1. CONFLICT OF LAWS Unit 28

2. Preview TermsDefinitions “Foreign law” Jurisdiction Choice of applicable law Principles of the choice of law Rome Convention (1998) Legal terms Exercises

3. Terms Conflict of Laws Private International Law

4. Terms Private international law: first used by Joseph Story in Commentaries on the Conflict of Laws foreign and domestic, in regard to contracts, rights, and remedies, and especially in regard to marriages, divorces, wills, successions, and judgments. (1834) Conflict of Laws: Ulrich Huber, De Conflictu Legum Diversarum in Diversis Imperiis (1689)

5. Terms Within local federal systems, where inter- state legal conflicts require resolution (US), the term "Conflict of Laws" is preferred because such cases are not an international issue.

6. Definitions That part of private law which deals with foreign relations

7. Definitions The part of the national law of a country that establishes rules for dealing with cases involving a foreign element (i.e. contact with some system of foreign law)

8. Foreign law The system of a foreign state or of a law district The law of Scotland, Northern Ireland, the Channel Islands, and Isle of Man – a separate foreign law Also: the law of each of the American or Australian states or Canadian provinces

9. Example If a contract is made in England but is to be fulfilled abroad, it will be necessary to decide which law governs the validity of the contract

10. Examples A contract between an English and a French person to be performed partly in England and partly in France or a third country A tort case where an English defendant’s conduct in New York caused injury to a Mexican visitor there

11. Examples A case where the English court has to decide on the validity of a marriage celebrated in France between and English woman and an Egyptian man

12. Conflict of laws Where there is a conflict of laws, two main questions arise: 1. does the forum in question have jurisdiction to deal with the matter; 2. if it has jurisdiction, what law shall be chosen to apply to the matter?

13. Jurisdiction: Maharanee of Baroda v. Wildenstein (1972) The plaintiff, a French resident, purchased a painting from the defendant, an international art dealer also resident in France The painting – allegedly by Boucher

14. Jurisdiction: Maharanee of Baroda v. Wildenstein When Maharanee discovered the painting was probably not by Boucher, she commenced an action for rescission of the contract of sale by serving a writ on the defendant while he was on a brief visit to England She wished to sue in England because there might be problems in having her expert evidence admitted in France

15. Jurisdiction: Maharanee of Baroda v. Wildenstein The problem: should an English court exercise jurisdiction to hear a case that involved only the most tenuous connection with England

16. Choice of law If the English court has jurisdiction: will it apply the rules of English law or those of a foreign country with which the case has connections

17. Choice of law Maharanee: the English court decided it had jurisdiction; Next decision: whether the legal issue (misrepresentation leading to rescission) was to be governed by English law (lex fori) or by French law

18. Examples Formal validity of a marriage – governed by the law of the country where marriage was celebrated Material validity of a contract – governed by the law chosen by the parties Title to immovable property – governed by the law of the country where the property is situated

19. Recognition and enforcement of foreign judgements A husband and wife living in England are Muslims; the husband pays a visit to a Muslim country of which he is a citizen where he divorces his wife under the Islamic law by declaring three times that he divorces her Is the divorce effective in England?

20. Choice of law The body of rules indicating which territorial system of law should be chosen for the adjudication of a case having contacts with more than one territory

21. Choice of law rules Structured to lead to the application of a law which has a close connection with either the parties of the cause of action

22. Renvoi Doctrine whereby courts of one country apply the law of another country in resolving a legal dispute

23. Example Under English rules, if a person dies intestate, the succession to his property is governed by the law of the domicile country Under Italian rules, the succession is governed by the intestator’s nationality If an English national dies intestate while domiciled in Italy, what renvoi problem will arise?

24. Answer English law will refer the matter to the law of his domicile (Italian law), while Italian law will refer the matter to the law of his nationality (English law)

25. Lex personalis 1) The personal law (lex personalis) by which the plaintiff or defendant is governed; the personal law may be determined either by the law of the party's place of domicile (lex domicilii) or by his national law (lex ligeantiae);

26. Lex actus (2) the law of the place where obligation was established, for instance, the place where the contract was concluded;

27. Lex loci solutionis (3) the law of the place where the legal act is to be carried out, for instance, the fulfillment of a contract;

28. Lex loci celebrationis The formalities of a marriage are governed by the law of the place where the marriage ceremony was conducted

29. Lex loci situs (4) the law of the place of situation of the property forming the subject matter of the dispute (lex situs); The law of the place where an object is situated; governs the right to possession of immovables

