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MARGARITE AUTEN, Appellant, v. HAROLD AUTEN, Respondent.
Court of Appeals of New York
308 N.Y. 155; 124 N.E.2d 99; 1954 N.Y. LEXIS 930; 50 A.L.R.2d 246
Argued October 22, 1954.
December 31, 1954, decided
PRIOR HISTORY: [***1] Auten v. Auten, 281 App. Div. 740, reversed.
APPEAL from a judgment, entered December 1, 1953, upon an order of the Appellate Division of the Supreme Court in
the first judicial department, which (1) affirmed an order of the Supreme Court at Special Term (SCHREIBER, J.),
entered in New York County, granting a motion by defendant for summary judgment dismissing the complaint and (2)
granted leave to serve an amended complaint. (See 306 N.Y. 752.)

DISPOSITION: LEWIS, Ch. J., CONWAY, DESMOND, DYE, FROESSEL and VAN VOORHIS, JJ., concur.
Judgments reversed, etc.
CASE SUMMARY:

PROCEDURAL POSTURE: Plaintiff wife appealed from a judgment of the Appellate Division of the Supreme Court
in the First Judicial Department (New York), which affirmed the grant of defendant husband's motion for summary
judgment and dismissal of the complaint on the issue of payment of support and maintenance installments to plaintiff
under a separation agreement.
OVERVIEW: The parties married and lived in England. Defendant later obtained a Mexican divorce. Plaintiff went to
New York City to talk to defendant, which resulted in the separation agreement upon which the action was predicated.
Defendant was obligated to pay support to plaintiff and the children. The agreement also provided that the parties were
to continue to live separate and apart and not instigate any suits regarding the marriage or divorce. Plaintiff returned to
England and defendant failed to live up to his agreement. Plaintiff later filed a petition for separation in an English court
to enforce the agreement. Defendant was served with process in New York. Plaintiff brought suit when past efforts were
ineffective. Defendant claimed that the institution of the separation suit in England was a repudiation of the agreement
and effected a forfeiture of her right to any payments under it. The trial court granted defendant's cross motion for
summary judgment and dismissed the complaint. The lower court affirmed the decision. The court reversed the order
and held that the law of England controlled because it had the most interest in the problem and paramount control over
the legal issues.
OUTCOME: The court reversed the judgment and the matter was remitted for further proceedings.
CORE TERMS: separation agreement, repudiation, commencement, separation action, summary judgment, place of
performance, significant contacts, divorce, grouping, lived, matter in dispute, alimony, temporary, support and
maintenance, action to recover, abandoned, covenant, deserted, married, trip, general rules, center of gravity, rescission,
conclusive, paramount, effected, accrued, proceeded to trial, sole purpose, material breach

