PENNSYLVANIA CONFLICT OF LAWS
PENNSYLVANIA CONFLICT OF LAWS PROFESSOR KEVIN P. OATES DREXEL UNIVERSITY THOMAS R. KLINE SCHOOL OF LAW CHAPTER 1:
FULL FAITH AND CREDIT FOR JUDGMENTS
Three Main Topics in Conflict of Laws: •
Full faith and credit for judgments
•
Domicile
•
Choice of law
A. Full Faith and Credit for Judgments •
The U.S. Constitution’s Full Faith and Credit Clause provides that each state will recognize the legal records and proceedings from other states.
•
Full faith and credit for judgment refers to recognition of the judgment in a second state Example 1:
Ohio (Forum 1) has issued a judgment. In an enforcement of
judgment action filed in Pennsylvania (Forum 2), Pennsylvania must give full faith and credit to the______________________.
1. Requirements o
In order for a judgment to be given Full Faith and Credit, it must be:
A ______________________ judgment (no appeals outstanding); On the ___________________________ (not resolved on procedural basis, lack of venue, or statute of limitations); and Issued by a court with ________________________________.
2. Defenses to Full Faith and Credit for Judgments a. Sufficient defenses (need not be enforced)
___________________________ judgments (criminal) Judgment based on ________________________________
b. Insufficient defenses (must be enforced)
_______________________ judgments Judgments contrary to ________________________ policy of enforcing state Example 2:
I live in Nevada. I enter into a gaming contract with someone in
Nevada in accordance with Nevada law. I fail to pay under the contract and he obtains a final judgment against me in Nevada. I have already moved back to
Pennsylvania. He seeks to enforce the judgment against me in Pennsylvania. I cannot use public policy to prevent Pennsylvania from enforcing the judgment against me. Note 1: The public policy exception to Full Faith and Credit might apply to decisions that are not final judgments.
Judgments based on a _________________________ of fact or law Example 3:
If the Ohio judgment was based on a mistake, Pennsylvania must
nevertheless enforce the final judgment because Full Faith and Credit applies. The mistake is remedied by an appeal in Ohio.
3. Res Judicata (Claim Preclusion) o o
o
A final judgment on the merits by a court with jurisdiction is entitled to same effect in other states as it would have in the original or home state that decided the judgment. Merger: If plaintiff obtained the judgment, the plaintiff’s cause of action ____________________________ into the judgment and the defendant is prohibited from relitigating the merits. Bar: If defendant obtained the judgment, the ____________________________ is barred from filing another suit for that same cause of action in another state.
4. Collateral Estoppel (Issue Preclusion) o o
Collateral estoppel eliminates the opportunity for parties to relitigate the issues in a subsequent suit. Collateral estoppel applies when:
Substantive issue of the case at hand was previously ___________________ in the case. Issue was _______________________________ to supporting the judgment in the initial proceeding Parties claiming collateral estoppel were either a _____________________ to the original action or were in privity with a party to the original action (full and fair opportunity).
5. Enforcement o o
Judgments determined to be entitled to full faith and credit must be enforced. Under the Effects Clause, the state that is recognizing the judgment may make the determination as to the enforcement mechanism. Example 4:
Pennsylvania has a homestead exception limiting the
enforcement of a judgment against the defendant's primary residence. Pennsylvania must recognize the Nevada judgment under Full Faith and Credit, but will comply with Pennsylvania procedures in enforcing the judgment.
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6. Federal Courts and Administrative Tribunal Judgments o
The Full Faith and Credit Clause of the United States Constitution generally extends to federal cases and __________________________ adjudications.
B. Recognition of Judgments from Foreign Countries •
Not subject to Full Faith and Credit Note 2: In Conflict of Laws, "foreign judgment" is sometimes used to refer to a judgment from a different state. Look for whether the judgment comes from another state or comes from another country (Mexico, Canada, etc.).
1. Comity o o
Comity is the discretionary recognition of a judgment from a foreign country. United States courts are not required to, but may recognize foreign judgments.
2. Uniform Foreign Money Judgment Recognition Act o o o
Pennsylvania, among other states, has adopted the Uniform Foreign Money Judgment Recognition Act. If a foreign judgment grants or denies a specific lump sum of money, Pennsylvania will give the judgment full faith and credit. It does not cover cases involving taxes, penal judgments, or cases involving money related to alimony or child support.
