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Pleading and proving foreign law. Borrowing statutes.

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Presentation on theme: "Pleading and proving foreign law. Borrowing statutes."— Presentation transcript:

1 pleading and proving foreign law

2 Borrowing statutes

3 Bridge Prods. Inc. v. Quantum Chem. Corp. (ND Ill 1990) Property bought in VA Del choice of law provision in K Suit in Ill Should court use Del statute of limitations? Or should it use the statute of limitations that would be applied by an Illinois court? – In this case it was VAs

4 Party Autonomy

5 Choice-of-law clauses in contracts Choice of law that validates contracts – Could be used even when no choice-of-law provisions exists – Could be used to choose law other than

6 Pritchard v. Norton (U.S. 1882)

7 Rest 2d § 188. Law Governing In Absence Of Effective Choice By The Parties (1) The rights and duties of the parties with respect to an issue in contract are determined by the local law of the state which, with respect to that issue, has the most significant relationship to the transaction and the parties under the principles stated in § 6. … (3) If the place of negotiating the contract and the place of performance are in the same state, the local law of this state will usually be applied, except as otherwise provided in §§ and 203.

8 Rest. 2d § 203. Usury The validity of a contract will be sustained against the charge of usury if it provides for a rate of interest that is permissible in a state to which the contract has a substantial relationship and is not greatly in excess of the rate permitted by the general usury law of the state of the otherwise applicable law under the rule of § 188.

9 - two NYers enter into a loan contract in Illinois - interest is 19 %, the maximum allowed in Ill - the maximum in NY is 18% - what if the maximum in NY was 12%?

10 Two NYers contract in NY to ship goods in NY Under NY law the receiving party is excused from paying until they are received Under Japanese law must pay unless actual breach is clear Can the parties say Japanese law apply with respect to the issue?

11 Rest 2d § 187. Law Of The State Chosen By The Parties (1) The law of the state chosen by the parties to govern their contractual rights and duties will be applied if the particular issue is one which the parties could have resolved by an explicit provision in their agreement directed to that issue.

12 default rules v. mandatory rules

13 We think it clear that the federal conflicts rule will give effect to the parties intention that English law is to apply to the interpretation of the contract.

14 What if Japanese law considers the matter a default rule, but New York law considers a mandatory rule?

15 Whether the parties could have determined a particular issue by explicit agreement directed to that issue is a question to be determined by the local law of the state selected by application of the rule of § 188. Usually, however, this will be a question that would be decided the same way by the relevant local law rules of all the potentially interested states. On such occasions, there is no need for the forum to determine the state of the applicable law.

16 Masser and NYer orally agree in NY to a K Orally agree that Mass law applies – Mass has no statute of frauds K would be considered valid – NY has a statute of frauds K would be considered in valid NY ct adjudicates Can it use choice of Mass law to validate K? Mustnt it decide if there is a valid K first?

17 Under the law of Kirgizstan no agreement is necessary for a K between husband and wife Husband can simply say the terms of the contract two times (and it must be commercially reasonable) Kirgiz husband and NY wife or in NY Husband says terms of K two times and then says that Kirgiz law applies NY ct adjudicates

18 Seigelman v. Cunard White Star Line (2d Cir 1955)

19 187(3) In the absence of a contrary indication of intention, the reference is to the local law of the state of the chosen law.


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