PENNSYLVANIA CONFLICT OF LAWS PROFESSOR KEVIN P. OATES DREXEL UNIVERSITY THOMAS R. KLINE SCHOOL OF LAW
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1 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 Tpics in Cnflict f Laws: Full faith and credit fr judgments Dmicile Chice f law A. Full Faith and Credit fr Judgments The U.S. Cnstitutin s Full Faith and Credit Clause prvides that each state will recgnize the legal recrds and prceedings frm ther states. Full faith and credit fr judgment refers t recgnitin f the judgment in a secnd state Example 1: Ohi (Frum 1) has issued a judgment. In an enfrcement f judgment actin filed in Pennsylvania (Frum 2), Pennsylvania must give full faith and credit t the. 1. Requirements In rder fr a judgment t be given Full Faith and Credit, it must be: A judgment (n appeals utstanding); On the (nt reslved n prcedural basis, lack f venue, r statute f limitatins); and Issued by a curt with. 2. Defenses t Full Faith and Credit fr Judgments a. Sufficient defenses (need nt be enfrced) judgments (criminal) Judgment based n b. Insufficient defenses (must be enfrced) judgments Judgments cntrary t plicy f enfrcing state Example 2: I live in Nevada. I enter int a gaming cntract with smene in Nevada in accrdance with Nevada law. I fail t pay under the cntract and he btains a final judgment against me in Nevada. I have already mved back t
2 Pennsylvania. He seeks t enfrce the judgment against me in Pennsylvania. I cannt use public plicy t prevent Pennsylvania frm enfrcing the judgment against me. Nte 1: The public plicy exceptin t Full Faith and Credit might apply t decisins that are nt final judgments. Judgments based n a f fact r law Example 3: If the Ohi judgment was based n a mistake, Pennsylvania must nevertheless enfrce the final judgment because Full Faith and Credit applies. The mistake is remedied by an appeal in Ohi. 3. Res Judicata (Claim Preclusin) A final judgment n the merits by a curt with jurisdictin is entitled t same effect in ther states as it wuld have in the riginal r hme state that decided the judgment. Merger: If plaintiff btained the judgment, the plaintiff s cause f actin int the judgment and the defendant is prhibited frm relitigating the merits. Bar: If defendant btained the judgment, the is barred frm filing anther suit fr that same cause f actin in anther state. 4. Cllateral Estppel (Issue Preclusin) Cllateral estppel eliminates the pprtunity fr parties t relitigate the issues in a subsequent suit. Cllateral estppel applies when: Substantive issue f the case at hand was previusly in the case. Issue was t supprting the judgment in the initial prceeding Parties claiming cllateral estppel were either a t the riginal actin r were in privity with a party t the riginal actin (full and fair pprtunity). 5. Enfrcement Judgments determined t be entitled t full faith and credit must be enfrced. Under the Effects Clause, the state that is recgnizing the judgment may make the determinatin as t the enfrcement mechanism. Example 4: Pennsylvania has a hmestead exceptin limiting the enfrcement f a judgment against the defendant's primary residence. Pennsylvania must recgnize the Nevada judgment under Full Faith and Credit, but will cmply with Pennsylvania prcedures in enfrcing the judgment Themis Bar Review, LLC PA Cnflict f Laws
3 6. Federal Curts and Administrative Tribunal Judgments The Full Faith and Credit Clause f the United States Cnstitutin generally extends t federal cases and adjudicatins. B. Recgnitin f Judgments frm Freign Cuntries Nt subject t Full Faith and Credit 1. Cmity Nte 2: In Cnflict f Laws, "freign judgment" is smetimes used t refer t a judgment frm a different state. Lk fr whether the judgment cmes frm anther state r cmes frm anther cuntry (Mexic, Canada, etc.). Cmity is the discretinary recgnitin f a judgment frm a freign cuntry. United States curts are nt required t, but may recgnize freign judgments. 2. Unifrm Freign Mney Judgment Recgnitin Act Pennsylvania, amng ther states, has adpted the Unifrm Freign Mney Judgment Recgnitin Act. If a freign judgment grants r denies a specific lump sum f mney, Pennsylvania will give the judgment full faith and credit. It des nt cver cases invlving taxes, penal judgments, r cases invlving mney related t alimny r child supprt. CHAPTER 2: DIVORCE JUDGMENTS & DOMICILE A. Recgnitin f Divrce Judgments Divrce judgments frm ther states are entitled t full faith and credit as lng as: 1. Cnsent/Bilateral Divrce Cnsent divrce (als knwn as a bilateral divrce) is a divrce actin in which: Curt has persnal jurisdictin ver parties, and At least ne party lives in the state Entitled t full faith and credit: Disslutin f the marriage as well as all related judgments Child custdy, alimny, prperty divisin, child supprt 2. Ex Parte Divrce Ex parte divrce is a divrce actin where the curt has persnal jurisdictin ver nly f the parties. Example 5: My spuse and I were married in Pennsylvania and cntinue t live there. I decide t mve t Nevada but my spuse stays in Pennsylvania. I can seek an ex parte divrce in Nevada even thugh Nevada des nt have PA Cnflict f Laws 2016 Themis Bar Review, LLC 3