CHAPTER 2:
DIVORCE JUDGMENTS & DOMICILE
A. Recognition of Divorce Judgments •
Divorce judgments from other states are entitled to full faith and credit as long as: 1. Consent/Bilateral Divorce o
Consent divorce (also known as a bilateral divorce) is a divorce action in which:
o o
Court has personal jurisdiction over _____________________ parties, and At least one party lives in the state
Entitled to full faith and credit: Dissolution of the marriage as well as all related judgments Child custody, alimony, property division, child support
2. Ex Parte Divorce o
Ex parte divorce is a divorce action where the court has personal jurisdiction over only _________________ of the parties. Example 5:
My spouse and I were married in Pennsylvania and continue to
live there. I decide to move to Nevada but my spouse stays in Pennsylvania. I can seek an ex parte divorce in Nevada even though Nevada does not have
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personal jurisdiction over my spouse. However, Nevada does not have jurisdiction over property division or child custody.
o
Entitled to full faith and credit: Divorce decree only (dissolution of marriage)
3. Estoppel Against Collateral Attack o
Anyone who has an interest in the case (a child) may collaterally attack the validity of a state’s decree. Example 6:
Nevada issues a divorce judgment. A child to the marriage can
collaterally attack the Nevada decree by challenging its enforcement in another state.
o
However, when the third party is in privity with one of the parties to the divorce, the third party may be _____________________________ from making such an attack based on that party’s relationship to the initial proceedings (full and fair opportunity in the initial proceeding).
4. Child Custody o o o
There is a reciprocal statute in all 50 states known as the Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA) that governs child custody. Under the UCCJEA, a court that makes an initial custody decision is entitled to full faith and credit in every other state. These custody decisions are not modifiable unless the original court no longer has _____________________________________ to the child or parents.
5. Property and Alimony o o
_____________________________ divorce decrees that are related to property and alimony: Entitled to full faith and credit. ________________________ divorce decrees that relate to property and alimony: Not entitled to full faith and credit
6. Remarriage o
As long as the divorce is ___________________ in the issuing state, the parties are free to remarry in another state.
7. Divorce Judgments from Foreign Countries o o
The court will generally recognize foreign divorce judgments under ___________________, as long as domicile is met. As to other divorce-related agreements, such as alimony, property, and child custody, the ruling of the other court will generally be followed as if the judgment came from another state.
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B. Domicile •
Domicile is a person’s legal residence. 1. Domicile of Individuals o o
Individuals can have only ___________________ domicile. Domicile can be acquired either by choice or operation of law.
a. Factors to Determine Domicile
The court will look at: ______________________________________ and _______________________. •
Where a person sleeps, votes, works, lives, etc.
•
Where a person declares himself to be domiciled
Physical presence trumps intent where the two conflict.
b. Domicile by Operation of Law
This occurs when an individual does not have the legal __________________________ to choose his domicile, such as with minors and incompetents.
1) Infants/Minors •
Infants of married parents who live together are domiciled where their _______________________ is domiciled.
•
If the father has died, domicile is where the ________________________ lives.
•
If the parents are separated or divorced, domicile is the place where the ____________________________ parent lives.
2) Incompetents •
One who lacks the mental legal capacity to choose a domicile will retain the domicile of his/her parents (father, then mother).
•
If the person once had legal capacity, chose a domicile, and then lost legal capacity, the person will retain his or her domicile.
2. Domicile of Corporations
CHAPTER 3:
A corporation’s domicile is always the state where it is _______________________.
CHOICE OF LAW
A. General Overview •
The forum court must determine which state’s laws should apply Example 7:
You drive from Pennsylvania to Florida. You are in a car accident
in Georgia with driver from Ohio.
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Civil Procedure issue—State in which Pennsylvania plaintiff can sue: Ohio, Georgia, maybe in Pennsylvania if sufficient contacts Conflict of Law issue—Law that applies to the issues in the case: Georgia has no damage cap, Pennsylvania has a $50,000 damage cap, Ohio has a $250,000 damage cap.
•
There is no constitutional directive requiring application of a specific state’s law. o o
•
Courts approach choice of law questions using three different approaches: o o o
•
Vertical conflict: Federal law governs under the Supremacy Clause Horizontal conflict: Courts have a choice of law
Vested _____________________ approach = First Restatement approach Most _________________________________ relationship approach = Second Restatement approach Government __________________________ approach
Pennsylvania favors a ______________________ approach o
Most significant relationship & government interest.
B. Vested Rights Approach (First Restatement) •
Territoriality: Each state is a coequal sovereign that has power within its own borders.
