Also known as: locations of the subject matter · situs
Written by attorneys · grounded in primary & secondary sources — see below
An evaluative contact in multistate disputes that identifies the physical situs of the thing whose interests are in question. Courts weigh this contact with other section 6 factors to determine the state with the most significant relationship to the thing and the parties when selecting the law that governs interests in that thing.
Levi Lowe granted a mortgage on commercial property located in State Y to secure a loan from Lumen Capital. When the lender sought foreclosure, the court had to decide whether the mortgage created an interest in land. The location of the subject matter in State Y led the court to apply the law that State Y courts would use to characterize the mortgage interest.
Lexicon Media stored valuable film equipment in a warehouse in State Z after purchasing it under contracts negotiated in State X. Local creditors in State Z challenged the buyer's security interest. The location of the subject matter in State Z prompted the court to weigh that contact heavily when identifying the state with the most significant relationship to the equipment and the parties.
Select any source to read its text and confirm it supports the definition.
Lena Lawson suffered injury when equipment manufactured in State A malfunctioned at a construction site in State B. She sued the manufacturer in federal court. The location of the subject matter in State B directed the court to treat that situs as a key contact when deciding which state's substantive law governed the claim.
Lamar Lewis operated a franchise in State Y that was destroyed by a competitor's actions originating in State X. He sued for interference with prospective advantage. The location of the subject matter in State Y caused the court to emphasize that contact when evaluating which state had the most significant relationship to the economic interest at stake.
Lotus Pharmaceuticals held funds traceable to accounts located in State Y. Two states asserted custody rights. The location of the subject matter in State Y led the court to treat that situs as the dominant contact when allocating the property between the competing sovereigns.
Luis Lopez, a resident of State X, was injured while driving a vehicle garaged in State Y. His insurer, Legacy Motors, disputed coverage. The location of the subject matter in State Y prompted the court to give substantial weight to that contact when determining which state's law governed the policy's application.
The location of the subject matter is a primary contact that usually points to the law of the situs for determining whether a mortgage or other transfer creates an interest in land. Courts apply the law that the situs courts would use, promoting predictability in property transactions.
Supporting sources
No. For movables the location is one contact among several that courts weigh under section 6 principles to find the state with the most significant relationship. The analysis remains issue-specific and does not automatically follow the physical situs.
Supporting sources
Parties to property transactions typically consult counsel and form expectations based on the law of the place where the thing is situated. Giving weight to the location of the subject matter therefore protects those expectations and promotes certainty in multistate deals.
Supporting sources
…which was incorporated in Delaware. The stock certificates were not physically present in Delaware, but under Delaware law, the situs of the stock was deemed to be in Delaware. The individual defendants, whose primary residences and places of business were in Arizona, moved to quash service of process and to vacate the…