TIME:  You have three (3) hours to finish the exam. I have indicated how many minutes should be devoted to each question to ensure proper pacing.

SCORING:  This exam has four (4) pages, including this cover sheet. The total number of questions is nine (9). The total number of points for this exam is 100. Each question will indicate how many points it is worth. Pace accordingly.

RULES:  This is a limited open book exam. Commercial outlines, hornbooks, treatises etc. are not permitted in the examination. You may not access the internet for this examination. You may bring into the examination only the following materials:
1)  All materials assigned in this course, that is:
a) Currie, Kay & Kramer, Conflict of Laws (6th ed. 2001)
b) Reading materials for the course that were available off of Blackboard.
2) Any outline made by you or by a study group within which you participated.
3)  Your class notes.

Your exam (with this cover) must be returned with your answers.

Contact me if you perceive an ambiguity or error in a question. Should you feel ill or panicky in anyway, please immediately see Dean Jackson in room 107.

 
The choice-of-law approaches of the states mentioned in this exam should be assumed to be as follows:

Virginia        First Restatement
New York        Interest analysis as modified by the Neumeier rules
California        Interest analysis with Baxter’s comparative impairment approach as a resolution of true conflicts
Wisconsin        Leflar’s choice-influencing considerations approach
Michigan        Interest analysis with a lex fori approach to true conflicts, that is, a resolution of true conflicts in favor of Michigan law if Michigan has an interest
Illinois            Second Restatement
New Jersey        Second Restatement

1.    Plaintiff (a domiciliary of California) and Driver (a domiciliary of Michigan) got into a car accident in New York. Driver has automobile insurance through Insurer (incorporated in and having its principal place of business in Virginia). Driver and Insurer entered into their automobile insurance contract in Michigan. Plaintiff has chosen to bring her negligence action for damages from the accident in Virginia State Court as a “direct action” – that is, as an action against Insurer directly for damages coverable under Insurer’s insurance contract with Driver. Virginia and Michigan law allow direct actions. New York and California law do not. Briefly give any plausible reasons the Virginia state court might allow the direct action and any plausible reasons it might not allow it. Do not address constitutional restrictions on choice of law. [8 points – ca. 14 minutes]

2.    Plaintiff (a domiciliary of California) sues Defendant (a domiciliary of Virginia) in Virginia state court for damages from Defendant’s negligence in a car accident between the two in Wisconsin. California has no cap on damages for negligence. A Virginia statute states: “Damages for negligence under Virginia law may not exceed $25,000.” A Wisconsin statute states: “A court may not reward damages in excess of $25,000 for negligence.” The jury awards Plaintiff $50,000 in damages and the Virginia state court uphold the award. How can this result be justified? Do not address constitutional restrictions on choice of law. [6 points – ca. 11 minutes]

3.    Plaintiff (a New Jersey domiciliary) got into a car accident with Defendant (a New Jersey domiciliary) in Michigan. Plaintiff sues Defendant in negligence in New York state court. (Personal jurisdiction over Defendant was provided by tagging in New York.) New Jersey and New York tort law do not allow for non-economic damages in negligence cases. Michigan tort law allows non-economic damages. Plaintiff is asking for compensation for pain and suffering, which is a form of non-economic damages. Assuming Defendant is found liable, should the New York court allow such compensation and why or why not? Do not address constitutional restrictions on choice of law. [6 points – ca. 11 minutes]
 

4.    Plaintiff (a domiciliary of California) and Defendant (a domiciliary of Illinois) are driving in California when Defendant, the driver, runs into a tree. Plaintiff, who was a guest of Defendant in the car, sues Defendant for negligence in Michigan (where Defendant has some real property that provides the basis for personal jurisdiction for the suit). Defendant’s automobile insurance policy was entered into in Illinois with Insurer (incorporated in Illinois with its principal place of business in Illinois). California has a guest statute, prohibiting guests in cars from suing those who invited them for negligence. Illinois and Michigan have no such statute. Can Plaintiff’s action proceed and why or why not? Do not address constitutional restrictions on choice of law. [8 points – ca. 14 minutes]