•
Based on where the right that is being sued upon vests. o o
Contract: Where was the contract completed? (Negotiated and signed) Tort: Where was the injury? Example 8:
Negligence: The plaintiff must prove duty, breach, causation, and
injury (or damages). The injury is the last event necessary in order to sue on the tort. Example 9:
I’m injured in a car accident in Ohio. My rights vest in Ohio under
the Vested Rights Approach
o
Property: Where the land is located Note 3: It is important to note that where a right vests differs depending on the substantive area of law (contract, tort, etc.).
C. Most Significant Relationship Approach (Second Restatement) •
Apply the law of the state with the most significant relationship to the issue in question.
•
Which state has the most significant relationship: the court considers seven policy principles: 1. The needs of the _______________________________ or international system o
Usually not a factor in most cases
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2. The relevant policies of the ______________________ o
The state hearing the case
3. Policies of any other interested states Example 10: The Pennsylvania resident is in a car accident with an Ohio resident in Georgia. The PA plaintiff brings suit in Georgia. Georgia has no damage cap because GA’s policy is to give plaintiffs adequate damages. The GA court (the forum court) would also consider why the other interested states have damage caps. Ohio has a damage cap of $250,000 because it wants to protect Ohio defendants from excess verdicts.
4. The ______________________ expectations o
This is generally a factor for contracts (most people do not have expectations for torts)
5. Policies underlying the _________________________________ areas of law Example 11: Contracts: the law prefers enforcement of contracts Example 12: Torts: the law exists to compensate the victim and punish or deter the defendant
6. Certainty, ______________________________, and uniformity 7. Ease of future _________________________________ D. Government Interest Approach •
Presumption: Forum law will apply UNLESS some other law applies
•
A party may request another state’s law o
The party must explain the law and policies and advocate for the other state’s law
1. True conflict o
More than one state is interested, there is a true conflict Example 13: PA is interested because the plaintiff is a domiciliary of PA Example 14: Ohio is interested because the defendant is a domiciliary of OH Example 15: Georgia might not be interested. It might be interested in the safety of its highways.
o
The forum state will review its own policies and the policies of other interested states to determine which law should apply
If the forum is disinterested, it will apply the law that is most like the forum. If the forum is interested, it will apply forum law.
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If the conflict cannot be resolved (the forum cannot find a reason to choose one state over the other) the court would apply forum law. o If the forum is disinterested, the case might be able to dismiss for forum non conveniens
o
If forum non conveniens is not available, the forum will choose the law of the most interested state, or the law that is the most like the forum's law.
2. False conflict •
If no state has an interest, there is no conflict
•
Default to ______________ law 3. Specific issues
•
In marriage cases, the law of the place where the marriage ceremony took place applies (celebration rule).
•
In corporate cases, the law of the state where the company is _________________________ applies.
CHAPTER 4:
PENNSYLVANIA CHOICE OF LAW
A. Pennsylvania-Specific Approach •
Pennsylvania courts use a ____________________ approach of the principles set out in the most significant relationship and government interest approaches to determine choice of law.
•
Emphasizes the number AND quality of contacts to the issue
•
The most significant relationship portion of the analysis requires characterization of the claim Example 16: A contract for the sale of land may be characterized as either a contract or a real property issue. Example 17: An employee sues their employer for workplace injury may be characterized as a tort or contract issue. Note 4: The seven principles apply regardless of characterization. Additionally, each type of claim requires consideration of certain contacts.
B. Torts •
In addition to the seven most significant relationship principles, consider these contacts: o o
Where the ________________________ occurred (generally controlling). Where the _________________________ that caused the injury occurred. Note 5: The injury and the conduct causing the injury often occur in the same state. However, there are scenarios where these two contacts can differ. Example 18: You are hunting in Pennsylvania. You negligently fire a bullet that travels across the border and injures someone in Ohio.
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o o
Where the ________________________ are domiciled, reside, or are incorporated. Where the ______________________________ between the parties is centered. Exam Tip 1: Discuss all of the principles and contacts even if one seems more important than the others.
1. Existence of cause of action o o
Sometimes the biggest issue is whether the court should even recognize the cause of action because one state recognizes the claim and the other does not. Under the Most Significant Relationship approach, the law of the jurisdiction that has the most significant relationship to the ________________ and the ________________ determines whether there is a cause of action. Note 6: In cases of vicarious liability, the court will also look to the state that has the most significant relationship to the parties and the occurrence of the tort.
o
Under the Government Interest approach, the forum state’s law controls as long as that state has a legitimate interest.