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308 N.Y. 155, *; 124 N.E.2d 99, **;
1954 N.Y. LEXIS 930, ***1; 50 A.L.R.2d 246
LexisNexis(R) Headnotes
Civil Procedure > Federal & State Interrelationships > Choice of Law > Forum & Place
Contracts Law > Contract Interpretation > General Overview
[HN1] All matters bearing upon the execution, the interpretation and the validity of contracts are determined by the law
of the place where the contract is made, while all matters connected with its performance are regulated by the law of the
place where the contract, by its terms, is to be performed.
Civil Procedure > Federal & State Interrelationships > Choice of Law > General Overview
Contracts Law > Breach > General Overview
Contracts Law > Performance > Accord & Satisfaction
[HN2] What constitutes a breach of the contract and what circumstances excuse a breach are considered matters of
performance, governable by the law of the place of performance.
Civil Procedure > Federal & State Interrelationships > Choice of Law > Significant Relationships
Criminal Law & Procedure > Jurisdiction & Venue > Conflicts of Laws
[HN3] Under the "center of gravity" or the "grouping of contacts" theory of the conflict of laws, instead of regarding as
conclusive the parties' intention or the place of making or performance, emphasis is upon the law of the place that has
the most significant contacts with the matter in dispute.
HEADNOTES
Conflict of laws - husband and wife - repudiation of separation agreement - (1) wife and husband entered into separation
agreement in New York providing that husband pay stated amount monthly for support of wife and children, that
neither should sue in any action relating to separation, and that wife should not sue in any jurisdiction by reason of prior
Mexican divorce; thereafter wife sued for separation in England; action herein by wife to recover arrears due her under
agreement; husband's motion for summary judgment based on defense that wife's separation action in England operated
as repudiation of agreement, [***2] denied; law of England applicable and thereunder issue exists as to effect of
commencement of separation action on separation agreement - (2) under "grouping of contacts" theory of conflict of
laws, English law would be applied - (3) parties could not have expected that law other than English law would be
applied - (4) moreover, under rule that matters of performance and breach are governed by law of place of performance,
English law would control - (5) husband's contention that wife's commencement of English action amounted to breach
of her covenant not to sue also governed by English law.
1. Defendant husband, who had procured a Mexican divorce, and plaintiff wife entered into a separation agreement in
1933 in New York providing that the husband pay a stated amount monthly to a New York trustee for the account of his
wife, for the support of herself and their children; that neither should sue "in any action relating to their separation", and
that the wife should not "cause any complaint to be lodged against * * * [the husband], in any jurisdiction, by reason of
the said alleged divorce". Immediately after the signing of the agreement, the wife returned to England, where she
[***3] has since lived with the children. In 1934, the wife filed a petition for separation in an English court, but the
action never proceeded to trial. In 1947, the wife brought the present action to recover arrears allegedly due her under
the agreement. Since the law of England must be applied, and since, at the least, an issue exists whether the courts of
that country treat the commencement of a separation action as a repudiation of an earlier-made separation agreement,
the husband's motion for summary judgment, based on his defense of an alleged repudiation by the wife of the
separation agreement, should not have been granted.
2. The "center of gravity" or "grouping of contacts" theory of the conflict of laws emphasizes the law of the place
which has the most significant contacts with the matter in dispute. Examination of the respective contacts with New
York and England indicates that the English law should be applied to determine the effect to be given the wife's
institution of the separation suit in England. The parties were married in England, had children there and lived there as
a family for fourteen years. The husband allegedly had willfully deserted and abandoned the [***4] wife and children

