Civil Procedure

Plain English Breakdown

The bill summary and text do not provide specific enforcement mechanisms or penalties.

Tennessee Foreign Law Non-Recognition Act

This bill stops courts and other decision-making bodies in Tennessee from using foreign laws that violate U.S. or Tennessee constitutional rights.

What This Bill Does

• Prohibits a court, arbitration panel, administrative agency, or other tribunal in Tennessee from applying, enforcing, or basing a ruling or decision on any foreign law if the application of that foreign law would result in the violation of a right guaranteed by the U.S. Constitution or the Tennessee Constitution.
• Does not prohibit the recognition or enforcement of a foreign judgment or contract that complies with state and federal constitutional protections.
• Does not interfere with the application of tribal law, federal law, or the uniform commercial code where applicable.
• Prohibits an arbitration award from being confirmed or enforced in Tennessee if the decision is based on a foreign law that would violate U.S. or Tennessee constitutional rights.
• Declares any provision of an arbitration agreement requiring the use of foreign law inconsistent with constitutional protections as void and unenforceable.

Who It Names or Affects

• Courts, arbitration panels, administrative agencies, and other decision-making bodies in Tennessee.
• People involved in arbitration agreements that require the application of foreign laws.

Terms To Know

Tribal law

The legal system used by Native American tribes within their own territories.

Uniform Commercial Code (UCC)

A set of laws that standardize commercial transactions across different states in the U.S.

Limits and Unknowns

• The bill does not specify how it will be enforced or what penalties might apply.
• It is unclear if this act will affect existing foreign law cases currently being processed by Tennessee courts and agencies.

Official Summary Text

This bill prohibits a
court, arbitration panel, administrative agency, or other tribunal in this state
from
apply
ing
, enforc
ing
, or bas
ing
a ruling or decision on any foreign law, legal code, or system if the application of that foreign law, legal code, or system would result in the violation of a right guaranteed by the Constitution of the United States or the Constitution of Tennessee.
However, this prohibition does not
(
i
)
p
rohibit the recognition or enforcement of a foreign judgment or contract that complies with state and
federal constitutional protections or

(
ii
)
i
nterfere with the application of tribal law, federal law, or the uniform commercial code where applicable.

LIMITATION ON ARBITRATION AWARD BASED ON FOREIGN LAW

This bill prohibits an
arbitration award
from
be
ing
confirmed or enforced in this state if the decision is based in whole or in part on a foreign law that, if applied by a court in this state, would violate the rights of one of the parties under the United States Constitution or the Constitution of Tennes
see.

Any provision of an arbitration agreement that requires the application of foreign law in a manner inconsistent with constitutional protections is void and unenforceable.

Current Bill Text

SENATE BILL 2488
By Bowling

HOUSE BILL 2142
By Warner
HB2142
012459
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 20
and Title 29, relative to the application of foreign
law.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Tennessee Foreign Law Non-
Recognition Act."
SECTION 2. Tennessee Code Annotated, Title 20, Chapter 15, is amended by adding
the following as a new section:
20-15-107. Application of foreign law prohibited when contrary to constitutional
rights.
(a) A court, arbitration panel, administrative agency, or other tribunal in this state
shall not apply, enforce, or base a ruling or decision on any foreign law, legal code, or
system if the application of that foreign law, legal code, or system would result in the
violation of a right guaranteed by the Constitution of the United States or the Constitution
of Tennessee.
(b) This section does not:
(1) Prohibit the recognition or enforcement of a foreign judgment or
contract that complies with state and federal constitutional protections; or
(2) Interfere with the application of tribal law, federal law, or the uniform
commercial code where applicable.
SECTION 3. Tennessee Code Annotated, Title 29, Chapter 5, Part 1, is amended by
adding the following new section:
29-5-120. Limitation on arbitration award based on foreign law.

- 2 - 012459

(a) An arbitration award shall not be confirmed or enforced in this state if the
decision is based in whole or in part on a foreign law that, if applied by a court in this
state, would violate the rights of one (1) of the parties under the United States
Constitution or the Constitution of Tennessee.
(b) Any provision of an arbitration agreement that requires the application of
foreign law in a manner inconsistent with constitutional protections is void and
unenforceable.
SECTION 4. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.
SECTION 5. This act takes effect upon becoming a law, the public welfare requiring it.