Conflicts of Law Flashcards
(18 cards)
Constitutional Limits – Due Process
Under the Due Process Clause of the 14th Amendment, a forum state may apply its own law to a case only if it has significant contact or a significant aggregation of contacts with the parties or the occurrence, such that applying its law is neither arbitrary nor fundamentally unfair.
Constitutional Limits – Full Faith & Credit
Under the U.S. Constitution, state courts must give full faith and credit to the final judgments of sister state courts, provided the rendering court had proper jurisdiction and the judgment was on the merits and is final.
Collateral Challenge to Jurisdiction
A party may collaterally challenge a judgment from another state on jurisdictional grounds only if the jurisdictional issue was not litigated or waived in the original action.
Statutory Limits – State & Federal
State law may establish certain choice-of-law rules, and federal statutes may preempt state jurisdiction when federal law exclusively governs the matter, such as in patent or bankruptcy cases.
Contractual Choice of Law
A contractual choice-of-law provision will generally be enforced if (1) the agreement is valid, (2) the clause applies to the issue in dispute, (3) the chosen law bears a reasonable relationship to the parties or transaction, and (4) the law chosen does not violate a strong public policy of the forum or another interested state.
Erie Doctrine – Federal Courts
Federal courts sitting in diversity must apply the substantive law and choice-of-law rules of the state in which they sit, including respecting enforceable choice-of-law provisions in contracts unless they lack a significant basis or violate public policy.
Vested Rights Approach
Under the vested rights approach, the forum applies the law of the state where the legal right vested, meaning the place where the last act giving rise to the cause of action occurred, based on characterizing the legal issue first.
Most Significant Relationship
Under the Second Restatement, the forum applies the law of the state with the most significant relationship to the parties and the issue, determined by considering connecting facts and seven policy principles.
Governmental Interest Approach
Under the governmental interest approach, the forum state presumes its own law applies unless another state has a greater interest in the outcome, in which case that state’s law may govern.
Wills and Estates
Law of the decedent’s domicile at death governs personal property transfers; the law of the situs governs real property transfers.
Torts
The default rule is to apply the law of the place of injury unless another state has a more significant relationship to the parties or the tort.
Contracts
Absent a stronger relationship to another state, specific rules apply: land = situs; personalty = place of delivery; life insurance = insured’s domicile; casualty insurance = location of risk; loans = place of repayment; suretyship = principal obligation; transportation = place of departure.
Corporations
Corporate issues such as formation, governance, and internal affairs are governed by the law of the state of incorporation.
Marriage Validity
A marriage valid where celebrated is valid everywhere unless it violates a prohibitory rule of a party’s domicile and they return and reestablish domicile there.
Divorce and Decrees
A state may grant a divorce if at least one spouse is domiciled there. Bilateral divorces get full faith and credit; ex parte divorces get it only for the dissolution, not property or custody matters.
Child Custody (UCCJEA)
Under the UCCJEA, a court may make an initial custody determination if it is the child’s home state. Other states must give full faith and credit to such custody determinations.
Legitimacy
The law of the domicile of the parent whose relationship to the child is in question governs issues of legitimacy.
Adoption
Adoption is governed by the law of the forum state where the proceeding is held.