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308 N.Y. 155, *; 124 N.E.2d 99, **;
1954 N.Y. LEXIS 930, ***4; 50 A.L.R.2d 246
in England, and was in this country on a temporary visa when the agreement was signed. The sole purpose of the wife's
trip to New York was to arrange for defendant to agree to support his family, and she returned to England immediately
after the agreement was executed. The agreement, effecting a separation between British subjects, was drawn with an
understanding that the wife and children would live in England. The only relation of this state with the matter is that it
is the place where the agreement was made and where the trustee had his office.
3. The parties could not have expected or believed that any law other than that of England would govern the effect of
the wife's institution of a separation action.
4. If the rule that matters of performance and breach are governed by the law of the place of performance should be
applied, the law of England would still control.
5. The husband's contention that plaintiff's commencement of the English action amounted to a material breach of his
wife's covenant not to sue, barring recovery on the agreement, is also governed by English law.
COUNSEL: Michael Alexander, Bernard B. Smith and Leonard H. Steibel [***5] for appellant. I. The effect of the
English separation action upon the separation agreement must be determined in accordance with the rule of law applied
by the English courts. ( Rennie v. Rennie, 287 N.Y. 86; Lynde v. Lynde, 41 App. Div. 280, 162 N.Y. 405, 181 U.S. 183;
Swift & Co. v. Bankers Trust Co., 280 N.Y. 135; Myles v. Cuba R.R. Co., 182 Misc. 169; Lann v. United States Steel
Works Corp., 166 Misc. 465; Matter of Palmer, 192 Misc. 385, 275 App. Div. 792; Graham v. First Nat. Bank of
Norfolk, 84 N.Y. 393; Hutchinson v. Ross, 262 N.Y. 381.) II. Even assuming, arguendo, that the effect of the English
separation action upon the separation agreement must be determined in accordance with the rule of law applied by the
courts of New York, the judgment of the Appellate Division affirming Special Term cannot be sustained. ( Woods v.
Bard, 285 N.Y. 11; Krell v. Krell, 192 Misc. 1; Clark v. Kirby, 243 N.Y. 295; Dimick v. Dimick, 230 App. Div. 99; Van
Horn v. Van Horn, 196 App. Div. 472; Chamberlain v. Cuming, 37 Misc. 815; Estin v. Estin, 296 N.Y. 308, 334 U.S.
541; [***6] Gifford v. Corrigan, 117 N.Y. 257; Rosmarin v. Rosmarin, 238 App. Div. 798; De Brauwere v. De
Brauwere, 203 N.Y. 460; Patino v. Patino, 195 Misc. 887, 278 App. Div. 756, 278 App. Div. 921.)
Saul Hammer for respondent. I. The separation agreement sued upon is governed by the law of the State of New York.
( Bitterman v. Schulman, 265 App. Div. 486; Stumpf v. Hallahan, 101 App. Div. 383, 185 N.Y. 550; Vander Horst v.
Kittredge, 229 App. Div. 126; Aronson v. Carobine, 129 Misc. 800; Rennie v. Rennie, 287 N.Y. 86.) II. The law of the
contract also governs the interpretation and legal effect of any acts urged as a defense or discharge of the agreement. (
Benton v. Safe Deposit Bank, 255 N.Y. 260; Pritchard v. Norton, 106 U.S. 124.) III. The law of domicile does not
govern. ( Vander Horst v. Kittredge, 229 App. Div. 126; Graham v. First Nat. Bank of Norfolk, 84 N.Y. 393;
Hutchinson v. Ross, 262 N.Y. 381.) IV. Appellant repudiated the agreement sued upon by instituting suit against
respondent for judicial separation. ( O'Brien v. O'Brien, 252 App. Div. 427; [***7] Hettich v. Hettich, 278 App. Div.
518; Woods v. Bard, 285 N.Y. 11; Krell v. Krell, 192 Misc. 1; Schmelzel v. Schmelzel, 287 N.Y. 21; Dimick v. Dimick,
230 App. Div. 99; Van Horn v. Van Horn, 196 App. Div. 472.) V. In any event, appellant's breach of the covenants of
the agreement barred any subsequent recovery thereunder. ( Duryea v. Bliven, 122 N.Y. 567; Haskell v. Haskell, 207
App. Div. 723; Muth v. Wuest, 76 App. Div. 332; Matter of Noel, 173 Misc. 844; Cole v. Addison, 153 Ore. 688;
Harwood v. Harwood, 182 Misc. 130; Roth v. Roth, 77 Misc. 673; Schmidt v. Schmidt, 74 Misc. 423.) VI. No rights
survive to appellant after her repudiation of the separation agreement.
OPINION BY: FULD
OPINION
[*158] [**100] FULD, J. In this action to recover installments allegedly due for support and maintenance under a
separation agreement executed in this state in 1933, the wife's complaint has been dismissed, on motion for summary
judgment, upon the ground that her institution of an action for separation in England constituted a repudiation and a
rescission of the agreement under New [***8] York law. Determination of the appeal, involving as it does a question

