REST 2d CONFL s 6 Restatement (Second) of Conflict of Laws s 6 (1969 Main Vol.)
COMMENTS
Comment on Subsection (1):
a. Statutes directed to choice of law. A court, subject to constitutional
limitations, must follow the directions of its legislature. The court must
apply a local statutory provision directed to choice of law provided that
it would be constitutional to do so. An example of a statute directed to
choice of law is the Uniform Commercial Code which provides in certain
instances for the application of the law chosen by the parties (s 1105(1))
and in other instances for the application of the law of a particular state
(ss 2402, 4 102, 6102, 8106, 9103). Another example
is the Model Execution of Wills Act which provides that a written will
subscribed by the testator shall be valid as to matters of form if it complies
with the local requirements of any one of a number of enumerated states.
Statutes that are expressly directed to choice of law, that is to say,
statutes which provide for the application of the local law of one state,
rather than the local law of another state, are comparatively few in number.
b. Intended range of application of statute. A court will rarely find that
a question of choice of law is explicitly covered by statute. That is to
say, a court will rarely be directed by statute to apply the local law
of one state, rather than the local law of another state, in the decision
of a particular issue. On the other hand, the court will constantly be
faced with the question whether the issue before it falls within the intended
range of application of a particular statute. The court should give a local
statute the range of application intended by the legislature when these
intentions can be ascertained and can constitutionally be given effect.
If the legislature intended that the statute should be applied to the outofstate
facts involved, the court should so apply it unless constitutional considerations
forbid. On the other hand, if the legislature intended that the statute
should be applied only to acts taking place within the state, the statute
should not be given a wider range of application. Sometimes a statute's
intended range of application will be apparent on its face, as when it
expressly applies to all citizens of a state including those who are living
abroad. When the statute is silent as to its range of application, the
intentions of the legislature on the subject can sometimes be ascertained
by a process of interpretation and construction. Provided that it is constitutional
to do so, the court will apply a local statute in the manner intended by
the legislature even when the local law of another state would be applicable
under usual choiceoflaw principles.
COMMENTS
Comment on Subsection (2):
c. Rationale. Legislatures usually legislate, and courts usually adjudicate,
only with the local situation in mind. They rarely give thought to the
extent to which the laws they enact, and the common law rules they enunciate,
should apply to outofstate facts. When there are no adequate
directives in the statute or in the case law, the court will take account
of the factors listed in this Subsection in determining the state whose
local law will be applied to determine the issue at hand. It is not suggested
that this list of factors is exclusive. Undoubtedly, a court will on occasion
give consideration to other factors in deciding a question of choice of
law. Also it is not suggested that the factors mentioned are listed in
the order of their relative importance. Varying weight will be given to
a particular factor, or to a group of factors, in different areas of choice
of law. So, for example, the policy in favor of effectuating the relevant
policies of the state of dominant interest is given predominant weight
in the rule that transfers of interests in land are governed by the law
that would be applied by the courts of the situs (see ss 223243).
On the other hand, the policies in favor of protecting the justified expectations
of the parties and of effectuating the basic policy underlying the particular
field of law come to the fore in the rule that, subject to certain limitations,
the parties can choose the law to govern their contract (see s 187) and
in the rules which provide, subject to certain limitations, for the application
of a law which will uphold the validity of a trust of movables (see ss
269270) or the validity of a contract against the charge of commercial
usury (see s 203). Similarly, the policy favoring uniformity of result
comes to the fore in the rule that succession to interests in movables
is governed by the law that would be applied by the courts of the state
where the decedent was domiciled at the time of his death (see ss 260 and
263). At least some of the factors mentioned in this Subsection will point
in different directions in all but the simplest case. Hence any rule of
choice of law, like any other common law rule, represents an accommodation
of conflicting values.
