Conflict of Laws

Question 1

Dram Shop Acts

Answer 1

Imply liability on a tavern keeper for injuries by an intoxicated person.

If one state has a Dram Shop Act but one does not, the forum will usually apply the law of the state in which the tavern is located.

Exceptions—If the tavern advertises to residents of other states, the tavern can anticipate out of state residents returning to their home state after visiting. If so, the court may apply the law of the home state instead of the tavern state.

Question 2

“Vested Rights” Choice of Law Approach

Answer 2

Traditional/1st Restatement Approach

The forum must apply the law of the state where the rights of the parties “vested”. I.e., where the act or relationship giving rise to the cause of action occurred or was created.

Will apply the law of the place of the wrong/injury, the place of contracting, or the place of where the property in dispute is located.

Question 3

“Most Significant Relationship” Choice of Law Approach

Answer 3

Modern/2nd Restatement Approach.

The forum may apply the law of the state which has the “most significant relationship” to the issue being decided. Can apply the substantive law of different states.

Applies the following factors in deciding:
- The needs of interstate/international systems;
- Relevant policies/interests of the forum state and other states;
- The justified expectations of parties;
- The notion of judicial economy.

Question 4

“Interest Analysis” Approach

Answer 4

Contemporary Approach.

The default is that the forum should apply the substantive law of the state most legitimately interested in the outcome.

The forum will only apply another state’s law if the forum state has NO legitimate interest.

Focuses on governmental interest.

Question 5

Choice of Law — Torts

Answer 5

Applies the law of the state where the injury occurred, combining both the 1st and 2nd Restatements’ approaches.

Question 6

Procedural v. Substantive Rules

Answer 6

The procedural rules to be applied are always the procedural rules of the forum state.

Procedural rules — govern your rights inside the courtroom. (Burdens of proof, FRE, etc,)

Substantive rules — govern your rights outside of the courtroom. (SoF, PER, etc.)

Question 7

Full Faith and Credit

Answer 7

Usually used in a Family Law question.

A state must recognize final judgments of other states so long as the judgment is on the merits and the other state had jurisdiction.

Question 8

Recognition of Marriage

Answer 8

A marriage which is valid under the law of the state where it was contracted will be valid elsewhere unless it violates a strong public policy of the state that has the most significant relationship to the spouses and the marriage.

Will violate public policy — incest; bigamy.

Won’t violate public policy — blood test requirements; marriage license requirements; common law marriage.

Question 9

Common Law Marriage

Answer 9

If the common law marriage is recognized by the state where the couple entered into the marriage, it will be recognized by all other states because it does not violate public policy.

Question 10

Jurisdiction Over Divorce

Answer 10

Personal jurisdiction over both spouses is NOT necessary to render a divorce decree. The state rendering the divorce decree only needs personal jurisdiction over the plaintiff spouse.

Question 11

Jurisdiction Over Spousal Support

Answer 11

Personal jurisdiction over BOTH spouses is necessary to issue a binding property division order or spousal support order. This embodies the concept of a “divisible” divorce decree.

Question 12

Recognition of Divorce

Answer 12

A divorce decree must be granted full faith and credit by other states if the court rendering the divorce decree had jurisdiction to enter it.

Question 13

Which State’s Law Governs Premarital Agreements

Answer 13

Some states will apply the law of the state where the contract was executed.

Other states (majority) will apply the law of the state with the most significant relationship to the parties and transaction.

Question 14

Klaxon Doctrine

Answer 14

A federal district court sitting in diversity must apply the choice of law approach prevailing in the state in which it sits.

Reasoning — provides no incentive for the parties to forum shop.

Question 15

Change of Venue

Answer 15

A court may transfer a case to any district court in which it could have been brought if convenience and the “interests of justice” favor transfer.

When a case is transferred to a more appropriate forum, then the new court must apply the laws that the original transferor court would have applied, including their choice of law rules.

NOTE: If the case was originally filed in an improper forum and was then moved to the proper forum, the new court would then apply its own law, rather than the law of the original court, since the original court did not have the power to hear the case in the first place.

Question 16

Statute of Limitations

Answer 16

Generally, a court will apply its own procedural laws even if the substantive laws of another state are applied to the case. Statutes of limitation are generally considered procedural.

Generally, a court applies its own SOL unless the claim would be barred by the law of the state with a more significant relationship to the parties.

Question 17

Borrowing Statute Exception (SOL)

Answer 17

Some states have borrowing statutes which indicate that the other state’s statute should be used in certain cases.

Question 18

Choice of Law Clause in a Contract

Answer 18

If a contract specifies the state law that it will be governed by, generally that law will apply.

The Restatement (2nd) of Conflict of Laws provides that the law chosen by the parties will be applied unless —

1. The chosen state has no substantial relationship to the parties or transaction and there is no other reasonable basis for the parties’ choice; or
2. Application of the law of the chosen state would be contrary to a fundamental policy of a state that has a materially greater interest than the chosen state in the determination of the particular issue and which, under a “most significant relationship” test, would be the state of the applicable law in the absence of an effective choice of law by the parties.

Question 19

Corporations

Answer 19

The law of the state of incorporation governs existence, structure, and internal matters such as capacity, shareholder’s rights, etc.

Rights and liability (external matters) are determined by the state with the most significant relationship.

Question 20

Tort Claims

Answer 20

A jurisdiction analyzes a specific tort claim under the “most significant relationship” approach found in the Restatement (2nd) of Conflict of Laws.

The Restatement lists four factors to determine which state has the most significant relationship (I Can’t Dance, Really) —
- Place where the Injury occurred.
- The place where the Conduct causing the injury occurred.
- The Domicile, residence, nationality, place of incorporation, and place of business of the parties.
- The place where the Relationship, if any, between the parties centered.

Question 21

Real Property

Answer 21

A court generally uses the law of the situs for land. I.e., the law where the real property is located.

Occasionally, the state will characterize a dispute over real property as a contract dispute, and thus look at the state with the most significant relationship to the property, if it makes more sense under the circumstances of the case.

Question 22

Validity of a Will

Answer 22

At common law, validity of a will was determined under the law of the state where the testator was domiciled at the time of his death.

Under the UPC, a will is valid if it complies with either the law of the state in which it was executed or the law of the place where the testator was domiciled when he signed his will OR where he died.

Question 23

Personal Property in a Will

Answer 23

The postmortem distributed of personal property is governed by the law of the state in which the decedent was domiciled at the time of his death.

Question 24

Real Property in a Will

Answer 24

The postmortem distribution of real property is governed by the law of situs, i.e., the law of the place where the property is located.

Question 25

Inheritance

Answer 25

Whether a child is entitled to inherit depends on the law of of the intestate’s domicile at the time of death.

However, this is inapplicable to real property as the law governing real property is the law of the situs.