30. Lex fori The law of the forum or court governs matters of procedure, the mode of trial, evidence, remedies

31. Lex causae The system of law (usually foreign) applicable to the case in dispute; substantive rules

32. Lex domicilii The law of the country of domicile determines such matters as capacity to make a will, the validity of a will; consent to marriage, marriage contract

33. Lex loci contractu The law of the place where a contract was made Formal requirements of a contract

34. The Hague Conference on Private International Law formed in 1893 to "work for the progressive unification of the rules of private international law". pursued this goal by creating and assisting in the implementation of multilateral conventions promoting the harmonisation of conflict of law principles about 30 international conventions focusing on the rules of conflict of laws 74 state members

35. Rome Convention (1998) 1. The rules of this Convention shall apply to contractual obligations in any situation involving a choice between the laws of different countries.

36. Rome Convention (1998) Freedom of choice 1. A contract shall be governed by the law chosen by the parties. The choice must be expressed or demonstrated with reasonable certainty by the terms of the contract or the circumstances of the case. By their choice the parties can select the law applicable to the whole or a part only of the contract.

37. Rome Convention (1998) Article 4 Applicable law in the absence of choice 1. To the extent that the law applicable to the contract has not been chosen in accordance with Article 3, the contract shall be governed by the law of the country with which it is most closely connected.

38. International instruments The Vienna Convention on the International Sale of Goods (1988) Rome Convention on the the Law (1980) Applicable to Contractual Obligations UNIDROIT (The International Institute for the Unification of Private Law ): 63 Member States

39. Summary Conflict of laws (private international law): private law containing a foreign element Choice of laws Choice of forum

40. Legal terms The act of giving a judgement or of deciding a legal problem: Adjudication The power of a court to hear and decide a case or make a certain order Jurisdiction

41. Put the verbs in brackets into the appropriate forms: Each country _______(determine) the jurisdiction of its courts to entertain a civil law suit. In federal countries or unitary systems with strong traditions of regional or provincial jurisdiction (e.g., the United States, the United Kingdom, Canada, and Switzerland), it ______(become) necessary to have rules to determine in which jurisdiction a civil suit may ______(bring, passive). In some countries (e.g., Germany and Austria) the central (national) law ______(govern), while in others the constituent states may determine the jurisdiction of their courts themselves (e.g., the United States).

42. Fill in the missing words: enforcement, obligation, private, refers Private international law _____ to that part of the law that is administered between___ citizens of different countries or is concerned with the definition, regulation, and ____ of rights in situations where both the person in whom the right inheres and the person upon whom the _____ rests are private citizens of different nations.

43. dispute, governments, regulations, respect, set, transaction It is a set of rules and ____ that are established or agreed upon by citizens of different nations who privately enter into a ____ and that will govern in the event of a ____. In this ____, private international law differs from public international law, which is the ___ of rules entered into by the ____of various countries that determine the rights and regulate the relations of independent nations.

44. Key Private international law refers to that part of the law that is administered between private citizens of different countries or is concerned with the definition, regulation, and enforcement of rights in situations where both the person in whom the right inheres and the person upon whom the obligation rests are private citizens of different nations.

45. Key It is a set of rules and regulations that are established or agreed upon by citizens of different nations who privately enter into a transaction and that will govern in the event of a dispute. In this respect, private international law differs from public international law, which is the set of rules entered into by the governments of various countries that determine the rights and regulate the intercourse of independent nations.

46. Translation In international trade, there are numerous disputes involving one or even more countries. To be sure, such disputes are not related exclusively to ordinary commercial contracts. Let us recall tourists who have a traffic accident in a foreign country, or long-lasting disputes between spouses involving children or property

47. Every country, therefore, has a branch of law which is referred to as Conflict of Laws in England, to solve two important issues: which courts have jurisdiction in a dispute, and the law of which country should be applied to solve the dispute. Parties can agree to solve the dispute in a country which is not involved in the dispute.

48. Private international law (conflict of laws) is a system of law, which is part of State’s domestic law and which is utilised to determine how conflicts of laws and jurisdiction are to be resolved. Also distinct is foreign relations law, which “consists of rules of public international law which are binding upon (a State), and such parts of (a State’s) law as are concerned with the means by which effect is given to the rules of public internatinal law or which involve matters of concern to (a State) in the conduct of its relation with foreign States and governments or their nationals