2. Damages o o o
Most Significant Relationship approach: Law of the state having the most significant relationship to the transaction governs. Governmental Interest approach: State of the plaintiff’s _______________________ has a legitimate interest in having its laws of damages applied. Pennsylvania Hybrid approach: Discuss BOTH approaches
C. Contracts 1. Express Choice of Law Provision o
The choice-of-law provision will govern unless:
It is contrary to ______________________ policy; There is no reasonable _____________________ for the parties’ choice; or Example 19: A PA resident contracts with an OH resident to build a house in OH. The parties choose Hawaii law to govern the contract. Hawaii has no interest in this transaction so there is no reasonable basis for this choice.
There was __________________ or mistake and true consent was not given.
2. No Express Choice of Law Provision o o
If there is no express choice of law provision or the provision is unenforceable, the forum court will engage in choice of law analysis In Pennsylvania, the hybrid approach governs
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3. Most Significant Relationship a. In General
Seven policy principles are considered, in addition to the following contacts: •
The place of the ___________________________, negotiation, or performance.
•
Where the _______________________ matter of the contract is located
•
Where the parties are ___________________________, reside, or are incorporated.
b. Specific Kinds of Contracts o
Land contracts are controlled by the law of the place where the ____________________ is located. Personalty contracts are controlled by the law of the place of _________________________. Life insurance contracts are controlled by the law of the place where the insured is ___________________________. Casualty insurance contracts are controlled by the law of the location of the insured risk. Loans are controlled by the law of the place where repayment is required. Suretyship contracts are controlled by the law governing the principle obligation. Transportation contracts are controlled by the law of the place of _________________.
Remember: The Most Significant Relationship still prevails. The rules relating to these specific kinds of contracts are subject other factors showing a more significant relationship to another state.
4. Governmental Interest o o
This approach does not change based on substantive areas of law. This approach does rely on which state is interested Exam Tip 2: Discuss BOTH approaches.
CHAPTER 5:
PENNSYLVANIA CHOICE OF LAW (CONT'D)
A. Property 1. Personal Property o o
Most Significant Relationship (Second Restatement): Law of the situs (location of property) at the time the relevant transaction took place. If the property is intangible, then it is generally the law of the “situs of debt” that is used, such as the domicile of the _________________.
If another state has a more significant relationship (under the seven principles), the forum will apply that state's law instead of the domicile of the debtor.
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2. Real Property o o
Most Significant Relationship (Second Restatement): Law of the ______________________ of the real property Governmental Interest: The state where the land is located is interested
3. Trusts o
With trusts, the law of the state where the trust is _____________________ applies.
4. Inheritance (Either by will or intestacy) o o
Transfer of real property: Law of the _______________________ of the land Transfer of personal property: Law of the deceased’s __________________________ at the time of death governs.
B. Family Law o o o
Celebration Rule: Marriages are valid everywhere if they are valid where __________________. Anullment: Determined by the law of the state where celebrated. Same-sex marriage
Same-sex couples may now marry in all states, and all states must recognize a same-sex marriage legally entered into in another state. Pennsylvania will also give full faith and credit to same-sex marriages celebrated in other states. So long as the same-sex marriage was valid in that state, Pennsylvania will recognize that marriage.
C. Arguments Against Application of Foreign Law 1. Application of Foreign Law •
Three arguments can be made against the application of foreign law: o
The law is ___________________________________.
The forum applies its own procedural rules (evidence, filing requirements) The forum still determines whether to apply another state's substantive law Note 7: A law that affects the end result of the case (outcome determinative) is more likely to be substantive. Damage caps have been determined to be substantive.
o
The law is against the___________________________ of the forum. Note 8: Under the governmental interest approach, public policy is considered in the main analysis, not as an exception.
o
The law is a ________________________ law.
The Second Restatement prohibits a state from applying foreign criminal laws.
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However, civil punishments can be applied, such as a wrongful death action.
2. Application of State or Federal Law a. Applying federal law in state courts
Areas of the law governed exclusively by federal courts include: •
Federal _____________________________,
•
Bankruptcy, and
•
Patents
States have the power to _____________________________ federal law outside of these three areas, and are obligated to do so unless they have a valid reason for refusal
b. Applying state law in federal courts based on Diversity Jurisdiction
Erie Doctrine: In diversity jurisdiction cases, federal district courts must apply the substantive law of the state in which it is physically located, including choice-of-law. Federal courts apply federal procedural rules Outcome determinative: If a law affects the outcome of the case, it is likely _____________________________ If a federal rule of procedure applies, it is likely _____________________________
3. Proof of Foreign Law o
Courts can take judicial notice of sister state, federal, and foreign laws and treat them as law rather than fact.