4 persnal jurisdictin ver my spuse. Hwever, Nevada des nt have jurisdictin ver prperty divisin r child custdy. Entitled t full faith and credit: Divrce decree nly (disslutin f marriage) 3. Estppel Against Cllateral Attack Anyne wh has an interest in the case (a child) may cllaterally attack the validity f a state s decree. Example 6: Nevada issues a divrce judgment. A child t the marriage can cllaterally attack the Nevada decree by challenging its enfrcement in anther state. Hwever, when the third party is in privity with ne f the parties t the divrce, the third party may be frm making such an attack based n that party s relatinship t the initial prceedings (full and fair pprtunity in the initial prceeding). 4. Child Custdy There is a reciprcal statute in all 50 states knwn as the Unifrm Child Custdy Jurisdictin and Enfrcement Act (UCCJEA) that gverns child custdy. Under the UCCJEA, a curt that makes an initial custdy decisin is entitled t full faith and credit in every ther state. These custdy decisins are nt mdifiable unless the riginal curt n lnger has t the child r parents. 5. Prperty and Alimny divrce decrees that are related t prperty and alimny: Entitled t full faith and credit. divrce decrees that relate t prperty and alimny: Nt entitled t full faith and credit 6. Remarriage As lng as the divrce is in the issuing state, the parties are free t remarry in anther state. 7. Divrce Judgments frm Freign Cuntries The curt will generally recgnize freign divrce judgments under, as lng as dmicile is met. As t ther divrce-related agreements, such as alimny, prperty, and child custdy, the ruling f the ther curt will generally be fllwed as if the judgment came frm anther state Themis Bar Review, LLC PA Cnflict f Laws
5 B. Dmicile Dmicile is a persn s legal residence. 1. Dmicile f Individuals Individuals can have nly dmicile. Dmicile can be acquired either by chice r peratin f law. a. Factrs t Determine Dmicile The curt will lk at: and. Where a persn sleeps, vtes, wrks, lives, etc. Where a persn declares himself t be dmiciled Physical presence trumps intent where the tw cnflict. b. Dmicile by Operatin f Law This ccurs when an individual des nt have the legal t chse his dmicile, such as with minrs and incmpetents. 1) Infants/Minrs Infants f married parents wh live tgether are dmiciled where their is dmiciled. If the father has died, dmicile is where the lives. If the parents are separated r divrced, dmicile is the place where the parent lives. 2) Incmpetents One wh lacks the mental legal capacity t chse a dmicile will retain the dmicile f his/her parents (father, then mther). If the persn nce had legal capacity, chse a dmicile, and then lst legal capacity, the persn will retain his r her dmicile. 2. Dmicile f Crpratins A crpratin s dmicile is always the state where it is. CHAPTER 3: CHOICE OF LAW A. General Overview The frum curt must determine which state s laws shuld apply Example 7: Yu drive frm Pennsylvania t Flrida. Yu are in a car accident in Gergia with driver frm Ohi. PA Cnflict f Laws 2016 Themis Bar Review, LLC 5
6 Civil Prcedure issue State in which Pennsylvania plaintiff can sue: Ohi, Gergia, maybe in Pennsylvania if sufficient cntacts Cnflict f Law issue Law that applies t the issues in the case: Gergia has n damage cap, Pennsylvania has a $50,000 damage cap, Ohi has a $250,000 damage cap. There is n cnstitutinal directive requiring applicatin f a specific state s law. Vertical cnflict: Federal law gverns under the Supremacy Clause Hrizntal cnflict: Curts have a chice f law Curts apprach chice f law questins using three different appraches: Vested apprach = First Restatement apprach Mst relatinship apprach = Secnd Restatement apprach Gvernment apprach Pennsylvania favrs a apprach Mst significant relatinship & gvernment interest. B. Vested Rights Apprach (First Restatement) Territriality: Each state is a cequal svereign that has pwer within its wn brders. Based n where the right that is being sued upn vests. Cntract: Where was the cntract cmpleted? (Negtiated and signed) Trt: Where was the injury? Example 8: Negligence: The plaintiff must prve duty, breach, causatin, and injury (r damages). The injury is the last event necessary in rder t sue n the trt. Example 9: I m injured in a car accident in Ohi. My rights vest in Ohi under the Vested Rights Apprach Prperty: Where the land is lcated Nte 3: It is imprtant t nte that where a right vests differs depending n the substantive area f law (cntract, trt, etc.). C. Mst Significant Relatinship Apprach (Secnd Restatement) Apply the law f the state with the mst significant relatinship t the issue in questin. Which state has the mst significant relatinship: the curt cnsiders seven plicy principles: 1. The needs f the r internatinal system Usually nt a factr in mst cases Themis Bar Review, LLC PA Cnflict f Laws
