RELATIONS AMONG STATES and STATE ACTION

FULL FAITH AND CREDIT

A court must give out-of-state judgments effect if:

• The court rendering judgment had jurisdiction over the parties and the subject matter

• The judgment was on the merits (i.e., addressed the substantive elements of a claim or defense) and

• The judgment was final (i.e., settled the rights of the parties and disposed of all issues).

General State Action

• The Constitution generally protects against wrongful conduct by the government—not private parties.

• State action, which encompasses action by federal and local governments, is therefore a prerequisite to triggering constitutional protections

State Action

State action occurs when a private person carries on a traditional government function, which is an activity that is traditionally performed exclusively by the state (e.g., running primary elections, running a company town).

Mutual Sufficient Contacts

State action may exist if there are sufficient mutual contacts between the conduct of a private entity and the government such that the government is pervasively entwined with the entity and:

• Constitutional standards should apply to the private entity y A mutual benefit results (e.g., joint venture) or

• The state creates a private entity by special law to further governmental objectives and retains permanent control of the entity.

Mere licensing or regulation of a private party is not state action. The state must affirmatively facilitate, encourage, or authorize the activity