GOOD LUCK ON THE PENNSYLVANIA BAR EXAM!
[END OF HANDOUT]
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FULL FAITH AND CREDIT FOR JUDGMENTS
Three Main Topics in Conflict of Laws: •
Full faith and credit for judgments
•
Domicile
•
Choice of law
A. Full Faith and Credit for Judgments •
The U.S. Constitution’s Full Faith and Credit Clause provides that each state will recognize the legal records and proceedings from other states.
•
Full faith and credit for judgment refers to recognition of the judgment in a second state Example 1:
Ohio (Forum 1) has issued a judgment. In an enforcement of
judgment action filed in Pennsylvania (Forum 2), Pennsylvania must give full faith and credit to the______________________.
1. Requirements o
In order for a judgment to be given Full Faith and Credit, it must be:
A ______________________ judgment (no appeals outstanding); On the ___________________________ (not resolved on procedural basis, lack of venue, or statute of limitations); and Issued by a court with ________________________________.
2. Defenses to Full Faith and Credit for Judgments a. Sufficient defenses (need not be enforced)
___________________________ judgments (criminal) Judgment based on ________________________________
b. Insufficient defenses (must be enforced)
_______________________ judgments Judgments contrary to ________________________ policy of enforcing state Example 2:
I live in Nevada. I enter into a gaming contract with someone in
Nevada in accordance with Nevada law. I fail to pay under the contract and he obtains a final judgment against me in Nevada. I have already moved back to
Pennsylvania. He seeks to enforce the judgment against me in Pennsylvania. I cannot use public policy to prevent Pennsylvania from enforcing the judgment against me. Note 1: The public policy exception to Full Faith and Credit might apply to decisions that are not final judgments.
Judgments based on a _________________________ of fact or law Example 3:
If the Ohio judgment was based on a mistake, Pennsylvania must
nevertheless enforce the final judgment because Full Faith and Credit applies. The mistake is remedied by an appeal in Ohio.
3. Res Judicata (Claim Preclusion) o o
o
A final judgment on the merits by a court with jurisdiction is entitled to same effect in other states as it would have in the original or home state that decided the judgment. Merger: If plaintiff obtained the judgment, the plaintiff’s cause of action ____________________________ into the judgment and the defendant is prohibited from relitigating the merits. Bar: If defendant obtained the judgment, the ____________________________ is barred from filing another suit for that same cause of action in another state.
4. Collateral Estoppel (Issue Preclusion) o o
Collateral estoppel eliminates the opportunity for parties to relitigate the issues in a subsequent suit. Collateral estoppel applies when:
Substantive issue of the case at hand was previously ___________________ in the case. Issue was _______________________________ to supporting the judgment in the initial proceeding Parties claiming collateral estoppel were either a _____________________ to the original action or were in privity with a party to the original action (full and fair opportunity).
5. Enforcement o o
Judgments determined to be entitled to full faith and credit must be enforced. Under the Effects Clause, the state that is recognizing the judgment may make the determination as to the enforcement mechanism. Example 4:
Pennsylvania has a homestead exception limiting the
enforcement of a judgment against the defendant's primary residence. Pennsylvania must recognize the Nevada judgment under Full Faith and Credit, but will comply with Pennsylvania procedures in enforcing the judgment.
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6. Federal Courts and Administrative Tribunal Judgments o
The Full Faith and Credit Clause of the United States Constitution generally extends to federal cases and __________________________ adjudications.
B. Recognition of Judgments from Foreign Countries •
Not subject to Full Faith and Credit Note 2: In Conflict of Laws, "foreign judgment" is sometimes used to refer to a judgment from a different state. Look for whether the judgment comes from another state or comes from another country (Mexico, Canada, etc.).
1. Comity o o
Comity is the discretionary recognition of a judgment from a foreign country. United States courts are not required to, but may recognize foreign judgments.
2. Uniform Foreign Money Judgment Recognition Act o o o
Pennsylvania, among other states, has adopted the Uniform Foreign Money Judgment Recognition Act. If a foreign judgment grants or denies a specific lump sum of money, Pennsylvania will give the judgment full faith and credit. It does not cover cases involving taxes, penal judgments, or cases involving money related to alimony or child support.
