Conflict of Laws

Question 1

Recognition of Judgments Conditions

Answer 1

1. Judgment rendered by court in rendering jurisdiction

2. Party wants judgment recognized by court in recognizing jdx

Question 2

Why do plaintiffs seek recognition of judgments?

Answer 2

In order to access enforcement mechanisms in the recognizing state.

Question 3

Why do defendants seek recognition of judgments?

Answer 3

To prevent a plaintiff from relitigating a claim or an issue.

Question 4

First step in analysis for recognition of judgments?

Answer 4

1. Was the rendering jdx a sister state (or fed court) or foreign country?

Question 5

If sister state or fed v. state court…

Answer 5

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

Recognition req’d when 1. is yes and 2. is no

Question 6

If foreign country…

Answer 6

Is the foreign judgment entitled to comity?

Question 7

Are the reqs of full faith and credit satisfied? First requirement

Answer 7

1. Rendering state must have had jdx over parties and subject matter

EXCEPTION: When issue of jdx has been fully and fairly litigated, jdx determination gets FFC

Watch for situation where D did not have contacts and didn’t respond/attempt to litigate jdx–then no jdx and not litigated

Question 8

Are the reqs of full faith and credit satisfied? Second requirement

Answer 8

2. The judgment entered by the rendering state must have been on the merits. (ex: SOL bar, lack of jdx, misjoinder, imporper venue, dismissal without prejudice are not a decision on the merits)

Default judgment, where jdx was proper, is on the merits.

Question 9

Are the reqs of full faith and credit satisfied? Third requirement

Answer 9

3. The judgment entered by the rendering court must be a final judgment (ex: on appeal = not final)

Modifiable alimony: Not final as to future payments (so a different state court can’t enforce) but final as to past payments (so different court CAN enforce)

Question 10

Three reqs of FFC?

Answer 10

1. Jdx must be proper (SMJ and PJ)
2. The judgment entered by the rendering state must have been on the merits
3. The judgment entered by the rendering court must be a final judgment

Question 11

If a court in one state is trying to decide if it needs to give FFC to decision from another state, which state law applies in determining whether 3 FFC reqs are satisfied?

Answer 11

Law of the rendering state. (Ex: PJ in rendering court but not in new court, new court applies rendering court law and finds there was PJ)

Question 12

Valid defenses to FFC?

Answer 12

1. Penal Judgments

2. Extrinsic Fraud

Question 13

Penal judgments FFC defense

Answer 13

A penal judgment is not entitled to FFC. Penal judgment punishes an offense against the public (P was the state).

Question 14

Extrinsic fraud FFC defense

Answer 14

Judgment obtained by extrinsic fraud not entitled to FFC. EF is fraud that could not be corrected during the regular course of the proceedings leading to the judgment. Ex: Judge was subject to the bribe, not perjury.

Question 15

Attractive but invalid defenses:

Answer 15

1. Public policy: judgment entered by another state but against public policy of enforcing state. Enforcing state has to enforce/give FFC.
2. Mistakes: Judgment state applies another state’s law, but gets other state’s law wrong. Other states still have to give FFC. Should appeal instead of challenging in another state’s court.

Question 16

Foreign court judgments–FFC?

Answer 16

FFC is constitutional. Doesn’t apply to foreign courts. Here we’re worried about comity.

Question 17

Two issues w/ foreign court:

Answer 17

1. Jdx. Enforcing court has more wiggle room to assess/give fresh look at jdx (even if jdx fully litigated in foreign court).
2. Fairness of foreign court procedures. Btw states we wouldn’t allow states to question each others procedures, but not the case w/ foreign courts (ex: Iran doesn’t allow you to call witnesses)

Question 18

Choice of law question arises when these two conditions satisfied:

Answer 18

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

Question 19

Core answer to choice of law question:

Answer 19

The governing law is the law selected by the forum court according
to its choice of law approach (assuming no applicable constitutional or statutory restrictions).

Question 20

In a diversity case, which choice of law rules does a federal court apply?

Answer 20

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

Question 21

In a transferred diversity case where original venue was proper, which choice of law rules does a federal court apply?

Answer 21

When a diversity case is transferred within the federal system, the federal court applies the choice of law approach of the original (transferor court).

