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The Role of Full Faith and Credit in Federal Jurisdiction

Published online by Cambridge University Press:  24 January 2025

B. O’Brien
B. O’Brien*
Affiliation:
Monash University
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Abstract

When the legal systems of two or more States apply to the same fact situation, they may prescribe, with respect to those facts, inconsistent sets of rights and liabilities. In this Article Mr O'Brien examines the role of full faith and credit in resolving the conflict. He concludes that while it is theoretically possible for full faith and credit to resolve the conflict, either on a substantive law basis or on a jurisdictional basis, the Courts have not been prepared to attribute to full faith and credit an operation which would enable it to perform either function. On the other hand, full faith and credit does perform a preparatory function in resolving this type of conflict by bringing such conflicts into federal jurisdiction wherein a resolution can ultimately be achieved.

Type
Research Article
Information
Federal Law Review , Volume 7 , Issue 2 , June 1976 , pp. 169 - 201
Copyright
Copyright © 1976 The Australian National University

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References

1 S. 118 of the Constitution provides that “Full faith and credit shall be given, throughout the Commonwealth to the laws, the public Acts and records, and the judicial proceedings of every State”.

2 Phillips, “Choice of Law in Federal Jurisdiction” (1961) 3 Melbourne University Law Review 170, 184.Google Scholar

3 Sykes, “Full Faith and Credit-Further Reflections” (1954) 6 Res Judicatae 353, 364.Google Scholar

4 Beach, “Uniform Interstate Enforcement of Vested Rights” (1918) 27 Yale Law Journal 656, 664-666.CrossRefGoogle Scholar The judgment of Jackson J. in First National Bank v. United Air Lines (1952) 342 U.S. 396, 400-401 could be regarded as a partial adoption of the “vested rights” theory in full faith and credit.

5 Currie, Selected Essays on the Conflict of Laws (1963) 188-282.CrossRefGoogle Scholar

6 Nygh, Conflict of Laws in Australia (2nd ed. 1971) 729-748.CrossRefGoogle Scholar

7 Dixon, Jesting Pilate (1965) 183.Google Scholar

8 Hohfeld, “Fundamental Legal Conceptions as applied in Judicial Reasoning” (1917) 26 Yale Law Journal 710, 710.CrossRefGoogle Scholar

9 Prentis v. Atlantic Coast Line Co. (1908) 211 U.S. 210, 226 per Holmes J.;Waterside Workers' Federation of Australia v. J.W. Alexander Ltd (1918) 25 C.L.R. 434, 463 per Isaacs and Rich JJ.

10 Sykes, loc. cit.

11 Beach, loc. cit.

12 Slater v. Mexican National Railroad Co. (1904) 194 U.S. 120, 126.

13 See Cheatham, “American Theories of Conflict of Laws: Their Role and Utility” (1945) 58 Harvard Law Review 361, 363-370.CrossRefGoogle Scholar

14 Macleod v. Attorney-General for New South Wales [1891] A.C. 455; Ray v. M'Mackin (1875) 1 V.L.R. (L.) 274; New York Life Insurance Co. v. Dodge (1918) 246 U.S. 357.

15 Croft v.Dunphy [1933] A.C. 156; Griffin v. Mccoach (1941) 313 U.S. 498. See also Currie, op. cit. 237.

16 (1924) 33 Yale Law Journal 457, 459, 471, 484-485.

17 E.g. Broken Hill South Ltd v. Commissioner of Taxation (N.S.W.) (1937) 56 C.L.R. 337.

18 (1952) 342 U.S. 396.

19 Id. 401.

20 Alternatively the statement may reflect the same approach taken by Napier J. in In Re E. & B. Chemicals & Wool Treatment Pty Ltd [1939] S.A.S.R. 441, 443-444.

21 Cook, “The Logical and Legal Bases of the Conflict of Laws” (1924) 33 Yale Law Journal 457, 478CrossRefGoogle Scholar; Musgrave v. The Commonwealth (1937) 57 C.L.R. 514, 531-532 per Latham C.J.; Deputy Federal Commissioner of Taxation v. Brown (1958) 100 C.L.R. 32, 39 per Dixon C.J.; Holman v. Johnson (1775) 1 Cowp.341, 343, 98 E.R. 1120, 1121 per Lord Mansfield.

