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Conflict of Laws Keyed to Brilmayer
Lilienthal v. Kaufman
Citation:
239 Or. 1, 395 P.2d 543 (1964)Facts
Defendant, Kaufman, an Oregon resident, executed two promissory notes in favor of Plaintiff, Lilienthal, a California resident, in exchange for funds to finance a joint venture to sell binoculars. The promissory notes were executed and delivered in California. However, Lilienthal did not know that an Oregon court had previously declared Kaufman a spendthrift and placed him under guardianship. Lilienthal brought suit in Oregon state court against Kaufman to collect on the two promissory notes. Kaufman’s defense was that his guardian declared the obligations to Lilienthal void and that Oregon has a policy of voiding spendthrift’s contracts. Lilienthal argued that California law should apply because California does not recognize the disability of a spendthrift and the Oregon court is bound to apply the place of the making of the contract. The trial court found in favor of the Kaufman. Lilienthal appealed.
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