Question 22

What are the limits on a forum court’s choice of law analysis?

Answer 22

1. Constitution: imposes a limit only if a state’s law is chosen that has no significant contact with and/or legitimate interest in the litigation. Const is VERY WEAK here. (ex: Mass. randomly picks from deck of cards)
2. Statutory: If the forum state has a statute that directs a choice of law, then the forum court should apply that statute instead of the usual choice of law approach.

Question 23

Structure of choice of law answer:

Answer 23

1. Describe choice of law: “The issue presented is which state’s law will govern the outcome of this litigation. The governing law will be selected by the forum court using the (fill in applicable choice of law approach from facts).”
2. Describe choice of law approach: Vested rights (1st Restatement), interest analysis, or most significant relatship (2nd Restatement)
3. Apply COL approach

Question 24

Approach #1: Vested Rights (1st Rest.)

Answer 24

Apply law of place where relevant part of claims arose: “Under this approach the court will apply the law of that state mandated by the applicable vesting rule. That rule is selected according to the relevant substantive area of law.”

Question 25

Structure of Paragraph 3 when applying Vested Rights (1st Rest) approach

Answer 25

Sentence #1: Categorize the substantive area of law.
Sentence #2: State the applicable vesting rule.
Sentence #3: Apply the vesting rule to determine governing law.
Sentence #4: Apply the governing law to determine result.

Question 26

Example of Paragraph 3 under Vested Rights

Answer 26

This is a torts case. Therefore, the applicable vesting rule is the place of injury. Here, the injury occurred in Michigan and thus Michigan law applies. Under Michigan law, a non-paying passenger cannot recover against the driver, and so the claim is barred.

Question 27

Approach #2: Interest Analysis

Answer 27

“Under this approach the court will consider which states have a legitimate interest in the outcome of the litigation. The forum court will apply its own law as long as it has a legitimate interest. If the forum state has no legitimate interest, it will apply the law of another interested state.”

Question 28

Structure of Paragraph 3 when applying Interest Analysis approach

Answer 28

Step 1: Discuss which states have legitimate interests.
Step 2: Characterize the type of conflict.
False conflict: Only one state has a legitimate interest (ex: two NY citz in accident in Ontario–only NY really cares)
True conflict: Two (or more) states have a legitimate interest.
Step 3: Choose governing law based on type of conflict.
False conflict: Apply the law of the interested state.
True conflict: If the forum is interested, apply forum law (almost always the case)
Step 4: Apply the governing law to determine result

Question 29

Example of Paragraph 3 under Interest Analysis

Answer 29

“In this case, only Illinois has a legitimate interest. It is interested in permitting recovery to compensate its injured resident (the plaintiff). Michigan is not interested in applying its restriction against recovery simply because the accident occurred there. Rather, it would be interested in applying its restriction only if the defendant were a Michigan resident. But the defendant in this case is from Illinois, so Michigan is not interested. This case is therefore a false conflict, and Illinois law should apply. Under Illinois law, the plaintiff may recover.”

Question 30

Approach #3: Most significant relationship (2nd Rest)

Answer 30

“Under this approach the court will apply the law of the state which is most significantly related to the outcome of the litigation. To determine this, the court will consider connecting facts and policy principles.”

Question 31

Structure of Paragraph 3 when applying Most Significant Relationship approach

Answer 31

Step #1: Discuss connecting facts.
Step #2: Discuss policy principles.
Step #3: Choose governing law based on most significant relationship.
Step #4: Apply the governing law to determine result.

Question 32

Example of Paragraph 3 under Most Significant Relationship

Answer 32

“In this case, the factual connections are split. The accident occurred in Michigan, and the injury was sustained there. But both the plaintiff and the defendant are from Illinois. As a matter of policy, Illinois seems to have the greater interest because the law at issue is a loss distribution rule and both parties share an Illinois domicile. As a result, Illinois appears to have the most significant relationship to the dispute and its law should apply. Under Illinois law, the plaintiff may recover.”

Question 33

Which analyses depend on the substantive area of law (contracts, torts, etc.) of the claim?

Answer 33

Vested Rights and Most Significant Relationship, not Interest Analysis.

