Iowa courts would block some foreign-law transfers and agreements

Courts, arbitration panels, tribunals, and state agencies would be barred from transferring a civil case when the transfer would lead to foreign law that violates or likely violates a fundamental constitutional right. Foreign law means the law or legal system of a place outside every U.S. state and territory, including international organizations, tribunals, and courts. The restriction applies when the foreign law would violate or likely violate a fundamental liberty, right, or privilege protected by the U.S. or Iowa Constitution. This rule applies to civil actions started on or after the act's effective date.

Courts would treat certain rulings, contracts, contract terms, and foreign-forum clauses as void and unenforceable when applying foreign law would deny a party a fundamental constitutional right. The rules cover rulings by Iowa courts, arbitration panels, tribunals, or agencies; contracts choosing foreign law; and contracts selecting a foreign court or forum. The foreign law must deny a party a fundamental liberty, right, or privilege protected by the U.S. or Iowa Constitution. A severable contract term may be treated separately from the rest of the contract. The provisions do not overturn existing Iowa Supreme Court precedent or govern internal religious matters. They do not apply when a business knowingly and voluntarily subjects itself to foreign law or a foreign forum, or when federal law preempts state law, including treaties and international agreements. These rules apply to contracts, arbitrations, civil actions, and administrative proceedings started on or after the act's effective date.