  We develop a two-orbital Hubbard model of electron correlations in ultrathin
(111)-oriented fcc films of late transition metals such as Co and Ni. Our model
indicates that the Mott-Hund's interaction results in ferromagnetic
nearest-neighbor orbital correlations. Frustration associated with the mismatch
between orbital and crystal symmetries prevents orbital ordering, resulting in
the orbital liquid state. This state can be manifested in phenomena involving
spin-orbit coupling, such as magnetic anisotropy.