Those chapters in the Restatement of this Subject which are concerned with choice of law state the rules which the courts have evolved in accommodation of the factors listed in this Subsection. In certain areas, as in parts of Property (Chapter 9), such rules are sufficiently precise to permit them to be applied in the decision of a case without explicit reference to the factors which underlie them. In other areas, such as in Wrongs (Chapter 7) and Contracts (Chapter 8), the difficulties and complexities involved have as yet prevented the courts from formulating a precise rule, or series of rules, which provide a satisfactory accommodation of the underlying factors in all of the situations which may arise. All that can presently be done in these areas is to state a general principle, such as application of the local law "of the state of most significant relationship", which provides some clue to the correct approach but does not furnish precise answers. In these areas, the courts must look in each case to the underlying factors themselves in order to arrive at a decision which will best accommodate them. Statement of precise rules in many areas of choice of law is made even more difficult by the great variety of situations and of issues, by the fact that many of these situations and issues have not been thoroughly explored by the courts, by the generality of statement frequently used by the courts in their opinions, and by the new grounds of decision stated in many of the more recent opinions.
The Comments which follow provide brief discussion of the factors underlying
choice of law which are mentioned in this Subsection. d. Needs of the interstate
and international systems. Probably the most important function of choiceoflaw
rules is to make the interstate and international systems work well. Choiceoflaw
rules, among other things, should seek to further harmonious relations
between states and to facilitate commercial intercourse between them. In
formulating rules of choice of law, a state should have regard for the
needs and policies of other states and of the community of states. Rules
of choice of law formulated with regard for such needs and policies are
likely to commend themselves to other states and to be adopted by these
states. Adoption of the same choiceoflaw rules by many states
will further the needs of the interstate and international systems and
likewise the values of certainty, predictability and uniformity of result.
e. Relevant policies of the state of the forum. Two situations should be
distinguished. One is where the state of the forum has no interest in the
case apart from the fact that it is the place of the trial of the action.
Here the only relevant policies of the state of the forum will be embodied
in its rules relating to trial administration (see Chapter 6). The second
situation is where the state of the forum has an interest in the case apart
from the fact that it is the place of trial. In this latter situation,
relevant policies of the state of the forum may be embodied in rules that
do not relate to trial administration. The problem dealt with in this Comment
arises in the common situation where a statute or common law rule of the
forum was formulated solely with the intrastate situation in mind or, at
least, where there is no evidence to suggest that the statute or rule was
intended to have extraterritorial application. If the legislature or court
(in the case of a common law rule) did have intentions with respect to
the range of application of a statute or common law rule and these intentions
can be ascertained, the rule of Subsection (1) is applicable. If not, the
court will interpret the statute or rule in the light of the factors stated
in Subsection (2). Every rule of law, whether embodied in a statute or
in a common law rule, was designed to achieve one or more purposes. A court
should have regard for these purposes in determining whether to apply its
own rule or the rule of another state in the decision of a particular issue.
If the purposes sought to be achieved by a local statute or common law
rule would be furthered by its application to outof state facts,
this is a weighty reason why such application should be made. On the other
hand, the court is under no compulsion to apply the statute or rule to
such outofstate facts since the originating legislature or court
had no ascertainable intentions on the subject. The court must decide for
itself whether the purposes sought to be achieved by a local statute or
rule should be furthered at the expense of the other choiceoflaw
factors mentioned in this Subsection. f. Relevant policies of other interested
states. In determining a question of choice of law, the forum should give
consideration not only to its own relevant policies (see Comment e) but
also to the relevant policies of all other interested states. The forum
should seek to reach a result that will achieve the best possible accommodation
of these policies. The forum should also appraise the relative interests
of the states involved in the determination of the particular issue. In
general, it is fitting that the state whose interests are most deeply affected
should have its local law applied. Which is the state of dominant interest
may depend upon the issue involved. So if a husband injures his wife in
a state other than that of their domicil, it may be that the state of conduct
and injury has the dominant interest in determining whether the husband's
conduct was tortious or whether the wife was guilty of contributory negligence
(see s 146). On the other hand, the state of the spouses' domicil is the
state of dominant interest when it comes to the question whether the husband
should be held immune from tort liability to his wife (see s 169). The
content of the relevant local law rule of a state may be significant in
determining whether this state is the state with the dominant interest.
