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Conflict of Laws Teaching Material Conflict of Laws Teaching Material Sponsored By Justice and Legal System Research Institute Prepared by: Araya Kebede, Mekelle University Faculty of law & Sultan Kassim, Haramaya University Faculty of law 2009 A D D I S A B A B A E THIOPIA Acknowledgements The writers would like to acknowledge the authors and publishers whose publications are used in the preparation of this material. More over we would like to extend our thanks to Justice and legal systems institute who facilitated the preparation of this material. We would like to extend our sincere appreciation to those who have assisted us in developing this teaching-learning material. Table of Contents Unit One : General Introduction to Conflicts…………………………..………………...........1 1.1. Nomenclature…………………………………………………….…………………..........1 1.2. Definition and Analysis………………..………………………………………………….2 1.3. Nature……………...…………………………………………………….………………...3 1.4. Scope………………………………………………………………………….…………...5 1.5. Raison d’être……………….………………………………………………………….......8 1.6. Functions……………………………………………………………………….………….9 1.7. Development of Conflicts Theories: General…………………...……………………….13 1.8. Conflict of Laws In Ethiopia……………………………………………………….……23 1.9. Summary…………………………………………………………………..……………..29 1.10. Discussion Questions...…………………………………………………………………..30 2. Unit two: Adjudicatory/Judicial Jurisdiction.....................................................................31 2.1. Meaning……………………………………………………………………………...…..31 2.2. Theories or Bases of Jurisdiction………………………………...……………………....33 2.2.1. The Territorial Power or Power or Territorial Theory………………………………34 2.2.2. The Minimum Contact Theory……………………………….……………………..35 2.2.3. The Fairness Theory………………………………………….……………………..36 2.2.4. Domicile, Residence, Nationality as a Basis of Judicial Jurisdiction……………….38 2.2.5. Jurisdiction Based on onsent/Submission……………………………….……….…40 2.3. General and Special Jurisdiction………………………………………………………....45 2.4. Exclusive Jurisdiction………………………………………..…………………………..46 2.5. State and Federal Courts’ urisdiction…………………………………………………....47 2.6. Interstate Choice of Jurisdiction………………………………..………………………..56 2.7. Jurisdiction Related Basic Constitutional Guarantees……………………………..…….58 2.8. Suits Between Permanent Residents of Different States………………………………...59 2.9. Limitations on the Exercise of Judicial Jurisdiction…………………………..…………61 2.10. Choice of Jurisdiction Vis-avis Choice of Law………………………………………….73 2.11. Judicial Jurisdiction in Ethiopia………………………….…….……………………...…75 2.12. Summary…………………...………………………………………...…………………..96 2.13. Discussion Questions………………………………………………………………….....97 I 3. Unit Three: Choice of Law………………………………………………..……………....98 3.1. Methods……………………………………...……………………….…………………98 3.2. The General Part of Choice of law Process…………………………………………….101 3.2.1. Characterization……………………………………………………………………101 3.2.2. Renvoi………………………………………………….…………………………..107 3.2.3. Public Policy and rules of Immediate application…………………………...…….111 3.2.4. The Incidental Question………………………………………..…………………..114 3.2.5. Foreign Law: Status, Notice and Proof…………………………………………….116 3.2.6. Evasion/Fraud…………………………………..………………………………….119 3.3. Choice of Law Process and Interstate Relations: US v. Ethiopia....................................122 3.4. Summary……………………………………………………..…………………………126 3.5. Discussion Questions……………………………………………………...……………127 4. Unit Four: Recognition and Enforcement of Foreign Judgments and Arbitral awards...................................................................................................................................128 4.1. Introduction………………………………….……………………….…………………128 4.2. Analysis of the Law…………………………………………………………………….130 4.3. Modes of Execution of Foreign judgments……………………………………………..131 4.4. The Case of Arbitral awards……………………………………………………………147 4.5. Summary………………………………………………………..………………………171 4.6. Discussion Questions……………………………………………...……………………171 Part II: Application of Conflict of Laws in Special Area of Laws………………………….172 5. Unit Five: Contractual Obligations…………………………………………………...….173 5.1. Introduction……………………………………………..………………………………173 5.2. Choice of Applicable Law in Contract………………………………………………....174 5.2.1. Doctrine of the Proper law of Contract………………………………………….…175 5.2.2. The proper Law of the Contract in the Ethiopian Conflict of Law………………..203 5.2.3. Particular Aspects of the Contract…………………………………………………208 5.3. Protected Contracts……………………………………………………………………..216 5.4. Rules under Federal Draft Conflict of Laws……………………………………………225 5.5. Summary………………………………………………………………………………..237 5.6. Review Questions………………………………………………………………………239 6. Unit six: Non – Contractual Obligations……………………………………………..….243 6.1. Introduction………………………………………...