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308 N.Y. 155, *158; 124 N.E.2d 99, **100;
1954 N.Y. LEXIS 930, ***8; 50 A.L.R.2d 246
of conflict of laws, requires examination of the facts disclosed by the papers before us.
Married in England in 1917, Mr. and Mrs. Auten continued to live there with their two children until 1931. In that year,
according to plaintiff, defendant deserted her, came to this country and, in the following year, obtained a Mexican
divorce and proceeded to "marry" another woman. Unable to come to terms with the ocean between them, plaintiff
made a trip to New York City to see and talk to defendant about adjustment of their differences. The outcome was the
separation agreement of June, 1933, upon which the present action is predicated. It obligated the husband to pay to a
trustee, for the "account of" the wife, who was to return to England, the sum of 50 a month for the support of herself and
the children. In addition, the agreement provided that the parties were to continue to live separate and apart, that neither
should sue "in any action relating to their separation" and that the wife should not "cause any complaint to be lodged
against * * * [the husband], in any jurisdiction, by reason of the said alleged [***9] divorce or remarriage".
Immediately after the agreement was signed, plaintiff returned to England, where she has since lived with her children,
and it is alleged by her - but disputed by defendant - that the latter is also domiciled in that country. Be that as it may,
defendant failed to live up to his agreement, making but a few payments under it, with the result that plaintiff was left
more or less destitute in England with the children. About a year after the agreement had been executed, in August of
1934, plaintiff filed a petition for separation in an English court, charging defendant with adultery. Defendant was
served in New York with process in that suit on December 4, 1936, and, in July, 1938, an order was entered requiring
defendant to pay alimony pendente lite. This English action - which, we are told [*159] never proceeded to trial - was
instituted upon advice of English counsel that it "was the only method" by which she "could collect money" from
defendant; it was done, plaintiff expressly declares, to "enable" her "to enforce" the separation agreement, and not with
any thought or intention of repudiating it.
The years passed, and in 1947, having realized [***10] nothing as a result of the English action and little by reason of
the New York separation agreement, plaintiff brought the present suit to recover the sum of $26,564, which represents
the amount allegedly due her, under the agreement, from January 1, 1935 to September 1, 1947.
[**101] In his answer, defendant admitted making the agreement, but, by way of a separate defense - one of several claimed that plaintiff's institution of the separation suit in England operated as a repudiation of the agreement and
effected a forfeiture of her right to any payments under it. Following a motion by the wife for summary judgment and a
cross motion by the husband for like relief, the court at Special Term granted the husband's cross motion and dismissed
the complaint. The Appellate Division affirmed, with leave to the wife, however, to serve an amended complaint,
asserting any cause of action which accrued prior to the date of the commencement of the English suit. The ensuing
judgment, dismissing all of the wife's claims which accrued subsequent to that date, is a final judgment of modification,
and the wife's appeal therefrom is properly before us as of right. (306 N.Y. 752; see, also, [***11] Cohen and Karger,
Powers of the New York Court of Appeals, pp. 88-91, 222-223.)
Both of the courts below, concluding that New York law was to be applied, held that under such law plaintiff's
commencement of the English action and the award of temporary alimony constituted a rescission and repudiation of
the separation agreement, requiring dismissal of the complaint. Whether that is the law of this state, or whether
something more must be shown to effect a repudiation of the agreement (cf. Hettich v. Hettich, 304 N.Y. 8, 13-14;
Woods v. Bard, 285 N.Y. 11; Butler v. Butler, 206 App. Div. 214), need not detain us, since in our view it is the law of
England, not that of New York, which is here controlling.
Choosing the law to be applied to a contractual transaction with elements in different jurisdictions is a matter not free
from [*160] difficulty. The New York decisions evidence a number of different approaches to the question. (See, e.g.,
Jones v. Metropolitan Life Ins. Co., 158 Misc. 466.)
Most of the cases rely upon the generally accepted rules that [HN1] "All matters bearing upon the execution, the
interpretation and the validity of contracts [***12] * * * are determined by the law of the place where the contract is
made", while "All matters connected with its performance * * * are regulated by the law of the place where the contract,