So, for example, application of a state's statute or common law rule which
would absolve the defendant from liability could hardly be justified on
the basis of this state's interest in the welfare of the injured plaintiff.
g. Protection of justified expectations. This is an important value in
all fields of the law, including choice of law. Generally speaking, it
would be unfair and improper to hold a person liable under the local law
of one state when he had justifiably molded his conduct to conform to the
requirements of another state. Also, it is in part because of this factor
that the parties are free within broad limits to choose the law to govern
the validity of their contract (see s 187) and that the courts seek to
apply a law that will sustain the validity of a trust of movables (see
ss 269270). There are occasions, particularly in the area of negligence,
when the parties act without giving thought to the legal consequences of
their conduct or to the law that may be applied. In such situations, the
parties have no justified expectations to protect, and this factor can
play no part in the decision of a choiceoflaw question. h. Basic
policies underlying particular field of law. This factor is of particular
importance in situations where the policies of the interested states are
largely the same but where there are nevertheless minor differences between
their relevant local law rules. In such instances, there is good reason
for the court to apply the local law of that state which will best achieve
the basic policy, or policies, underlying the particular field of law involved.
This factor explains in large part why the courts seek to apply a law that
will sustain the validity of a contract against the charge of commercial
usury (s 203) or the validity of a trust of movables against the charge
that it violates the Rule Against Perpetuities (ss 269270). i. Predictability
and uniformity of result. These are important values in all areas of the
law. To the extent that they are attained in choice of law, forum shopping
will be discouraged. These values can, however, be purchased at too great
a price. In a rapidly developing area, such as choice of law, it is often
more important that good rules be developed than that predictability and
uniformity of result should be assured through continued adherence to existing
rules. Predictability and uniformity of result are of particular importance
in areas where the parties are likely to give advance thought to the legal
consequences of their transactions. It is partly on account of these factors
that the parties are permitted within broad limits to choose the law that
will determine the validity and effect of their contract (see s 187) and
that the law that would be applied by the courts of the state of the situs
is applied to determine the validity of transfers of interests in land
(see s 223). Uniformity of result is also important when the transfer of
an aggregate of movables, situated in two or more states, is involved.
Partly for this reason, the law that would be applied by the courts of
the state of a decedent's domicil at death is applied to determine the
validity of his will in so far as it concerns movables (see s 263) and
the distribution of his movables in the event of intestacy (see s 260).
j. Ease in the determination and application of the law to be applied.
Ideally, choiceoflaw rules should be simple and easy to apply.
This policy should not be overemphasized, since it is obviously of greater
importance that choiceoflaw rules lead to desirable results.
The policy does, however, provide a goal for which to strive. k. Reciprocity.
In formulating common law rules of choice of law, the courts are rarely
guided by considerations of reciprocity. Private parties, it is felt, should
not be made to suffer for the fact that the courts of the state from which
they come give insufficient consideration to the interests of the state
of the forum. It is also felt that satisfactory development of choiceof
law rules can best be attained if each court gives fair consideration to
the interests of other states without regard to the question whether the
courts of one or more of these other states would do the same. As to whether
reciprocity is a condition to the recognition and enforcement of a judgment
of a foreign nation, see s 98, Comment e. States sometimes incorporate
a principle of reciprocity into statutes and treaties. They may do so in
order to induce other states to take certain action favorable to their
interests or to the interests of their citizens. So, as stated in s 89,
Comment b, many States of the United States have enacted statutes which
provide that a suit by a sister State for the recovery of taxes will be
entertained in the local courts if the courts of the sister State would
entertain a similar suit by the State of the forum. Similarly, by way of
further example, some States of the United States provide by statute that
an alien cannot inherit local assets unless their citizens in turn would
be permitted to inherit in the state of the alien's nationality. A principle
of reciprocity is also sometimes employed in statutes to permit reciprocating
states to obtain by cooperative efforts what a single state could not obtain
through the force of its own law. See, e.g., Uniform Reciprocal Enforcement
of Support Act; Uniform (Reciprocal) Act to Secure Attendance of Witnesses
from Without a State in Criminal Proceedings; Interpleader Compact Law.