TORTS AND

DAMAGES
Conflict of Laws

12 October 2018

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 TORT

Is a legal wrong committed upon person or

property independent of a contract.
It includes all acts or omissions committed
through fault or negligence causing damage
to another, independent of a contract.

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 TORTS OR QUASI-DELICT

Article 2176, Civil Code

• “Whoever by act or omission causes damage
to another, there being fault or negligence, is
obliged to pay for the damage done.”

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ELEMENTS OF QUASI-DELICT

• Damages suffered by the plaintiff;

• Fault
or negligence of the defendant or person
to whose act he must respond;
• Causal Connection between the negligence
and the damages incurred; and
• No pre-existing contract between the parties.

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 NEGLIGENCE

Consists in the omission of the diligence

required by the nature of the obligation and
corresponds with the circumstances of the
persons, of the time and place.

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CONFLICT OF LAWS IN TORTS

• Arises when a foreign element is involved

• Cross-border torts
• Plaintiff and defendant are residents of different states
• Plaintiff and defendant are residents of the same states, but
place of injury is in another state
• Act causing an injury and injury is felt in different states
• Arises as States employ different approaches in resolving torts
cases

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 APPROACHES TO CONFLICTS’
TORTS

1. Lex Loci Delicti

• Vested rights doctrine
• Traditional rule that employs the law of the place
of injury
• The state where the damage or injury is
sustained has as much interest in redressing the
wrongs committed within its jurisdiction.
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 APPROACHES TO CONFLICTS’
TORTS
2. Governmental Interest Analysis Approach
•A three-tiered approach, involving examination of the
ff:
• Whether there is a difference in the law of
jurisdictions involved
• Whether there is a true conflict of law
• If true conflict exists, court applies the law of the
state whose interests is more impaired
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 APPROACHES TO CONFLICTS’
TORTS
3. Choice-influencing considerations approach
• Requires examination of the 5 factors:
1. Predictability of result;
2. Maintenance of the interstate and international
order;
3. Simplification of the judicial task;
4. Advancement of the forum’s governmental
interest;
5. Application of the better rule of law
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 APPROACHES TO CONFLICTS’
TORTS

4. Lex Fori
• Rightsand liabilities of the parties are
governed by the law of the forum

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 APPROACHES TO CONFLICTS’
TORTS
5. Most Significant relationship approach
• Law of the state which has the most
connection shall be applied in the resolution
of the conflict.
• The state with the most significant relation
to a claim is usually the state in which the
tort occurred
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 APPROACHES TO CONFLICTS’
TORTS

Points of Contact considered

(Restatement of Conflict of Laws)
• Place where the injury occurred;
• Place where the conduct causing the injury occurred;
• Domicile, residence, nationality, place of incorporation and
place of business of the parties; and
• The place where the relationship, if any, between the
parties is centred.

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 LEX LOCI DELICTI V. MOST
SIGNIFICANT RELATIONSHIP
Lex Loci Delicti
• Favoured due to:
• Simplicity, Ease of application, Stability, Predictability
• Disfavored due to:
• Inflexibility
• Does not respond to modern litigation

Most Significant Relationship

• Favoured due to:
• Responsiveness to modern times and litigation, flexibility, fairness and
judiciousness
• Disfavored for being eclectic:
• Tendency to ignore stare decisis, unpredictable judicial decisions
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 FUTURE SELECT PORTFOLIO
MANAGEMENT, INC. VS. TREMONT
GROUP HOLDINGS
Facts:
• Future Select is headquartered in Washington.
• Tremont is headquartered in New York.
• Future Select lost millions of investments and sued Tremont for violation of the Revised
Code of Washington, Negligence, and Negligent Misrepresentations.

Issue:
Whether New York or Washington law applies?

Held:
Washington law applies

Approach used: Most Significant relationship approach

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 FUTURE SELECT PORTFOLIO
MANAGEMENT, INC. VS. TREMONT
GROUP HOLDINGS
Based on the Restatement of Conflict of Laws, the court considered the ff:
1. The place where the plaintiff acted in reliance on the representations
2. The place where the plaintiff received the representations
3. The place where the defendant made the representations
4. The domicile, residence, nationality, place of incorporation, and place of business
of the parties
5. The place where a tangible thing, which is the subject of the transaction between
the parties, was situated at the time, and
6. The place where the plaintiff is to render performance under a contract that he
has been induced to enter by the false representations of the defendant.

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THANK YOU!!
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