7 2. The relevant plicies f the The state hearing the case 3. Plicies f any ther interested states Example 10: The Pennsylvania resident is in a car accident with an Ohi resident in Gergia. The PA plaintiff brings suit in Gergia. Gergia has n damage cap because GA s plicy is t give plaintiffs adequate damages. The GA curt (the frum curt) wuld als cnsider why the ther interested states have damage caps. Ohi has a damage cap f $250,000 because it wants t prtect Ohi defendants frm excess verdicts. 4. The expectatins This is generally a factr fr cntracts (mst peple d nt have expectatins fr trts) 5. Plicies underlying the areas f law Example 11: Cntracts: the law prefers enfrcement f cntracts Example 12: Trts: the law exists t cmpensate the victim and punish r deter the defendant 6. Certainty,, and unifrmity 7. Ease f future D. Gvernment Interest Apprach Presumptin: Frum law will apply UNLESS sme ther law applies A party may request anther state s law The party must explain the law and plicies and advcate fr the ther state s law 1. True cnflict Mre than ne state is interested, there is a true cnflict Example 13: PA is interested because the plaintiff is a dmiciliary f PA Example 14: Ohi is interested because the defendant is a dmiciliary f OH Example 15: Gergia might nt be interested. It might be interested in the safety f its highways. The frum state will review its wn plicies and the plicies f ther interested states t determine which law shuld apply If the frum is disinterested, it will apply the law that is mst like the frum. If the frum is interested, it will apply frum law. PA Cnflict f Laws 2016 Themis Bar Review, LLC 7
8 If the cnflict cannt be reslved (the frum cannt find a reasn t chse ne state ver the ther) the curt wuld apply frum law. If the frum is disinterested, the case might be able t dismiss fr frum nn cnveniens If frum nn cnveniens is nt available, the frum will chse the law f the mst interested state, r the law that is the mst like the frum's law. 2. False cnflict If n state has an interest, there is n cnflict Default t law 3. Specific issues In marriage cases, the law f the place where the marriage ceremny tk place applies (celebratin rule). In crprate cases, the law f the state where the cmpany is applies. CHAPTER 4: PENNSYLVANIA CHOICE OF LAW A. Pennsylvania-Specific Apprach Pennsylvania curts use a apprach f the principles set ut in the mst significant relatinship and gvernment interest appraches t determine chice f law. Emphasizes the number AND quality f cntacts t the issue The mst significant relatinship prtin f the analysis requires characterizatin f the claim B. Trts Example 16: A cntract fr the sale f land may be characterized as either a cntract r a real prperty issue. Example 17: An emplyee sues their emplyer fr wrkplace injury may be characterized as a trt r cntract issue. Nte 4: The seven principles apply regardless f characterizatin. Additinally, each type f claim requires cnsideratin f certain cntacts. In additin t the seven mst significant relatinship principles, cnsider these cntacts: Where the ccurred (generally cntrlling). Where the that caused the injury ccurred. Nte 5: The injury and the cnduct causing the injury ften ccur in the same state. Hwever, there are scenaris where these tw cntacts can differ. Example 18: Yu are hunting in Pennsylvania. Yu negligently fire a bullet that travels acrss the brder and injures smene in Ohi Themis Bar Review, LLC PA Cnflict f Laws
9 Where the are dmiciled, reside, r are incrprated. Where the between the parties is centered. Exam Tip 1: Discuss all f the principles and cntacts even if ne seems mre imprtant than the thers. 1. Existence f cause f actin Smetimes the biggest issue is whether the curt shuld even recgnize the cause f actin because ne state recgnizes the claim and the ther des nt. Under the Mst Significant Relatinship apprach, the law f the jurisdictin that has the mst significant relatinship t the and the determines whether there is a cause f actin. Nte 6: In cases f vicarius liability, the curt will als lk t the state that has the mst significant relatinship t the parties and the ccurrence f the trt. Under the Gvernment Interest apprach, the frum state s law cntrls as lng as that state has a legitimate interest. 2. Damages Mst Significant Relatinship apprach: Law f the state having the mst significant relatinship t the transactin gverns. Gvernmental Interest apprach: State f the plaintiff s has a legitimate interest in having its laws f damages applied. Pennsylvania Hybrid apprach: Discuss BOTH appraches C. Cntracts 1. Express Chice f Law Prvisin The chice-f-law prvisin will gvern unless: It is cntrary t plicy; There is n reasnable fr the parties chice; r Example 19: A PA resident cntracts with an OH resident t build a huse in OH. The parties chse Hawaii law t gvern the cntract. Hawaii has n interest in this transactin s there is n reasnable basis fr this chice. There was r mistake and true cnsent was nt given. 2. N Express Chice f Law Prvisin If there is n express chice f law prvisin r the prvisin is unenfrceable, the frum curt will engage in chice f law analysis In Pennsylvania, the hybrid apprach gverns PA Cnflict f Laws 2016 Themis Bar Review, LLC 9