Page 5
308 N.Y. 155, *160; 124 N.E.2d 99, **101;
1954 N.Y. LEXIS 930, ***12; 50 A.L.R.2d 246
by its terms, is to be performed." ( Swift & Co. v. Bankers Trust Co., 280 N.Y. 135, 141; Union Nat. Bank v. Chapman,
169 N.Y. 538, 543; see, also, Zwirn v. Galento, 288 N.Y. 428; United States Mtge. & Trust Co. v. Ruggles, 258 N.Y.
32, 38; Restatement, Conflict of Laws, 332, 358; Goodrich on Conflict of Laws [2d ed., 1938], p. 293.) [HN2] What
constitutes a breach of the contract and what circumstances excuse a breach are considered matters of performance,
governable, within this rule, by the law of the place of performance. (See Richard v. American Union Bank, 241 N.Y.
163, 166-167; Restatement, Conflict of Laws, 370; Goodrich, op. cit., p. 293.)
Many cases appear to treat these rules as conclusive. Others consider controlling the intention of the parties and treat the
general rules merely as presumptions or guideposts, to be considered along with all the other circumstances. (See
Wilson v. Lewiston Mill Co., 150 N.Y. 314, 322-323; Stumpf [***13] v. Hallahan, 101 App. Div. 383, 386, affd. 185
N.Y. 550; Grand v. Livingston, 4 App. Div. 589, affd. 158 N.Y. 688.) And still other decisions, including the most
recent one in this court, have resorted to a method - first employed to rationalize the results achieved by the courts in
decided cases (see Barber Co. v. Hughes, 223 Ind. 570, 586) - which has come to be called [HN3] the "center of
gravity" or the "grouping of contacts" theory of the conflict of laws. Under this theory, the courts, instead of regarding
as conclusive [**102] the parties' intention or the place of making or performance, lay emphasis rather upon the law of
the place "which has the most significant contacts with the matter in dispute". ( Rubin v. Irving Trust Co., 305 N.Y.
288, 305; see, also, Jones v. Metropolitan Life Ins. Co., supra, 158 Misc. 466, 469-470; Jansson v. Swedish American
Line, 185 F. 2d 212; [*161] Barber Co. v. Hughes, supra, 223 Ind. 570; Boissevain v. Weil, [1949] 1 K.B. 482,
490-492; Cook, "Contracts" and the Conflict of Laws: "Intention" of the Parties, 32 Ill. L. Rev. 899, 918-919; Harper,
Policy Bases of the Conflict of [***14] Laws: Reflections on Rereading Professor Lorenzen's Essays, 56 Yale L.J.
1155, 1163-1168; Note, Choice of Law Problems in Direct Actions Against Indemnification Insurers, 3 Utah L. Rev.
490, 498-499.)
Although this "grouping of contacts" theory may, perhaps, afford less certainty and predictability than the rigid general
rules (see Note, op. cit., 3 Utah L. Rev. 490, 498), the merit of its approach is that it gives to the place "having the most
interest in the problem" paramount control over the legal issues arising out of a particular factual context, thus allowing
the forum to apply the policy of the jurisdiction "most intimately concerned with the outcome of [the] particular
litigation" (3 Utah L. Rev., pp. 498-499). Moreover, by stressing the significant contacts, it enables the court, not only
to reflect the relative interests of the several jurisdictions involved (see Vanston Committee v. Green, 329 U.S. 156,
161-162), but also to give effect to the probable intention of the parties and consideration to "whether one rule or the
other produces the best practical result". ( Swift & Co. v. Bankers Trust Co., supra, 280 N.Y. 135, 141; see Vanston
Committee [***15] v. Green, supra, 329 U.S. 156, 161-162.)
Turning to the case before us, examination of the respective contacts with New York and England compels the
conclusion that it is English law which must be applied to determine the impact and effect to be given the wife's
institution of the separation suit 1. It hardly needs stating that it is England which has all the truly significant contacts,
while this state's sole nexus with the matter in dispute - entirely fortuitous, at that - is that it is the place where the
agreement was made and where the trustee, to whom the moneys were in the first [*162] instance to be paid, had his
office. The agreement effected a separation between British subjects, who had been married in England, had children
there and lived there as a family for fourteen years. It involved a husband who, according to the papers before us, had
willfully deserted and abandoned his wife and children in England and was in the United States, when the agreement
was signed, merely on a temporary visa. And it concerned an English wife who came to this country at that time
because it was the only way she could see her husband to discuss their differences. The sole [***16] purpose of her
trip to New York was to get defendant to agree to the support of his family, and she returned to England immediately
after the agreement was executed. While the moneys were to be paid through the medium of a New York trustee, such
payments were "for account of" the wife and children, who, it was thoroughly understood, were to live in England. The
agreement is instinct with that understanding; not only does it speak in terms of English currency in providing for
payments to the wife, not only does it recite that the first payment be made to her "immediately before sailing for
England", but it specifies that the husband may visit the children "if he should go to England".

