Conflict of Laws

Question 1

Recognition of Judgments Two-Part Analysis

Answer 1

Judgement rendered by court in rendering jurisdiction
o Rendering -> Judgment was originally entered

Party wants judgment recognized by court in recognizing jurisdiction
o Recognizing -> where recognition is being sought

• Was the rendering jurisdiction a sister state or a foreign country?
• Is the judgment entitled to full faith and credit or comity

Question 2

Sister State Judgment Analysis

Answer 2

Step 1 -> Are the requirements of full faith and credit satisfied?

Three Requirements
1. Jurisdiction (Both personal and subject matter)
o Rule -> The rendering state must have had jurisdiction over the parties (that is personal jurisdiction) and jurisdiction over the subject matter.
 Exception -> Cannot challenge jurisdiction if issue of jurisdiction was fully and fairly litigated

2. Judgment must have been on the merits
   o Rule -> The judgment entered by the rendering state must have been on the merits.
    Default judgments on the merits!
    Consent judgment entered after settlement on the merits!
   * Case dismissed because of Statute of limitation, Lack of jurisdiction, misjoinder, improper venue = NOT ON MERITS
3. Judgment must be final
   o Rule -> The judgment entered by the rendering court must be a final judgment
    Judgment on appeals in rendering jurisdiction is not final!

Step 2 -> Are there any Defenses to Full Faith and Credit
Valid Defenses
Penal Judgments are not enforced
o Judgment that punishes an offense against the public
 Plaintiff in the suit that led to the judgment was the state

Judgment based on extrinsic fraud not enforced
o Fraud that could not be corrected during proceedings
 Ex -> Judge subject to bribe

Invalid Defenses
- Public policy
- Misapplication of law

Question 3

Foreign Country Judgment Analysis

Answer 3

Rule -> Under principles of comity, a recognizing court will exercise discretion to decide whether the foreign judgment should be recognized.

Recognition of Foreign Judgments – Comity
- Did the foreign court have jurisdiction?
- Were the foreign court procedures fair?

Question 4

Identifying Choice of Law Problem

Answer 4

• Lawsuit involves factual connections with multiple states
• States have different laws leading to different results

Question 5

Which State’s Law Governs

Answer 5

Rule -> Law selected by forum courts under its choice of law approach!

Exceptions in Diversity Cases
o Federal court applies choice of law approach of state in which it sits
o In case transferred in federal system, applies choice of law approach of original transferor court

Question 6

Constitutional Restriction on Choice of Law

Answer 6

Only if no significant contact or no legitimate interest

Rule -> The Constitution imposes a limit only if a state’s law is chosen that has no significant contact or no legitimate interest in the litigation

Question 7

Statutory Restriction on Choice of Law

Answer 7

Use statute of forum state if it dictates choice of law

Rule -> 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 8

Structure of Choice of Law Answer

Answer 8

1. Describe choice of law
   o SAY THIS PARAGRAPH BELOW
    The issue presented is which states law will govern. The governing law will be selected by the forum court using the “fill in applicable choice of law approach.” (It will be given to you as part of the question)
2. Describe choice of law approach
   o Vested rights
   o Interest Analysis (Governmental Interest)
   o Most significant relationship
3. Apply choice of law approach to facts of case

Question 9

Vested Rights Approached (First Restatement)

Answer 9

Paragraph 1
- The issue presented is which states law will govern. The governing law will be selected by the forum court using the vested rights approach.

Paragraph 2
- Under the Vested Rights 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.

Structure of Paragraph 3 for Vested Rights Approach
o Categorize substantive area of law
o State applicable vesting rule
o Apply vesting rule to determine applicable law
o Apply governing law to determine result

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

Question 10

Interest Analysis Approach

Answer 10

Paragraph 1
- The issue presented is which states law will govern. The governing law will be selected by the forum court using the interest analysis approach.

Paragraph 2
- 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.

Paragraph 3
Step 1 -> Discuss which states have legitimate interests
Step 2 -> Characterize the type of conflict
 False conflict -> only one state has a legitimate interest
 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
Step 4 -> Apply the governing law to determine result

Question 11

Most Significant Relationship Approach (Second Restatement)

Answer 11

Paragraph 1
- The issue presented is which states law will govern. The governing law will be selected by the forum court using the most significant relationship approach.

Paragraph 2
- 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.

