Rethinking the Internal Affairs Rule
The internal affairs rule posits that a court should generally apply the law of the state in which an entity is incorporated to resolve questions relating to that entity’s internal affairs. These affairs encompass such matters as the election of directors, the rights of shareholders, and the fiduciary duties owed to shareholders. In a trio…
Continue ReadingFaux Forum Selection Clauses
In linguistics, a false friend (or faux ami) is a word from a different language that looks and sounds like a familiar word in English but, in fact, has a very different meaning. A classic example is the word “gift.” In English, the word means “present.” In German, the word means “poison.” These are not…
Continue ReadingAn Answer to the Billion-Dollar Choice-of-Law Question
On February 20, 2024, the New York Court of Appeals handed down its opinion in Petróleos de Venezuela S.A. v. MUFG Union Bank, N.A. The issue presented—which I described in a previous post as the billion-dollar choice-of-law question—was whether a court sitting in New York should apply the law of New York or the law…
Continue ReadingU.S. Supreme Court Decides Great Lakes
On February 21, 2024, the U.S. Supreme Court handed down its decision in Great Lakes Insurance SE v. Raiders Retreat Realty Company, LLC. The question presented was whether, under federal admiralty law, a choice-of-law clause in a maritime contract can be rendered unenforceable if enforcement is contrary to the “strong public policy” of the state…
Continue ReadingOral Arguments in Billion-Dollar Choice-of-Law Case
On January 10, 2024, the New York Court of Appeals heard oral arguments in Petroleos de Venezuela S.A. v. MUFG Union Bank, N.A. The issue presented in this case, as previously discussed here and here and here, is whether a U.S. court should apply the law of New York or the law of Venezuela to…
Continue ReadingChoice-of-Law Clauses and Marital Property Law
In a recent law review article, I criticized a unanimous decision of the Washington Supreme Court that enforced the choice-of-law clause in a contract to which only one spouse was a party to determine which jurisdiction’s law governed an issue relating to marital property. In this blog post, I first provide a concise account of…
Continue ReadingForum Selection Agreements as Indicators of Implied Choice of Law
Originally posted on the EAPIL blog on 31 August 2023, and currently updated in this blog. In a recent article, I explore what should be globally significant in a forum selection agreement as an indicator of the implied choice of law when the agreement omits a choice-of-law clause. This topic is in itself a very old one,…
Continue ReadingNew Empirical Study on CISG Litigation
There are a number of empirical studies about the United Nations Convention on Contracts for the International Sale of Goods (CISG). A recent intervention by Carolina Arlota and Brian McCall, When Federal Law Goes Unnoticed: Assessing the CISG’s Applicability Across U.S. Courts Based on an Empirical Research of Decisions from 1988 to 2020, in the…
Continue ReadingIncorporation by Reference and Choice of Law
The choice-of-law clause written into the contract of carriage for Delta Air Lines, Inc. (Delta) states that the agreement “shall be governed by and enforced in accordance with the laws of the United States of America and, to the extent not preempted by Federal law, the laws of the State of Georgia.” In a recent…
Continue ReadingParsing Invalidating Statutes (Part II)
In a prior post, I argued that the precise language used in state statutes purporting to invalidate choice-of-law clauses and forum selection clauses can have outsized effects in litigation. In this post, I continue this discussion by highlighting several statutes that purport to invalidate choice-of-law clauses in insurance contracts. Although these statutes all have the…
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