Question 34

First Restatement Vesting Rule for Torts

Answer 34

Governing law is place where injury occurred

Question 35

Second Restatement Considerations for Torts

Answer 35

Factual Connections: 
1. Place of injury.
2. Place of conduct causing injury.
3. Place where the parties are at home.
4. Place where the relationship, if any, is centered.
Policy Principles: 
1. Relevant policies of the forum state.
2. Relevant policies of other connected states.

Question 36

For torts, which governing law will almost always apply?

Answer 36

The place where the injury happened.

Question 37

For interest analysis and second restatement, what is the exception that applies in tort that might take COL away from state where injury happened?

Answer 37

Loss distribution issue + Common domicile state = Apply law of common domicile

Condition #1: The rule at issue is a loss distribution rule.
Examples include: 1. Loss limitations (damage caps)
2. Vicarious liability rules
3. Rules eliminating liability (immunity)
Condition #2: The parties in the case share a common domicile.

Question 38

Threshold issue for COL contracts cases:

Answer 38

Is there an enforceable COL provision? It’s enforceable if it is valid and express. This displaces COL analysis. If in doubt, find it invalid and do COL analysis.

Question 39

What might make a COL clause in a contract invalid (2)?

Answer 39

1. Law selected has NO REASONABLE RELATSHIP to contract.

2. Provision was included without true mutual assent.

Question 40

COL analysis for Vesting Rules in Contract

Answer 40

Rule #1: If the case is about formation, apply the law of the place of contracting.
Examples of formation issues:
1. Capacity
2. Contractual formalities
3. Consideration

Rule #2: If the case is about performance, apply the law of the place of performance.
Examples of performance issues:
1. Time, place and manner of performance
2. Excuses for nonperformance

Question 41

COL analysis for Second Restatement in Contract

Answer 41

Factual Connections:

1. Place of contracting.
2. Place of negotiations.
3. Place of performance.
4. Place where the parties are at home.

Policy Principles:

1. Relevant policies of the forum state.
2. Relevant policies of other connected states.
3. Reasonable expectations of the parties.

Question 42

COL for immovable real property

Answer 42

Apply law of where property is.

Question 43

COL for movable personal property

Answer 43

Rule #1: If the case involves an inter vivos transaction, apply the law of the situs at time of transaction.
Rule #2: If the case involves a matter relating to inheritance, apply the law of the Decedent’s Domicile at Date of Death.

Question 44

COL for Marriage

Answer 44

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

EXCEPT: When domiciliaries of one state temporarily relocate to
another state to perform a marriage that violates a prohibitory rule in their home state, the state of domicile will not recognize the marriage.

Question 45

COL for divorce.

Ex parte v. bilateral divorce

Answer 45

Forum applies its own divorce laws. one party must be domiciled in the state.

For ex parte, at least one spouse must have PJ in rendering state. For bilateral, both must. For ex parte, court can’t litigate ancillary rights except over property located in the state.

Question 46

COL for child legitimacy

Answer 46

Rule #1: Legitimacy of a child is governed by the law of the mother’s domicile at the time of the child’s birth.

Rule #2: The validity of subsequent acts of legitimation are governed by the law of the father’s domicile.

Question 47

Defenses to COL (issues that might change outcome) (2)

Answer 47

1. Public policy

2. Procedural rules

Question 48

Public policy defense

Answer 48

A forum court will not apply a law that is against its own fundamental public policy. Most applicable to first restatement. Does not apply to recognition of judgments!!!

Question 49

Procedural rules defense

Answer 49

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

Question 50

SOL: Procedural or substantive? + Exceptions (2)

Answer 50

Statutes of limitations have historically been viewed as
procedural for COL (for Erie, they’re treated as substantive)

Exception 1: Borrowing statutes direct a court to look at both the forum limitations period and the foreign limitations period (in cases where foreign law governs under a normal choice of law
analysis) and then to apply the shorter period

Exception 2: If the normal choice of law analysis leads to the application of a diff states statute that creates a substantive right, then apply the entire statute (including limitations)

Question 51

Domicile of children

Answer 51

Domicile of their parents (if divorce, domicile of custodial parent)

Question 52

Domicile of incompetent individuals

Answer 52

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

If an individual becomes incompetent after acquiring a domicile by choice: The individual retains the chosen domicile.