Amiot v. Ames

• Decision Date: 28 February 1997
• Docket Number: No. 96-134,96-134
• Citation: 693 A.2d 675,166 Vt. 288
• Parties: Victor AMIOT v. David AMES.
• Court: Vermont Supreme Court

Page 675

693 A.2d 675

166 Vt. 288

Victor AMIOT v. David AMES.

No. 96-134.

Supreme Court of Vermont.

Feb. 28, 1997.

Stephen J. Craddock, Montpelier, and Jeffry W. White, Royalton, for plaintiff-appellee.

Richard H. Wadhams, Jr., and James E. Preston of Pierson, Wadhams, Quinn & Yates, Burlington, for defendant-appellant.

Before ALLEN, C.J., and GIBSON, DOOLEY, MORSE and JOHNSON, JJ.

GIBSON, Justice.

Defendant David Ames seeks interlocutory review of the Orleans Superior Court's denial of his motion to dismiss, ruling that Vermont law applies to a motor vehicle accident in Quebec between Canadian and Vermont residents. Defendant claims the court erred in refusing to follow the choice-of-law rule of lex loci delicti, which would require applying Quebec law. In the event this Court agrees with the trial court and adopts the Restatement's significant-relationship approach, defendant contends the trial court erred in concluding that Vermont law applies. We affirm the court's use of the significant-relationship approach to choice of law, but because of the sparseness of the factual record, we remand for the trial court to make the choice-of-law determination following development of an evidentiary record.

In November 1992, defendant Ames struck plaintiff Victor Amiot's vehicle, in which plaintiff was a passenger, while plaintiff's vehicle was stopped at Canadian customs just across the Quebec-Vermont border. Plaintiff, who is a resident of Alberta, Canada, had just left Vermont and entered Quebec en route from New Brunswick to Alberta. Plaintiff alleges that defendant, a resident of Vermont, suffered a complication from diabetes while driving in Vermont and consequently lost control of his car, missed his exit, and crossed the border, striking plaintiff's vehicle. As a result of the accident, plaintiff incurred injuries and was forced into premature retirement.

In September 1995, defendant filed a motion to dismiss, asserting that under Vermont's choice-of-law doctrine either Quebec or Alberta law must be applied to the suit. ¹ Because Alberta law would require application of Quebec law and because Quebec statutorily limits liability, defendant alleges that plaintiff would have no right to recover damages under Vermont law. In January 1996, the court denied defendant's motion to dismiss. The court predicted that Vermont would no longer automatically apply the substantive law of the state or country where the accident occurred and would instead adopt the significant-relationship approach. Under this approach, the court concluded that Vermont had the most significant relationship with the incident. This interlocutory appeal followed.

I.

A motion to dismiss for failure to state a claim upon which relief can be granted, V.R.C.P. 12(b)(6), should not be granted unless "it appears beyond doubt" that there exist no facts or circumstances that would entitle the plaintiff to relief. Levinsky v. Diamond, 140 Vt. 595, 600-01, 442 A.2d 1277, 1280-81 (1982). In reviewing disposition of a motion to dismiss, we must assume as true all factual allegations pleaded by the nonmoving party. Association of Haystack Property Owners v. Sprague, 145 Vt. 443, 444, 494 A.2d 122, 123 (1985). All reasonable inferences that can be drawn from the nonmoving party's pleadings are accepted, and all contravening assertions in the movant's pleadings are assumed to be false. White Current Corp. v. State, 140 Vt. 290, 292, 438 A.2d 393, 394 (1981) (per curiam), overruled on unrelated grounds by Soucy v. Soucy Motors, Inc., 143 Vt. 615, 471 A.2d 224 (1983).

Defendant first argues that the trial court erred in not following the doctrine of lex loci delicti, whereby Quebec law would apply, noting that we have resolved past choice-of-law issues in tort actions by holding that the rights and liabilities of the parties are determined by the laws of the state or country in which the incident occurred. See Goldman v. Beaudry, 122 Vt. 299, 301, 170 A.2d 636, 638 (1961); Brown v. Perry, 104 Vt. 66, 71, 156 A. 910, 913 (1931). But Goldman was decided under the first Restatement of Conflict of Laws, which endorsed lex loci. 122 Vt. at 301, 170 A.2d at 638. Since that time, we have not had occasion to revisit the issue, although we have acknowledged the federal courts' predictions that we would abandon lex loci in favor of a more flexible approach. Calhoun v. Blakely, 152 Vt. 113, 116 n. 2, 564 A.2d 590, 592 n. 2 (1989); see, e.g., In re Air Crash Disaster, 399 F.Supp. 1106, 1111 (D.Mass.1975).

