Also known as:governing laws · choice of law · applicable law
Written by attorneys · grounded in primary & secondary sources — see below
The body of legal rules that a court or other decision maker must apply to resolve a dispute or interpret an instrument. The governing law may be selected by the parties in a contract or will or determined by statutory or common law choice of law rules when the parties have not made an effective selection.
Sources & Authorities· 26 primary sources
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Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Common Law
Restatements
Casebooks
How it applies
Common Examples
6
Work Product Protection Claim
Grace Gupta sues her former employer after discovering internal memos prepared by in-house counsel. The employer withholds the memos claiming work-product protection. The court applies the governing law to determine whether the memos qualify for protection because they were prepared in anticipation of litigation.
Will Revocation Dispute
Glenn Gross executes a will leaving his estate to his niece. After his niece moves away he executes a revocation believing she no longer needs the inheritance. The niece later returns and the court applies the governing law to decide whether the revocation is ineffective because it rested on a false assumption about an objective fact.
Diversity Choice of Law
Gina Griffin, a New York resident, sues a Pennsylvania driver in federal court in New York for injuries sustained in a Pennsylvania accident. The federal court applies the governing law by following New York choice of law rules to decide which state's substantive tort rules control the case.
Corporate Venue Determination
Genesis Pharmaceuticals, incorporated in Delaware with its principal place of business in New Jersey, is sued in the District of New Jersey. The court applies the governing law to deem the company a resident of that district because it is subject to personal jurisdiction there for the action.
Class Gift Distribution
George Garcia's will creates a class gift to his descendants without specifying shares. When the gift takes effect the court applies the governing law of intestate succession to distribute the property among living class members in the shares they would have received if George had died intestate owning the property.
Foreclosure Sale Challenge
Great Lakes Steel defaults on a mortgage. The lender conducts a regularly held foreclosure sale that yields a low price. The borrower challenges the sale. The court applies the governing law and upholds the sale because the price is not grossly inadequate.
Common questions
Frequently Asked
5
How does a federal court determine which state's law applies in a diversity case?+
A federal court sitting in diversity applies the choice of law rules of the state in which it sits. Those state rules are treated as substantive under Erie and therefore control the selection of governing law for the underlying claims.
Supporting sources
When is a revocation of a will ineffective under dependent relative revocation?+
A revocation is presumptively ineffective if the testator made it in an unsuccessful attempt to achieve a different disposition or because of a false assumption of law or fact that is recited in the revoking instrument or proved by clear and convincing evidence. The presumption is rebutted only if keeping the revocation in effect better matches the testator's probable intent.
What law determines an entity's residence for venue purposes?+
Under 28 U.S.C. § 1391(c)(2) an entity resides, for venue purposes, in any district where it is subject to personal jurisdiction with respect to the action if it is a defendant, or in the district of its principal place of business if it is a plaintiff. The statute supplies the governing law for this determination.
Supporting sources
How are shares distributed in a class gift to descendants when the will is silent?+
The property is distributed among living class members in the shares they would receive under the applicable law of intestate succession if the designated ancestor had died intestate owning the property at the time the interest takes effect in possession.
Supporting sources
When does a low foreclosure sale price render the foreclosure defective?+
A foreclosure sale price obtained in a regularly conducted proceeding does not render the foreclosure defective unless the price is grossly inadequate. The governing law therefore protects the sale from challenge on price alone absent that extreme showing.
Supporting sources
and allowed federal courts sitting in diversity cases to disregard state decisional law, it was never thought that state statutes or constitutions were similarly to be disregarded. Green…
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