Paragraph 3
o Discuss connecting facts
o Discuss policy principles
o Choose governing law based on most significant relationship
o Apply governing law to determine result

Question 12

Applications to Specific Substantive Areas

Answer 12

**Interest analysis is not sensitive to the substantive area at issue

Question 13

First Restatement Vesting Rule for Torts

Answer 13

Governing law is law where injury occurred

Question 14

Second Restatement Vesting Rule for Torts

Answer 14

Factual Connections
o Place of injury
o Place of conduct causing injury
o Place where the parties are at home
o Place where the relationship, if any, is centered

Policy Principles
o Relevant policies of the forum state
o Relevant policies of other connected states

Question 15

General rule for all three approaches - TORTS

Answer 15

For all three approaches, the govern law will almost always be the law of the place of the injury

Exception -> When law of place of injury will not be applied if the following 2 are present! (Interest analysis and second restatement)
o Rule at issue is loss distribution rule
 Loss limitations
 Vicarious liability rules
 Immunity rules eliminating liability
o Parties share common domicile
**When both conditions are satisfied, apply law of common domicile

Question 16

Threshold Issue for Contracts

Answer 16

Is there an enforceable choice of law provision
o Rule -> A choice of law provision will be enforced if it is valid and express
o Displaces regular choice of law analysis
o If in doubt, find the provision invalid and show off your knowledge!

Reasons to find choice of law provision invalid
o No reasonable relationship to the contract
o Included without mutual assent

Question 17

First Restatement Vesting Rules - Contracts

Answer 17

Formation – apply law of place where contract was executed
o Capacity
o Contract formalities
o Consideration

Performance – apply law of place where contract to be performed
o Time, manner, place of performance
o Excuses for nonperformance

Question 18

Second Restatement Connecting Facts

Answer 18

Factual connections
o Place of contracting
o Place of negotiation
o Place of performance
o Where the parties at home

Policy principles
o Policy of forum state
o Policies of other connected states
o Reasonable expectations of the parties

Question 19

Immovable (Real) Property

Answer 19

Rule -> Apply the law of the situs

Question 20

Movable Property - All 3 approaches

Answer 20

Inter Vivos
Rule -> If the case involves an inter vivos transaction, you apply the law of the situs at the time of transaction

Inheritance
Rule -> If the case involves a matter relating to inheritance, you apply the law of the decedent’s domicile at the date of death

Question 21

Marriage - All 3 approaches

Answer 21

Rule -> If marriage is valid where performed, it will be recognized everywhere
o Exception -> Temporary move to avoid rule of domicile

Question 22

Divorce - All 3 approaches

Answer 22

Rule -> the forum will apply its own divorce laws

Question 23

Legitimacy - All 3 approaches

Answer 23

Rule -> Legitimacy of a child is governed by the law of the mother’s domicile at the time of the child’s birth

Rule -> The validity of subsequent acts of legitimation concerning paternity are governed by the law of the father’s domicile

Question 24

Defenses to Choice of Law - Public Policy

Answer 24

Rule -> Forum court will not apply a law that is against its own fundamental public policy
o Remember, this rule does not apply to recognition of judgments

Question 25

Defenses to Choice of Law - Procedural Rules

Answer 25

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

Question 26

Defenses to Choice of Law - Statute of Limitations Most Tested Issue

Answer 26

Treat statute of limitations as procedural for choice of law purposes!

Exception #1 – Borrowing Statutes
- Direct a court to look at both the forum limitations period and the foreign limitations period and then to typically apply the shorter period

Exception #2 – Limitations that Condition Substantive Right
- If statute creates right to recover and limitation period, apply statue’s limitation period

Question 27

Domicile by Choice

Answer 27

Rule -> An individual with domicile capacity acquires a domicile when two conditions are satisfied: (1) physical presence, and (2) intent to remain indefinitely or permanently.

Question 28

Domicile by operation of law

Answer 28

Rule -> An individual who lacks domicile capacity is assigned one by law.

Question 29

Children

Answer 29

Rule -> Newborns are assigned the domicile of their parents

Rule -> In cases of divorce, children are assigned the domicile of their custodial parent

Question 30

Incompetents

Answer 30

Rule -> AN individual who is mentally incompetent is assigned the domicile of their parents

Rule -> If an individual becomes incompetent after acquiring a domicile by choice, they retain the chosen domicile