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308 N.Y. 155, *162; 124 N.E.2d 99, **102;
1954 N.Y. LEXIS 930, ***16; 50 A.L.R.2d 246

1. Our decision in Rennie v. Rennie (287 N.Y. 86) casts no light on the problem. The court did not there consider whether it is the law of
the place where the separation agreement was made or of the jurisdiction where the separation suit or other judicial proceeding was brought
which determines the effect that such action may have upon the agreement.

[**103] In short, then, the agreement determined and fixed the marital responsibilities of an English husband and
father and provided [***17] for the support and maintenance of the allegedly abandoned wife and children who were to
remain in England. It merely substituted the arrangements arrived at by voluntary agreement of the parties for the
duties and responsibilities of support that would otherwise attach by English law. There is no question that England has
the greatest concern in prescribing and governing those obligations, and in securing to the wife and children essential
support and maintenance. And the paramount interest of that country is not affected by the fact that the parties separate
and provide for such support by a voluntary agreement. It is still England, as the jurisdiction of marital domicile and the
place where the wife and children were to be, that has the greatest concern in defining and regulating the rights and
duties existing under that agreement, and, specifically, in determining the circumstances that effect a termination or
repudiation of the agreement.
[*163] Nor could the parties have expected or believed that any law other than England's would govern the effect of
the wife's institution of a separation action. It is most unlikely that the wife could have intended to subject her [***18]
rights under English law to the law of a jurisdiction several thousand miles distant, with which she had not the slightest
familiarity. On the contrary, since it was known that she was returning to England to live, both parties necessarily
realized that any action which she took, whether in accordance with the agreement or in violation of it, would have to
occur in England. If any thought was given to the matter at all, it was that the law of the place where she and the
children would be should determine the effect of acts performed by her.
It is, perhaps, not inappropriate to note that, even if we were not to place our emphasis on the law of the place with the
most significant contacts, but were instead simply to apply the rule that matters of performance and breach are governed
by the law of the place of performance, the same result would follow. Whether or not there was a repudiation,
essentially a form of breach (see Restatement, Contracts, 318; 4 Corbin on Contracts [1951], 954, pp. 829-834), is
also to be determined by the law of the place of performance (cf. Wester v. Casein Co. of America, 206 N.Y. 506;
Restatement, Conflict of Laws, 370, Caveat [***19] ), and that place, so far as the wife's performance is concerned,
is England. Whatever she had to do under the agreement - "live separate and apart from" her husband, "maintain,
educate and support" the children and refrain from bringing "any action relating to [the] separation" - was to be done in
England. True, the husband's payments were to be made to a New York trustee for forwarding to plaintiff in England,
but that is of no consequence in this case. It might be, if the question before us involved the manner or effect of
payment to the trustee, but that is not the problem; we are here concerned only with the effect of the wife's performance.
(Cf. Zwirn v. Galento, supra, 288 N.Y. 428, 433.)
Since, then, the law of England must be applied, and since, at the very least, an issue exists as to whether the courts of
that country treat the commencement of a separation action as a [*164] repudiation of an earlier-made separation
agreement, summary judgment should not have been granted 2.

2. In point of fact, the English lawyers, whose affidavits have been submitted by plaintiff, unequivocally opine that the institution of a
separation suit and the award of alimony pendente lite did not, under the law of England, constitute a repudiation of the separation agreement
or bar the present action to recover amounts due under it.

[***20] As to defendant's further contention that, in any event, plaintiff's commencement of the English action
amounted to a [**104] material breach of her covenant not to sue, barring recovery upon the agreement, we need but

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308 N.Y. 155, *164; 124 N.E.2d 99, **104;
1954 N.Y. LEXIS 930, ***20; 50 A.L.R.2d 246
say that this question, too, must be governed by English law, and for the same reasons already set forth.
The judgment of the Appellate Division and that of Special Term insofar as they dismiss the complaint should be
reversed, with costs in all courts, and the matter remitted for further proceedings in accordance with this opinion.