5.    Plaintiff (a domiciliary of California) receives a judgment of $100,000 against Defendant (a domiciliary of Illinois) from a California state court for damages from Defendant’s negligence in a car accident in California. Four years later Plaintiff brings a suit on the California judgment in state court in Illinois. Plaintiff asks that the Illinois court attach property owned by Defendant and sell it in execution of the California judgment. The Illinois court dismisses the action, however, on the ground that it is beyond Illinois’s statute of limitations for executing judgments, which is three years. California’s statute of limitations on the matter is five years. Has the Illinois court acted unconstitutionally? [8 points – ca. 14 minutes]

6.    PlaintiffOne (a domiciliary of New Jersey) sues Defendant (a domiciliary of Illinois) in federal court in New Jersey for his damages in a three-car pileup in New Jersey and receives a judgment against Defendant of $100,000. PlaintiffTwo (a domiciliary of New Jersey), who was also part of the pileup, sues Defendant in state court in Illinois for his damages in the accident. New Jersey state procedure has a rule known as the “entire controversy doctrine.” According to this rule, if a suit is brought in New Jersey state court, all potential plaintiffs with causes of action that concern the same transaction or occurrence that is the subject matter of the suit must join the suit if they would be subject to personal jurisdiction in New Jersey. If they fail to join they will be barred from bringing their causes of action in a subsequent suit. Under Illinois procedural common law and federal procedural common law, the entire controversy doctrine does not exist. Defendant makes a motion to dismiss PlaintiffTwo’s suit because, according to the entire controversy doctrine, it should have been brought in PlaintiffOne’s suit in federal court in New Jersey. What result and why? [14 points –ca. 25 minutes] [NOTE: This is an ERIE question. Ignore if Erie was not covered this year.]
 

7.    PlaintiffInc (incorporated in New York with its principal place of business in New York) and DefendantInc (incorporated in Illinois with its principal place of business in Illinois) enter into a contract in New York in which PlaintiffInc is to build a hospital in Illinois for DefendantInc. The contract contains a New York choice-of-law clause, as well as a clause that obligates DefendantInc to pay PlaintiffInc’s attorney fees in the event that DefendantInc loses a suit concerning the contract. PlaintiffInc has no reciprocal obligation to pay DefendantInc’s attorney fees if DefendantInc wins a suit concerning the contract. Such a lopsided attorney fee clause is enforceable under New York law, but not under Illinois law, which requires attorney fee clauses in contracts to be reciprocal. PlaintiffInc sues DefendantInc in Illinois state court for breach of contract. Should the Illinois court rule that the attorney fee provision is enforceable, and why or why not? Do not address constitutional restrictions on choice of law. [14 points – ca. 25 minutes]

8.    Deceased, a domiciliary of Virginia, created a will in that state. The will gave all of her assets, including land in California, to her 12-year old daughter (Daughter). After creating the will, Deceased gave birth to a son. Under the law of Virginia, but not the law of California, the birth of a new child to a testator voids the testator’s will. After the birth of her child, Deceased then died, leaving no new will. Under both Virginia and California law, if Deceased had no valid will at the time of her death, her property goes to her husband (Husband). Husband brings a declaratory action in Virginia state court to determine who owns the California land, Husband or Daughter. How should the Virginia court rule? Do not address constitutional restrictions on choice of law. [16 points – ca. 29 minutes]

9.    Driver (a domiciliary of Michigan) rented a car in Michigan from Defendant Automobile Rental Co. (a California corporation with its principal place of business in California) and drove the car to New York to pick up his girlfriend, Plaintiff (a New York domiciliary), for a trip to Michigan via Virginia. While driving in Virginia with Plaintiff in the car, Driver had an accident that left Plaintiff a paraplegic. Plaintiff brought an action in California against Defendant arguing that Defendant is vicariously liable for Driver’s negligence, because it owned the car involved in the accident. Michigan and New York have both enacted statutes making the owner of a car liable for the negligence of those to whom the car is leased. The Michigan statute, unlike the New York statute, limits the owner’s liability to $20,000. Neither California nor Virginia has a vicarious liability statute, and so, under California or Virginia tort law, Defendant would not be liable to Plaintiff. Defendant makes a motion to dismiss Plaintiff’s complaint for failure to state a claim or, alternatively, a motion for summary judgment that Defendant is liable to Plaintiff for only $20,000. How should the California court decide the motions? Do not address constitutional restrictions on choice of law. [20 points – ca. 36 minutes]