interest in protecting the personal property of its citizens (full faith and credit))

Question 6

John Deere

Answer 6

PA resident was injured in PA by a machine manufactured in IL by a DE corp.; PA statute of limitations had run, so plaintiff brought suit in MS (no relationship to claim); plaintiff then transferred the case to PA.

MS choice-of-law applied even after the action was transferred to PA. MS follows traditional rule. So MS statute of limitations applies (procedural).