Kearney v. Salomon Smith Barney, Inc.
Supreme Court of California
137 P.3d 914 (2006)
Kelly Kearney and other California residents (plaintiffs) filed a class action against Salomon Smith Barney (defendant), alleging Salomon secretly recorded phone calls between its Atlanta, Georgia brokers and California clients without the clients' knowledge, violating California's law requiring all parties to a call to consent to any recording. Salomon argued Georgia law, which permits recording with only one party's consent, should govern instead. The trial court agreed and dismissed the complaint; the court of appeals affirmed, applying Georgia law. The California Supreme Court granted review.
Whether a forum court should apply its own law if applying the law of another jurisdiction would significantly impair the interests of the forum state.