Since the decision in Goldman, the Restatement (Second) of Conflict of Laws has abandoned the doctrine of lex loci in tort actions and adopted the approach that rights and liabilities should be governed by the state that has the most significant relationship to the occurrence and the parties. Restatement (Second) of Conflict of Laws 413 (1971). This reform reflects changes in our society, where state and national boundaries have become less significant as people become more mobile and where judges are better prepared to consider the policies and values that underlie choice-of-law decisions. Id.

In 1968, we adopted the significant-contacts approach of the Restatement (Second) for choice-of-law decisions in contract cases. See Pioneer Credit Corp. v. Carden, 127 Vt. 229, 233, 245 A.2d 891, 894 (1968). Likewise, today we adopt the Restatement (Second) approach that choice of law in a tort action that implicates states or countries beyond Vermont will be determined by which state or country has the most significant relationship to the occurrence and the parties. Restatement (Second) of Conflict of Laws § 145(1). We overrule our prior cases to the extent they hold to the contrary.

Anticipating that this Court might adopt the significant-relationship theory of choice of law, defendant argues that the trial court erred in concluding that Vermont law would apply. In a personal injury action, the state or country ² with the most significant relationship will usually be that where the injury occurred, see, e.g., Glasscock v. Miller, 720 S.W.2d 771, 774, 776 (Mo.Ct.App.1986) (court should have applied Colorado law where parties resided in Missouri but injury and conduct occurred in Colorado), unless some other jurisdiction has a more significant relationship, as determined by the principles stated in § 6. Restatement (Second) of Conflict of Laws § 146. A more significant relationship often exists where the place of injury has little relationship to the parties or the place where the causative conduct occurred. Id. § 146 cmt. c; see Gordon v. Kramer, 124 Ariz. 442, 604 P.2d 1153, 1158 (Ct.App.1979) (court erred in applying Utah law where, although accident occurred in Utah, Utah had no interest in occurrence or parties).

Where the place of injury has little relationship to the parties or causative conduct, determining the jurisdiction with the most significant relationship is guided by the general choice-of-law principles of §§ 6 and 145. Factors to consider include:

(a) the needs of the interstate and international systems,

(b) the relevant policies of the forum,

(c) the relevant policies of other interested states and the relative interests of those states in the determination of the particular issue,

(d) the protection of justified expectations,

(e) the basic policies underlying the particular field of law,

(f) certainty, predictability and uniformity of result, and

(g) ease in the determination and application of the law to be applied.

Restatement (Second) of Conflict of Laws § 6. In assessing these factors, the trial court should consider contacts relevant to the incident, including "(a) the place where the injury occurred, (b) the place where the conduct causing the injury occurred, (c) the domicil, residence, nationality, place of incorporation and place of business of the parties, and (d) the place where the relationship, if any, between the parties is centered." Id. § 145(2).

But not all § 6 factors carry equal weight. The protection of justified expectations, policies underlying the field of law, and certainty, predictability, and uniformity are less important in the field of torts, with the remaining factors assuming greater importance. Id. § 145 cmt. b; see, e.g., Brown v. DSI Transps., Inc., 496 So.2d 478, 482-83 (La.Ct.App.1986) (focus is on needs of interstate systems and interests and policies of potential states in negligence action; § 6(2)(d), (e), (f) factors are of minor importance). In addition, a court may decide that the law governing the standard of conduct is different from that governing damages. Restatement (Second) of Conflict of Laws § 171 & cmt. b; see Thomas v. Hanmer, 109 A.D.2d 80, 489 N.Y.S.2d 802, 805 n. * (1985).

The sparsity of the record prevents us from deciding which law should apply. The parties agree in their pleadings that plaintiff is a resident of Alberta and defendant is a resident of Vermont. But the parties dispute (and the trial court did not hear evidence on) other factual issues, such as the location of the conduct that led to the injury. Therefore, we remand the case for the court to determine which jurisdiction has the most significant relationship to the event. Cf. Godino v. Cleanthes, 163 Vt. 237, 239, 656 A.2d 991, 992 (1995) (preferable for trial court to conduct evidentiary hearing on merits of Rule 12(b) motion where there are disputed issues of fact); see also Icicle Seafoods, Inc. v. Worthington, 475 U.S. 709, 714, 106 S.Ct. 1527, 1530, 89 L.Ed.2d 739 (1986) (where trial court failed to make findings of fact essential to proper resolution of legal question, proper course is to remand for court to make findings). The trial court will have to choose the appropriate law guided by the above principles after the factual record is further developed.

II.

The question remains as to who should decide the factual basis to which law applies--the judge or the jury. In a persuasive analysis of this issue, the ...