Conflicts of Law CP

Conflicts of Law

When is a court not required to enforce another state’s judgment pursuant to the Full Faith & Credit Clause?

Valid defenses: a court is not required to enforce another state’s judgment if either:

a. Lack jurisdiction

b. Not on the merits

c. No final judgment

If a prior case is dismissed for lack of subject matter jx, is it considered on the merits?

Not on the merits: prior judgment was not on the merits (IE it did not involve the substance of P’s claim)

When will a court not enforce another court’s judgment due to lack of JX?

Lack of JX requirements:

i. Prior court did not have proper JX over parties and/or subject matter; and

ii. Party challenging prior judgment did not litigate the JX issue in the prior court

What are valid defenses a court might rely on in refusing to enforce another state’s judgment?

Valid defenses: A court is not required to enforce another state’s judgment if either:

a. Lack of jurisdiction

b. Not on the merits

c. No final judgment

Under what authority must a state court judgment be recognized and enforced in other states?

Under the Full Faith & Credit Clause (FFCC) of the U.S. Constitution, a state court judgment must be recognized and enforced in other states.

What are the three general choice of law theories?

3 approaches: generally states use on of the following COL tests:

1. Vested Rights Approach of the First Restatement

2. Most Significant Relationship Approach of the Second Restatement

3. Governmental Interest Approach

What approach must a federal court exercising diversity JX over non-federal claims apply?

Diversity cases: a federal court exercising diversity JX over non-federal claims must apply the COL approach of the state which it sits

What factors would a cot in determining whether to recognize a foreign judgment under comity principles?

Recognition of Foreign Judgments:

Factors: in choosing whether to recognize a foreign judgment, courts look at:

1. Did the foreign court have JX?; and

2. Were fair procedures used in adjudicating the case?

To what extent does the Full Faith & Credit Clause apply to foreign judgments?

Recognition of foreign judgments: Judgments of foreign nations are not given full faith and credit, but may be recognized on comity principles (IE voluntary recognition)

What are the factors in choosing to recognize a foreign judgment?

Factors in choosing whether to recognize a foreign judgment, courts look at:

1. Did the foreign court have JX?; and

2. Were fair procedures used in adjudicating the case?

To what extent is the foreign judgment enforced if recognized?

If foreign judgment is recognized, it is enforced the same as another state’s valid judgment

In a property dispute, which forum’s laws will usually apply under the Vested Rights Approach?

-Property: for real property, court applies law of the forum where property is located

-Tangible Property: Court applies law of forum where property was located at the time of the relevant transaction

In a contract litigation, what forum’s laws will likely be applied under the Vested Rights Approach?

Contracts: Court applies laws of the forum where the K was formed unless the dispute involves performance

• If performance is a issue, court will apply law of forum in which performance was due

Under the Vested Rights Approach, in a tort claim, what forum’s laws will usually be applied?

Torts: court applies law of the forum where the injury occurred (specifically where the last event giving rise to liability occurred).

Under the Vested Rights Approach, where do parties’ rights most often vest?

Last Act: Most often, rights vest in the state where the last act or event occurred that gave rise to the rights being asserted in the lawsuit

What law does a court apply under the First Restatement’s Vested Right’s Approach?

Under the First Restatement’s Vested Rights Approach, the court applies the law of the forum where the act occurred or the relationship that gave rise to the lawsuit developed.

Under the Most Significant Relationship Approach, what do courts look at in a contract litigation to determine choice of law issues?

Contracts: Courts look at place of contracting, negotiation, performance, location of subject matter of K domicile/residence/place of incorporation of parites

• Generally, if place of negotiation and performance are the same, that forum’s laws will be applied

In a torts case where the Most Significant Relationship Approach is followed, what will courts look at to determine which forum’s laws apply?

Torts: Courts look at place of injury and conduct that caused the injury (most significant factor), as well as residence/domicile/place of incorporation of parties

What factors does a court consider under the Most Significant Relationship Approach when determining which forum has the most significant relationship?

Factors: In determining which forum has the most significant relationship, courts consider the following general factors:

1. Relevant policies of the forum and other interested JX;

2. Relevant policies underlying the substantive filed of law;

3. Ease of applying the law to be applied;

4. Whether application of a given law will aid certainty, uniformity, and predictability;

5. The needs of the interstate or international system; and

6. The justified expectations of the parties

What forum’s laws will a court apply under the Most Significant Relationship Approach?

Under the Second Restatement’s Most Significant Relationship Approach, the court applies the law of the forum that has the most significant relationship to the issue at hand

Under the Government Interest Approach. can a court choose to apply a modified version of either forum’s laws?

Court may then apply the other forum’s laws, its forum’s laws, or a modified version of either

What is the process a court uses to determine which forum’s laws should apply under the Government Interest Approach?

How It Works:

• Courts start with the presumption that its forum’s law should apply

• The court may also:

  1. Examine the policies behind its laws and those of the other forum involved

  2. If another forum has an interest, court will reconsider its forum’s policies to consider if it has a legitimate interest in applying its own law

What presumption do courts following the Government Interest Approach start ?

Courts start with the presumption that its forum’s law should apply

What do courts primarily focus on in determining conflict of laws under the Government Interest Approach?

Under the Governmental Interest Approach (AKA “Interest Analysis Approach”), the court analyzes policies behind the conflicting laws in each forum and how those policies would be furthered by application to the case at hand

To what extent must an express choice of law provision in a K lack any relationship to the parties for a court to refuse to apply the provision?

No substantial relationship: contract parties’ chosen forum bears no substantial relationship to the parties or the transaction, such that there is no reasonable basis for the choice (look for bad faith)

Under what conditions might a court refuse to apply an express choice of law provision in a K as contrary to public policy?

Contrary to public policy: Applying the law of the K-designated forum would conflict with a fundamental policy of a different forum that has a materially greater interest than designated forum in determining the particular issue

In what situations would a court not apply or honor an express choice of law provision of a K?

Exceptions: Choice of law provision in the K will not be applied or honored where:

• Contrary to public policy

• No substantial relationship

• Lack Consent

In a contract litigation brought in a forum applies the Most Significant Relationship test, will a court generally recognize an express choice of law provision in the K at issue?

Express choice of law provision in Ks are generally adhered to regardless of the COL approach that would be applied by a court

To what extent, if any, can a court modify another state child custody order?

Court making decree retains JX and no other state can modify the determination unless the original court had no significant connection with the child or parties in dispute

When does a court generally have JX to make a child custody determination?

Generally court has JX to make a custody determination if it is the child’s home state; all other states must give that determination full faith and credit

What is an ex parte divorce?

Ex parte divorce: Divorce based on domicile of only one spouse.

• Enforcing court may examine questions of domicile in determining whether the full faith and credit should be given to the issued decree

• Rebuttable presumption exists that spouse domicile is bona fide

Under what conditions will a court give full faith and credit to a divorce decree issued in another state?

Courts will give full faith and credit to divorce decrees issued in another state if:

1. The decree is valid in the other state; and

2. The other state had proper JX

   • For the divorce only, satisfied if one of the spouses is domiciled in the state that granted that divorce.

   • Personal JX over the absent spouse needed for property division, alimony