22 See generally the writer's article, “The Law Applicable in Federal Jurisdication”, to be published in a forthcoming issue of the University of New South Wales Law Journal.

23 James v. South Australia (1927) 40 C.L.R. 1, 19 per Isaacs A-C.J. and Powers J.

24 Jackson, “Full Faith and Credit—The Lawyer's Clause of the Constitution” (1945) 45 Columbia Law Review 1, 27CrossRefGoogle Scholar; Pryles, and Hanks, Federal Conflict of Laws (1974) 117 fn. 55Google Scholar; Lane, The Australian Federal System (1972) 527-536.Google Scholar

25 Culp, (ed.), Selected Readings on Conflict of Laws (1956) 24-26.Google Scholar

26 Culp, loc. cit.

27 Article IV.

28 Article IV Section 1.

29 Jackson, “Full Faith and Credit—The Lawyer's Clause of the Constitution” (1945) 45 Columbia Law Review 1CrossRefGoogle Scholar; First National Bank v. United Air Lines (1952) 342 U.S. 396, 400; Wells v. Simonds Abrasive Co. (1953) 345 U.S. 514, 520-522.

30 (1932) 286 U.S. 145.

31 Id. 163 per Stone J.

32 (1953) 345 U.S. 514.

33 Id. 516.

34 New York Life Insurance Co. v. Dodge (1918) 246 U.S. 357; Pacific Employers Insurance Co. v. Industrial Accident Commission (1939) 306 U.S. 493; Home Insurance Co. v. Dick (1930) 281 U.S. 397.

35 (1955) 349 U.S. 408.

36 Id. 416. The inconsistency in the application of full faith and credit can be seen by comparing Carroll v. Lanza with Bradford Electric Light Co. v. Clapper (1932) 286 U.S. 145. See also Jackson, “Full Faith and Credit-The Lawyer's Clause of the Constitution” (1945) 45 Columbia Law Review 1, 27.CrossRefGoogle Scholar

37 Pryles and Hanks, op. cit. 63-66.

38 (1965) 114 C.L.R. 20.

39 (1870) L.R. 6 Q.B. 1; Varawa v. Howard Smith Co. Ltd (1911) 13 C.L.R. 35, 69.

40 The judgments of Lord Hodson and Lord Wilberforce in Boys v. Chaplin [1971] A.C. 356, 377-378, 387-389 which were subsequently adopted by Adam J.in Corcoran v. Corcoran [1974] V.R. 164, 169-170.

41 Harris v. Harris [1947] V.L.R. 44, 56-57.

42 (1933) 48 C.L.R. 565.

43 Id. 576-577 per Rich and Dixon JJ., 587-588 per Evatt J.

44 Cowen, “Full Faith and Credit The Australian Experience” in Else-Mitchell (ed.), Essays on the Australian Constitution (2nd ed. 1961) 293, 325Google Scholar. See also Sykes, “Full Faith and Credit-Further Reflections” (1954) 6 Res Judicatae 353, 367. However, this view was not favoured by the High Court in Anderson v. Eric Anderson Radio & T.V. Ltd (1965) 114 C.L.R. 20.

45 Croft v. Dunphy [1933] A.C. 156; Mynott v. Barnard (1939) 62 C.L.R. 68.

46 Sykes, “Full Faith and Credit-Further Reflections” (1954) 6 Res Judicatae 353, 365.Google Scholar

47 [1962] A.C. 220.

48 Id. 268. Millar v. Taylor (1769) 4 Burr. 2303, 2312, 98 E.R. 201, 206 per Willes J.; Campbell, “Suits Between the Governments of a Federation (1971) 6 Sydney Law Review 309, 311.Google Scholar

49 James v. The Commonwealth (1939) 62 C.L.R. 339, 362 per Dixon J.

50 (1951) 84 C.L.R. 629.

51 [1905] V.L.R. 612.

52 Permanent Trustee Co. (Canberra) Ltd v. Finlayson (1968) 122 C.L.R. 338, 343.

53 Dicey, and Morris, The Conflict of Laws (9th ed. 1973) r. 178(2) 938, 945 ff.Google Scholar This subrule is based upon the views of Lord Hodson and Lord Wilberforce in Boys v. Chaplin [1971] A.C. 356, 377-378, 387-389 which were subsequently adopted by Adam J. in Corcoran v. Corcoran [1974] V.R. 164, 169-170.

