Senate Bill 2488, also known as the "Tennessee Foreign Law Non-Recognition Act," amends Tennessee law to prohibit the application of foreign law in legal proceedings if such application would violate rights guaranteed by the U.S. Constitution or the Tennessee Constitution. Specifically, it establishes that courts, arbitration panels, and other tribunals in Tennessee cannot enforce or base decisions on foreign laws that contravene constitutional rights. However, the bill clarifies that it does not prevent the recognition of foreign judgments or contracts that comply with constitutional protections, nor does it interfere with the application of tribal law, federal law, or the uniform commercial code.
Additionally, the bill introduces a limitation on arbitration awards, stating that such awards cannot be confirmed or enforced if they are based on foreign law that would violate constitutional rights if applied in Tennessee. It also declares any provision in an arbitration agreement that mandates the application of foreign law in a way that contradicts constitutional protections to be void and unenforceable. This legislation aims to ensure that Tennessee's legal framework remains aligned with constitutional rights while addressing the influence of foreign legal systems.