CHAPTER 2:
DIVORCE JUDGMENTS & DOMICILE
A. Recognition of Divorce Judgments •
Divorce judgments from other states are entitled to full faith and credit as long as: 1. Consent/Bilateral Divorce o
Consent divorce (also known as a bilateral divorce) is a divorce action in which:
o o
Court has personal jurisdiction over _____________________ parties, and At least one party lives in the state
Entitled to full faith and credit: Dissolution of the marriage as well as all related judgments Child custody, alimony, property division, child support
2. Ex Parte Divorce o
Ex parte divorce is a divorce action where the court has personal jurisdiction over only _________________ of the parties. Example 5:
My spouse and I were married in Pennsylvania and continue to
live there. I decide to move to Nevada but my spouse stays in Pennsylvania. I can seek an ex parte divorce in Nevada even though Nevada does not have
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personal jurisdiction over my spouse. However, Nevada does not have jurisdiction over property division or child custody.
o
Entitled to full faith and credit: Divorce decree only (dissolution of marriage)
3. Estoppel Against Collateral Attack o
Anyone who has an interest in the case (a child) may collaterally attack the validity of a state’s decree. Example 6:
Nevada issues a divorce judgment. A child to the marriage can
collaterally attack the Nevada decree by challenging its enforcement in another state.
o
However, when the third party is in privity with one of the parties to the divorce, the third party may be _____________________________ from making such an attack based on that party’s relationship to the initial proceedings (full and fair opportunity in the initial proceeding).
4. Child Custody o o o
There is a reciprocal statute in all 50 states known as the Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA) that governs child custody. Under the UCCJEA, a court that makes an initial custody decision is entitled to full faith and credit in every other state. These custody decisions are not modifiable unless the original court no longer has _____________________________________ to the child or parents.
5. Property and Alimony o o
_____________________________ divorce decrees that are related to property and alimony: Entitled to full faith and credit. ________________________ divorce decrees that relate to property and alimony: Not entitled to full faith and credit
6. Remarriage o
As long as the divorce is ___________________ in the issuing state, the parties are free to remarry in another state.
7. Divorce Judgments from Foreign Countries o o
The court will generally recognize foreign divorce judgments under ___________________, as long as domicile is met. As to other divorce-related agreements, such as alimony, property, and child custody, the ruling of the other court will generally be followed as if the judgment came from another state.
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B. Domicile •
Domicile is a person’s legal residence. 1. Domicile of Individuals o o
Individuals can have only ___________________ domicile. Domicile can be acquired either by choice or operation of law.
a. Factors to Determine Domicile
The court will look at: ______________________________________ and _______________________. •
Where a person sleeps, votes, works, lives, etc.
•
Where a person declares himself to be domiciled
Physical presence trumps intent where the two conflict.
b. Domicile by Operation of Law
This occurs when an individual does not have the legal __________________________ to choose his domicile, such as with minors and incompetents.
1) Infants/Minors •
Infants of married parents who live together are domiciled where their _______________________ is domiciled.
•
If the father has died, domicile is where the ________________________ lives.
•
If the parents are separated or divorced, domicile is the place where the ____________________________ parent lives.
2) Incompetents •
One who lacks the mental legal capacity to choose a domicile will retain the domicile of his/her parents (father, then mother).
•
If the person once had legal capacity, chose a domicile, and then lost legal capacity, the person will retain his or her domicile.
2. Domicile of Corporations
CHAPTER 3:
A corporation’s domicile is always the state where it is _______________________.
CHOICE OF LAW
A. General Overview •
The forum court must determine which state’s laws should apply Example 7:
You drive from Pennsylvania to Florida. You are in a car accident
in Georgia with driver from Ohio.
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Civil Procedure issue—State in which Pennsylvania plaintiff can sue: Ohio, Georgia, maybe in Pennsylvania if sufficient contacts Conflict of Law issue—Law that applies to the issues in the case: Georgia has no damage cap, Pennsylvania has a $50,000 damage cap, Ohio has a $250,000 damage cap.
•
There is no constitutional directive requiring application of a specific state’s law. o o
•
Courts approach choice of law questions using three different approaches: o o o
•
Vertical conflict: Federal law governs under the Supremacy Clause Horizontal conflict: Courts have a choice of law
Vested _____________________ approach = First Restatement approach Most _________________________________ relationship approach = Second Restatement approach Government __________________________ approach
Pennsylvania favors a ______________________ approach o
Most significant relationship & government interest.
B. Vested Rights Approach (First Restatement) •
Territoriality: Each state is a coequal sovereign that has power within its own borders.
•
Based on where the right that is being sued upon vests. o o
Contract: Where was the contract completed? (Negotiated and signed) Tort: Where was the injury? Example 8:
Negligence: The plaintiff must prove duty, breach, causation, and
injury (or damages). The injury is the last event necessary in order to sue on the tort. Example 9:
I’m injured in a car accident in Ohio. My rights vest in Ohio under
the Vested Rights Approach
o
Property: Where the land is located Note 3: It is important to note that where a right vests differs depending on the substantive area of law (contract, tort, etc.).