54 Sykes, “Full Faith and Credit-Further Reflections” (1954) 6 Res Judicatae 353.Google Scholar

55 [1939] S.A.S.R. 441.

56 Id. 443-444. See also First National Bank v. United Air Lines (1952) 342U.S. 396, 400 per Jackson and Minton JJ.; Wells v. Simonds Abrasive Co. (1953) 345 U.S. 514, 521-522 per Jackson, Black and Minton JJ.

57 Such rules have been described as “localising rules”: Kelly, Localising Rules in the Conflict of Laws (1974) 3-6.Google Scholar

58 Supra p. 170.

59 Supra pp. 173-174.

60 Sykes, op. cit. 364.

61 Hughes v. Fetter (1951) 341 U.S. 609; First National Bank v. United Air Lines (1952) 342 U.S. 396; Broderick v. Rosner (1935) 294 U.S. 629.

62 (1932) 286 U.S. 145.

63 The basis of jurisdiction was diversity of citizenship, hence the federal court applied the law of New Hampshire.

64 (1932) 286 U.S. 145, 163. The proper law of the contract was the law of Vermont. Hence the law of New Hampshire would enforce contractual defences available under Vermont law.

65 Id. 163-164.

66 (1955) 349 U.S. 408.

67 Id. 421 per Frankfurter, Burton and Harlan JJ.

68 (1935) 294 U.S. 532. Alaska was at that time a territory and not a state. Therefore this case concerned the Congressional implementing legislation, s. 1738 Title 28 United States Code, and not the Constitutional mandate.

69 Workmen's compensation actions are regarded as a hybrid class of actions falling between tort and contract: Nominal Defendant v. Bagofs Executor and Trustee Co. Ltd [1971] S.A.S.R. 346, 365-367 per Bray C.J. In this case since the proper law of the contract appears to be Alaskan and since the lex loci of the injury is Alaska, the conflicts rule of California would be to enforce the exclusive rights given under the Alaskan Act, both with respect to causes of action and defences.

70 (1935) 294 U.S. 532, 547-548.

71 (1954) 348 U.S. 66.

72 Id. 73 per Black J. See also Cardillo v. Liberty Mutual Insurance Co. (1947) 330 U.S. 469.

73 Pacific Employers Insurance Co. v. Industrial Accident Commission (1939) 306 U.S. 493, 502; Watson v. Employers Liability Assurance Corp. (1954) 348 U.S. 66, 72-73; Carroll v. Lanza (1955) 349 U.S. 408, 413-414.

74 (1974) 330 U.S. 469.

75 Id. 476.

76 Weintraub, Commentary on the Conflict of Laws (1971) 403Google Scholar; Sykes, reviewing Federal Conflict of Laws by Pryles and Hanks (1975) 10 Melbourne University Law Review 154, 155Google Scholar; Richards v. U.S. (1962) 369 U.S. 1, 15. See generally Currie, Selected Essays on the Conflict of Laws (1963) 188-282.CrossRefGoogle Scholar

77 Croft v. Dunphy [1933] A.C. 156; Broken Hill South Ltd v. Commissioner of Taxation (N.S.W.) (1937) 56 C.L.R. 337; Ex parte Iskra [1963] N.S.W.R. 1593; Welker v. Hewett (1969) 120 C.L.R. 503.

78 E.g. Welker v. Hewett (1969) 120 C.L.R. 503; Cox v. Tomat (1972) 126 C.L.R. 105.

79 Supra pp. 183-184.

80 Jackson, “Full Faith and Credit-The Lawyer's Clause of the Constitution” (1945) 45 Columbia Law Review 1, 26CrossRefGoogle Scholar: “That the Supreme Court should impose uniformity in choice-of-law problems is a prospect comforting to none, least of all to a member of that body”.

81 Livingston v. Commissioner of Stamp Duties (Qld) (1960) 107 C.L.R. 411, 421 per Dixon C.J.

82 Pryles, and Hanks, Federal Conflict of Laws (1974) 64-65.Google Scholar

83 E.g. Hughes v. Fetter (1951) 341 U.S. 609; First National Bank v. United Air Lines (1952) 342 U.S. 396; Broderick v. Rosner (1935) 294 U.S. 629; Converse v. Hamilton (1912) 224 U.S. 243.

