Also known as:choice-of-law · choice of laws · choice-of-law clause · choice of law clause
Written by attorneys · grounded in primary & secondary sources — see below
A set of rules used by a court to determine which jurisdiction's substantive law governs a dispute involving contacts with multiple jurisdictions. The rules evaluate the significance of each state's relationship to the parties, the occurrence, and the particular issue under principles that promote predictability, protection of justified expectations, and harmonious interstate relations.
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How it applies
Common Examples
6
Long-Term Franchise Contract Contacts
Olivia, an Oregon investor, entered a ten-year agreement with Alpine Stays, a Colorado corporation, to operate branded rentals. The contract required use of Colorado booking systems, ongoing payments to Colorado, and compliance with Colorado operational rules while selecting Colorado law. When Alpine sued for unpaid fees in Colorado, the court applied Colorado substantive law under the contract's choice-of-law provision given the parties' significant ongoing contacts with that state.
Property Interest Evaluation Factors
River Ocean purchased coastal land in State B from Josiah under a contract negotiated and signed in State A that designated State A law. After closing, a State B resident asserted a prescriptive easement based on decades of use. The court weighed the parties' expectations formed in State A against the strong situs interest of State B in regulating local servitudes and applied the most-significant-relationship analysis to the easement issue.
Will Execution Across Jurisdictions
A testator domiciled in State A executed a will while temporarily present in State B. The document complied with State B formalities but omitted one requirement of State A law. When the will was offered for probate in State A, the court upheld its validity because execution satisfied the law of the place where the testator was present at the time of signing.
Federal Diversity Choice Rules
A plaintiff sued a defendant in federal district court in State A on a state-law claim arising from events that occurred partly in State B. The federal judge applied State A's choice-of-law rules rather than federal common-law rules to decide whether State A or State B substantive law governed the claim.
Immovable Property Reference Rule
Parties domiciled in State A conveyed land located in State B under a contract that selected State A law. When a dispute arose over title, the forum court applied the totality of State B law, including State B's own choice-of-law rules, to reach the same result a State B court would have reached.
Post-Transfer Choice Rules
A plaintiff filed suit in federal court in State A. After the court granted the plaintiff's motion to transfer the case to State B for convenience, the transferee court applied State A's choice-of-law rules to determine which state's substantive law governed the claim rather than State B's rules.
Common questions
Frequently Asked
5
How does a court decide which state's law applies when multiple jurisdictions have contacts with a dispute?+
A court applies the choice-of-law rules of the forum to identify the jurisdiction with the most significant relationship to the parties and the issue. The analysis considers the needs of the interstate system, the policies of the interested states, the protection of justified expectations, and the basic policies underlying the field of law.
What rule must a federal court follow when determining which state's substantive law governs a diversity case?+
A federal court sitting in diversity must apply the choice-of-law rules of the state in which it sits. Those rules are treated as substantive under Erie, so the federal court follows the forum state's conflict rules rather than creating its own.
Does a § 1404(a) transfer change the choice-of-law rules that apply?+
No. When venue is proper in the transferor court, the transferee court must apply the same state law, including the same choice-of-law rules, that the transferor court would have applied.
How does a choice-of-law clause affect the governing-law determination?+
A clause selecting a particular state's law is ordinarily enforced when the chosen state bears a reasonable relationship to the parties or the transaction, allowing the court to apply that state's substantive rules to the dispute.
When is a will executed in one state valid under the law of another state?+
A written will is valid if its execution complies with the law of the place where it was executed or with the law of the place where the testator was domiciled, had a place of abode, or was a national at the time of execution or death.
designation does not require that all suits concerning this Agreement be filed in Florida." App. 72. See also n. 5, supra. The Court of Appeals reasoned that
choice-of-law
provisions are…
Turning to the merits, there is no contention by plaintiffs that FAL is outside the ambit of the attorney-client privilege because a corporation is not a client. Their argument is that the…
Civil ProcedureLaw applied by federal courts · Federal common lawUBEIntermediate