C. Most Significant Relationship Approach (Second Restatement) •
Apply the law of the state with the most significant relationship to the issue in question.
•
Which state has the most significant relationship: the court considers seven policy principles: 1. The needs of the _______________________________ or international system o
Usually not a factor in most cases
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2. The relevant policies of the ______________________ o
The state hearing the case
3. Policies of any other interested states Example 10: The Pennsylvania resident is in a car accident with an Ohio resident in Georgia. The PA plaintiff brings suit in Georgia. Georgia has no damage cap because GA’s policy is to give plaintiffs adequate damages. The GA court (the forum court) would also consider why the other interested states have damage caps. Ohio has a damage cap of $250,000 because it wants to protect Ohio defendants from excess verdicts.
4. The ______________________ expectations o
This is generally a factor for contracts (most people do not have expectations for torts)
5. Policies underlying the _________________________________ areas of law Example 11: Contracts: the law prefers enforcement of contracts Example 12: Torts: the law exists to compensate the victim and punish or deter the defendant
6. Certainty, ______________________________, and uniformity 7. Ease of future _________________________________ D. Government Interest Approach •
Presumption: Forum law will apply UNLESS some other law applies
•
A party may request another state’s law o
The party must explain the law and policies and advocate for the other state’s law
1. True conflict o
More than one state is interested, there is a true conflict Example 13: PA is interested because the plaintiff is a domiciliary of PA Example 14: Ohio is interested because the defendant is a domiciliary of OH Example 15: Georgia might not be interested. It might be interested in the safety of its highways.
o
The forum state will review its own policies and the policies of other interested states to determine which law should apply
If the forum is disinterested, it will apply the law that is most like the forum. If the forum is interested, it will apply forum law.
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If the conflict cannot be resolved (the forum cannot find a reason to choose one state over the other) the court would apply forum law. o If the forum is disinterested, the case might be able to dismiss for forum non conveniens
o
If forum non conveniens is not available, the forum will choose the law of the most interested state, or the law that is the most like the forum's law.
2. False conflict •
If no state has an interest, there is no conflict
•
Default to ______________ law 3. Specific issues
•
In marriage cases, the law of the place where the marriage ceremony took place applies (celebration rule).
•
In corporate cases, the law of the state where the company is _________________________ applies.
CHAPTER 4:
PENNSYLVANIA CHOICE OF LAW
A. Pennsylvania-Specific Approach •
Pennsylvania courts use a ____________________ approach of the principles set out in the most significant relationship and government interest approaches to determine choice of law.
•
Emphasizes the number AND quality of contacts to the issue
•
The most significant relationship portion of the analysis requires characterization of the claim Example 16: A contract for the sale of land may be characterized as either a contract or a real property issue. Example 17: An employee sues their employer for workplace injury may be characterized as a tort or contract issue. Note 4: The seven principles apply regardless of characterization. Additionally, each type of claim requires consideration of certain contacts.
B. Torts •
In addition to the seven most significant relationship principles, consider these contacts: o o
Where the ________________________ occurred (generally controlling). Where the _________________________ that caused the injury occurred. Note 5: The injury and the conduct causing the injury often occur in the same state. However, there are scenarios where these two contacts can differ. Example 18: You are hunting in Pennsylvania. You negligently fire a bullet that travels across the border and injures someone in Ohio.
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o o
Where the ________________________ are domiciled, reside, or are incorporated. Where the ______________________________ between the parties is centered. Exam Tip 1: Discuss all of the principles and contacts even if one seems more important than the others.
1. Existence of cause of action o o
Sometimes the biggest issue is whether the court should even recognize the cause of action because one state recognizes the claim and the other does not. Under the Most Significant Relationship approach, the law of the jurisdiction that has the most significant relationship to the ________________ and the ________________ determines whether there is a cause of action. Note 6: In cases of vicarious liability, the court will also look to the state that has the most significant relationship to the parties and the occurrence of the tort.
o
Under the Government Interest approach, the forum state’s law controls as long as that state has a legitimate interest.