10 3. Mst Significant Relatinship a. In General Seven plicy principles are cnsidered, in additin t the fllwing cntacts: The place f the, negtiatin, r perfrmance. Where the matter f the cntract is lcated Where the parties are, reside, r are incrprated. b. Specific Kinds f Cntracts Land cntracts are cntrlled by the law f the place where the is lcated. Persnalty cntracts are cntrlled by the law f the place f. Life insurance cntracts are cntrlled by the law f the place where the insured is. Casualty insurance cntracts are cntrlled by the law f the lcatin f the insured risk. Lans are cntrlled by the law f the place where repayment is required. Suretyship cntracts are cntrlled by the law gverning the principle bligatin. Transprtatin cntracts are cntrlled by the law f the place f. Remember: The Mst Significant Relatinship still prevails. The rules relating t these specific kinds f cntracts are subject ther factrs shwing a mre significant relatinship t anther state. 4. Gvernmental Interest This apprach des nt change based n substantive areas f law. This apprach des rely n which state is interested Exam Tip 2: Discuss BOTH appraches. CHAPTER 5: PENNSYLVANIA CHOICE OF LAW (CONT'D) A. Prperty 1. Persnal Prperty Mst Significant Relatinship (Secnd Restatement): Law f the situs (lcatin f prperty) at the time the relevant transactin tk place. If the prperty is intangible, then it is generally the law f the situs f debt that is used, such as the dmicile f the. If anther state has a mre significant relatinship (under the seven principles), the frum will apply that state's law instead f the dmicile f the debtr Themis Bar Review, LLC PA Cnflict f Laws
11 2. Real Prperty Mst Significant Relatinship (Secnd Restatement): Law f the f the real prperty Gvernmental Interest: The state where the land is lcated is interested 3. Trusts With trusts, the law f the state where the trust is applies. 4. Inheritance (Either by will r intestacy) Transfer f real prperty: Law f the f the land Transfer f persnal prperty: Law f the deceased s at the time f death gverns. B. Family Law Celebratin Rule: Marriages are valid everywhere if they are valid where. Anullment: Determined by the law f the state where celebrated. Same-sex marriage Same-sex cuples may nw marry in all states, and all states must recgnize a same-sex marriage legally entered int in anther state. Pennsylvania will als give full faith and credit t same-sex marriages celebrated in ther states. S lng as the same-sex marriage was valid in that state, Pennsylvania will recgnize that marriage. C. Arguments Against Applicatin f Freign Law 1. Applicatin f Freign Law Three arguments can be made against the applicatin f freign law: The law is. The frum applies its wn prcedural rules (evidence, filing requirements) The frum still determines whether t apply anther state's substantive law Nte 7: A law that affects the end result f the case (utcme determinative) is mre likely t be substantive. Damage caps have been determined t be substantive. The law is against the f the frum. Nte 8: Under the gvernmental interest apprach, public plicy is cnsidered in the main analysis, nt as an exceptin. The law is a law. The Secnd Restatement prhibits a state frm applying freign criminal laws. PA Cnflict f Laws 2016 Themis Bar Review, LLC 11
12 Hwever, civil punishments can be applied, such as a wrngful death actin. 2. Applicatin f State r Federal Law a. Applying federal law in state curts Areas f the law gverned exclusively by federal curts include: Federal, Bankruptcy, and Patents States have the pwer t federal law utside f these three areas, and are bligated t d s unless they have a valid reasn fr refusal b. Applying state law in federal curts based n Diversity Jurisdictin Erie Dctrine: In diversity jurisdictin cases, federal district curts must apply the substantive law f the state in which it is physically lcated, including chice-f-law. Federal curts apply federal prcedural rules Outcme determinative: If a law affects the utcme f the case, it is likely If a federal rule f prcedure applies, it is likely 3. Prf f Freign Law Curts can take judicial ntice f sister state, federal, and freign laws and treat them as law rather than fact. GOOD LUCK ON THE PENNSYLVANIA BAR EXAM! [END OF HANDOUT] Themis Bar Review, LLC PA Cnflict f Laws
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