…………………………………..243 6.2. The Main Rules Governing Choice of Law in Tort…………………………………….244 II 6.2.1. The Choice of Law in Tort : the US Approach Under the Second Restatement…..245 6.2.2. The Approach Under Rome II Proposal…………………………………………...249 6.3. Rules Governing Choice of Law Under the Federal Draft Conflict of Laws ………….260 6.4. Particular Torts………………………………………………………………………....262 6.4.1. Personal Injuries and Damage to Property………………………………………...262 6.4.2. Unfair Competition……………………………………………..………………….262 6.4.3. Product Liability………………………………………………………………...…270 6.4.4. Defamation…………………………………………..…………………...………..273 6.5. Summary………………………………………………………………………………..280 6.6. Review Question……………………………………………………….………………283 7. Unit Seven: Property (Interstate and International)…………………………………....286 7.1. Introduction……………………………………………….…………….………………287 7.2. General Rules Governing Choice of Law in Property………………………………….287 7.3. Particular Rules Governing Dealings With Movable and Immovable…………………290 7.3.1. Conveyances………………………………….……………………………………291 7.3.2. Encumbrances ……………………………………………………………………..302 7.4. Choice of Law Rules Governing Succession on Death………………………………...309 7.4.1. Succession to Movables………………………………………………………..…..309 7.4.2. Succession to Immovable………………………………………………...……….317 7.5. Rules Governing Choice of Law in Property Under the Federal Conflict of Law……..328 7.6. Summary……………………………………………………..…………………………332 7.7. Review Questions………………………………………………………………………336 8. Unit Eight: Status…………………………………………………………………………340 8.1. General Introduction on Status…………………………………………………………340 8.2. Law of Marriage………………………………………………………………………..345 8.2.1. Introduction………………………………………………………………………..345 8.2.2. Formal Validity……………………………………………………………………345 8.2.3. Essential Validity …………………………………………………………………347 8.2.4. Characterization as to formal and Essential Validity……………………………...363 8.2.5. Policy as to Marriage………………………………………………………………364 8.2.6. Effects of Marriage…………………………………………………………...……366 8.3. Law of Divorce…………………………………………………………………………370 8.4. Summary………………………………………………………………………………..375 8.5. Review Questions………………………………………………………………………376 III 9. Unit Nine: Agency, Partnerships and Companies………………………………………379 9.1. General Introduction……………………………………………………………………379 9.2. Agency………………………………………………………………………………….379 9.2.1. Relation ship of the Principal and Agent…………………………………………..379 9.2.2. Contractual Liability of Principal to Third Person………………………………...384 9.2.3. Ratification by Principal of Agent’s Act…………………………………………..387 9.3. Partnerships……………………………………………………………………………..389 9.3.1. Relationship of Partners Inter se…………………………………………………...389 9.3.2. Contractual Liability of Partnership, Partners and Third Person…………………..390 9.4. Companies………………………………………………………………………………393 9.4.1. Creation, Recognition and Dissolution…………………………………………….393 9.4.2. Corporate Powers and Liabilities…………………………………………………..400 9.5. Summary ……………………………………………………………………………….404 9.6. Review Questions……………………………………………………………………....405 References……………………………………………………………………………………...407 IV Conflict of Laws Teaching Material Unit One General Introduction to Conflicts Unit Objectives By the end of this unit, students are expected to explain: Why the discipline is commonly known by two names; The main elements of the definition used in this material; The term „foreign element‟; The points that characterize the discipline; The main parts of Conflict of laws (the scope); How conflicts questions do arise; Why Ethiopian courts do entertain cases containing foreign element; Why Ethiopian courts do apply foreign laws to solve conflicts cases; Why Ethiopian courts do recognize and enforce foreign judgments and arbitral awards; Briefly the historical development of conflicts/choice of law theories; What our judges were doing in the absence of conflicts rules 1.1 Nomenclature Two names, neither of which are fully descriptive nor wholly accurate and precise but could be interchangeably used to designate the subject, are in common use viz. Private International Law and Conflict of Laws (also shortened Conflicts rules). The term private international law might connote that the subject somehow in the context of private disputes, partakes the affairs of the general law of nations. As to the other term besides indicating that laws do "conflict", it seems to assume the existence of laws of equal applicability, which is not necessarily the case. Moreover, it suggests that laws Araya Kebede and Sultan Kassim 1 Conflict of Laws Teaching Material "conflict" and by hypothesis there is a mechanism (e.g. of superior authority or law, while in fact there is no one) for the resolution of the conflict. One writer has also criticized the name "Conflict of laws" as a misleading one in the sense that the object of the subject is to eliminate any conflict between two or more systems of laws which
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