2. Damages o o o
Most Significant Relationship approach: Law of the state having the most significant relationship to the transaction governs. Governmental Interest approach: State of the plaintiff’s _______________________ has a legitimate interest in having its laws of damages applied. Pennsylvania Hybrid approach: Discuss BOTH approaches
C. Contracts 1. Express Choice of Law Provision o
The choice-of-law provision will govern unless:
It is contrary to ______________________ policy; There is no reasonable _____________________ for the parties’ choice; or Example 19: A PA resident contracts with an OH resident to build a house in OH. The parties choose Hawaii law to govern the contract. Hawaii has no interest in this transaction so there is no reasonable basis for this choice.
There was __________________ or mistake and true consent was not given.
2. No Express Choice of Law Provision o o
If there is no express choice of law provision or the provision is unenforceable, the forum court will engage in choice of law analysis In Pennsylvania, the hybrid approach governs
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3. Most Significant Relationship a. In General
Seven policy principles are considered, in addition to the following contacts: •
The place of the ___________________________, negotiation, or performance.
•
Where the _______________________ matter of the contract is located
•
Where the parties are ___________________________, reside, or are incorporated.
b. Specific Kinds of Contracts o
Land contracts are controlled by the law of the place where the ____________________ is located. Personalty contracts are controlled by the law of the place of _________________________. Life insurance contracts are controlled by the law of the place where the insured is ___________________________. Casualty insurance contracts are controlled by the law of the location of the insured risk. Loans are controlled by the law of the place where repayment is required. Suretyship contracts are controlled by the law governing the principle obligation. Transportation contracts are controlled by the law of the place of _________________.
Remember: The Most Significant Relationship still prevails. The rules relating to these specific kinds of contracts are subject other factors showing a more significant relationship to another state.
4. Governmental Interest o o
This approach does not change based on substantive areas of law. This approach does rely on which state is interested Exam Tip 2: Discuss BOTH approaches.
CHAPTER 5:
PENNSYLVANIA CHOICE OF LAW (CONT'D)
A. Property 1. Personal Property o o
Most Significant Relationship (Second Restatement): Law of the situs (location of property) at the time the relevant transaction took place. If the property is intangible, then it is generally the law of the “situs of debt” that is used, such as the domicile of the _________________.
If another state has a more significant relationship (under the seven principles), the forum will apply that state's law instead of the domicile of the debtor.
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2. Real Property o o
Most Significant Relationship (Second Restatement): Law of the ______________________ of the real property Governmental Interest: The state where the land is located is interested
3. Trusts o
With trusts, the law of the state where the trust is _____________________ applies.
4. Inheritance (Either by will or intestacy) o o
Transfer of real property: Law of the _______________________ of the land Transfer of personal property: Law of the deceased’s __________________________ at the time of death governs.
B. Family Law o o o
Celebration Rule: Marriages are valid everywhere if they are valid where __________________. Anullment: Determined by the law of the state where celebrated. Same-sex marriage
Same-sex couples may now marry in all states, and all states must recognize a same-sex marriage legally entered into in another state. Pennsylvania will also give full faith and credit to same-sex marriages celebrated in other states. So long as the same-sex marriage was valid in that state, Pennsylvania will recognize that marriage.
C. Arguments Against Application of Foreign Law 1. Application of Foreign Law •
Three arguments can be made against the application of foreign law: o
The law is ___________________________________.
The forum applies its own procedural rules (evidence, filing requirements) The forum still determines whether to apply another state's substantive law Note 7: A law that affects the end result of the case (outcome determinative) is more likely to be substantive. Damage caps have been determined to be substantive.
o
The law is against the___________________________ of the forum. Note 8: Under the governmental interest approach, public policy is considered in the main analysis, not as an exception.
o
The law is a ________________________ law.
The Second Restatement prohibits a state from applying foreign criminal laws.
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However, civil punishments can be applied, such as a wrongful death action.
2. Application of State or Federal Law a. Applying federal law in state courts
Areas of the law governed exclusively by federal courts include: •
Federal _____________________________,
•
Bankruptcy, and
•
Patents
States have the power to _____________________________ federal law outside of these three areas, and are obligated to do so unless they have a valid reason for refusal
b. Applying state law in federal courts based on Diversity Jurisdiction
Erie Doctrine: In diversity jurisdiction cases, federal district courts must apply the substantive law of the state in which it is physically located, including choice-of-law. Federal courts apply federal procedural rules Outcome determinative: If a law affects the outcome of the case, it is likely _____________________________ If a federal rule of procedure applies, it is likely _____________________________
3. Proof of Foreign Law o
Courts can take judicial notice of sister state, federal, and foreign laws and treat them as law rather than fact.
GOOD LUCK ON THE PENNSYLVANIA BAR EXAM!
[END OF HANDOUT]
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