Traditional Approach Flashcards
Place of Wrong (Torts) (Territorial Approach):
Alabama R.R.
Rule: the cause of action arises under the laws of the state where the last act occurred.
Because injury occurred in Mississippi, rights vested there and Mississippi law applied
Place of Contracting (Territorial Approach):
Milliken v. Pratt
Rule: the validity of a contract is to be determined by the law of the state in which the contract was made; if it is valid there then it is valid everywhere and an action on the contract will be sustained even in the courts of a state whose law does not permit such a contract.
Rule: the law of the place where performance is (to be) carried out governs suits arising out of nature and sufficiency of performance
Rule (Restatement): forum law applies to the determination of where the contract was made; once the determination is made, the law of the place of contract applies to the substantive merits of the suit
Situs of Property:
Immovable Property
Lex Rei Sitae: apply the law of the state where the immovable is located
Certainty, convenience, and clarity of title
Situs of Property:
Movable Property
Rule for inter vivos property: apply the law of the state where the goods are located at the time the action occurred (form of situs rule)
Rule for intestate and testate property (wills): apply intestate law of the state of decedent’s domicile at time of death
Domicile:
White v. Tenant
Rule: state of domicile at death is the law that controls probate.
held that decedent changed his domicile and PA law controlled probate
Traditional Practice: Escape Devices
Components of traditional rules
i. Legal category (e.g., tort, contract, property)
ii. Applicable law
iii. Factor which “connects” the legal category with the state that supplies the applicable law
Escape Device - Characterization:
Levy v. Daniels U-Drive
Forum court usually decides how to characterize a claim.
held this was a contract rather than torts case and Conn. law applies because the rental contract was made in Conn.; court looked at policy behind Conn. law – highway safety
Escape Device - Characterization (2):
Haumschild
Rule: the law of the domicile state applies in determining any issue of incapacity to sue based on familial relationship.
held this was a domestic matters issue rather than tort issue and the law of the domicile controls domestic relations; thus wife could sue under Wisconsin law.
Escape Device - Substance or Procedure:
Rule: the forum will apply forum law with respect to procedure.
1) Does the rule guide human conduct and create incentives or liabilities (substantive)?
2) Does the rule serve to create the efficient presentation of evidence (procedural)?
Escape Device - Substance or Procedure:
Statute of Limitations
Panama case
Statute of limitations serves both substantive and procedural purposes
• Procedural: protects courts with limited resources from stale claims
• Substantive: protects defendants
held statute of limitations was procedural so longer federal statute of limitations.
SOL substantive when: built into statute to limit a right/serve actual repose purpose.
Escape Device - Substance or Procedure:
Limit on Recovery
Kilberg v. NE Airlines (plane crash)
Mass. law would apply to the substantive claim because it was the place of the tort, but Mass. law limited recovery to $15,000; court applied NY law to recovery issue (no limit on recovery) based on (a) public policy, and (b) holding that remedial laws are procedural)
Escape Device - Substance or Procedure:
Survivability
Grant (AZ car crash)
D died before suit brought, under law of place of tort can’t bring suit if D already dead.
survivability is procedural (purpose of law is key) :. apply forum law
CA survival statute applies because it is procedural relating to the enforcement of legal claims for damages and the suit may proceed
Escape Device - Renvoi
In re Schneider’s Estate
Rule: a state adheres to renvoi doctrine where its conflict law dictates that it apply the “whole law” (including the conflicts law) of another state.
Once the forum (State A) decides to look at the “whole law” of another state (State B), there are three possible results.
i. Conflicts law of State B may refer the matter to State B’s own internal law. The substantive law of State B is applied and the matter ends.
ii. Conflicts law of State B may refer the matter back to the forum state (“remission”).
Schneider - land in Switzerland, decedent had Swiss & US citizenship, NY domicile, issue of proceeds from land sale. court looked to “whole law” of situs (“accepting the renvoi”) and Swiss conflicts law looked to the law of the domicile so NY substantive probate law applied.
iii. Conflicts law of State B may refer the matter to the law of a third state (State C) (“transmission”).
1) If the transmission is to the “whole law” of State C (look to State B’s conflicts law), continue to look to the conflicts law of the state(s) referred until there is a reference to substantive law.
2) If the transmission is to the substantive law of State C, then State C’s law applies and the matter ends.
When does renvoi apply?
i. Forum decides when to apply renvoi
Escape Device - Public Policy
Rule: the public policy exception is extremely limited and should be considered only after determining the applicable law; it should be used only to repel obnoxious foreign laws rather than justifying the applicable forum law
Escape Device - Public Policy
Loucks v. Standard Oil of NY
Rule: a tort committed in one state creates a right of action in another state unless public policy forbids it.
Test - Must be outrageous to public policy.