84 Supra pp. 186-188.

85 (1912) 224 U.S. 243.

86 (1920) 252 U.S. 411.

87 Id. 415.

88 Id. 414; Carroll v. Lanza (1955) 349 U.S. 408, 415 per Frankfurter J.

89 Carroll v. Lanza (1955) 349 U.S. 408, 412 per Douglas J., 415 per Frankfurter J.

90 Wells v. Simonds Abrasive Co. (1953) 345 U.S. 514, 518-519.

91 Broderick v. Rosner (1935) 294 U.S. 629.

92 Bradford Electric Light Co. v. Clapper (1932) 286 U.S. 145, 160; Hughes v. Fetter (1951) 341 U.S. 609, 612.

93 Broderick v. Rosner (1935) 294 U.S. 629, 642.

94 Alaska Packers Association v. Industrial Accident Commission (1935) 294 U.S. 532, 547; Cardillo v. Liberty Mutual Insurance Co. (1947) 330 U.S. 469, 476; Richards v. U.S. (1962) 369 U.S. 1, 15; supra n. 76.

95 (1951) 341 U.S. 609.

96 Id. 618-619.

97 Id. 620.

98 (1965) 114 C.L.R. 20.

99 Amalgamated Society of Engineers v. Adelaide Steamship Co. Ltd (1920) 28 C.L.R. 129, 154.

1 Le Mesurier v. Connor (1929) 42 C.L.R. 481, 496; British Medical Association v. The Commonwealth (1949) 79 C.L.R. 201, 236; Queen Victoria Memorial Hospital v. Thornton (1953) 87 C.L.R. 144, 152.

2 Le Mesurier v. Connor (1929) 42 C.L.R. 481, 496; Ammann v. Wegener (1972) 129 C.L.R. 415, 422-423; Aston v. Irvine (1955) 92 C.L.R. 353, 363-366.

3 (1965) 114 C.L.R. 20.

4 Id. 25, 37, 45-46. The case thus appears to be a clear rejection of the application of the “vested rights” theory in full faith and credit: Beach, “Uniform Interstate Enforcement of Vested Rights” (1918) 27 Yale Law Journal 656, 664-666.CrossRefGoogle Scholar

5 [1971] A.C. 356.

6 Harris v. Harris [1947] V.R. 44; In the Will of Lambe [1972] 2 N.S.W.L.R. 273; Varawa v. Howard Smith Co. Ltd (1911) 13 C.L.R. 35, 69; Posner v. Collector for Inter-State Destitute Persons (Vic.) (1946) 74 C.L.R. 461, 479; In the Estate of Searle, Deceased [1963] S.A.S.R. 303; Anderson v. Eric Anderson Radio & T.V. Pty Ltd (1965) 114 C.L.R. 20, 46 per Windeyer J.

7 [1947] V.L.R. 44, 59.

8 Le Mesurier v. Le Mesurier [1895] A.C. 517, 540.

9 [1947] V.L.R. 44, 59.

10 (1929) 42 C.L.R. 481.

11 Id. 496. British Medical Association v. The Commonwealth (1949) 79 C.L.R. 201, 236; Queen Victoria Memorial Hospital v. Thornton (1953) 87 C.L.R. 144, 152.

12 Sykes, “Full Faith and Credit-Further Reflections” (1954) 6 Res Judicatae 353, 363.Google Scholar

13 Varawa v. Howard Smith Co. Ltd (1911) 13 C.L.R. 35, 69 per O'Connor J. Anderson v. Eric Anderson Radio & T.V. Pty Ltd (1965) 114 C.L.R. 20, 46 per Windeyer J.

14 Jackson, “Full Faith and Credit—The Lawyer's Clause of the Constitution” (1945) 45 Columbia Law Review 1, 27.CrossRefGoogle Scholar

15 Pryles, and Hanks, Federal Conflict of Laws (1974) 117 fn. 55.Google Scholar

16 Minutes of Evidence, Royal Commission on the Constitution of the Commonwealth (1929) 786 cited by the Commission in its Report (at 104).

17 The writer has elaborated upon this theme in an article entitled “The Law Applicable in Federal Jurisdiction”, to be published in a forthcoming issue of the University of New South Wales Law Journal. That power has been exercised in the enactment of ss. 79 and 80 of the Judiciary Act 1903-1973 (Cth).