Also known as:real conflict · false conflict · choice of law
Written by attorneys · grounded in primary & secondary sources — see below
A multistate dispute in which the policies of two or more states genuinely conflict so that each state has a legitimate interest in having its own law applied to resolve the issue.
Sources & Authorities
How it applies
Common Examples
6
Diversity Suit Over Contract Performance
Raymond Ramos, a resident of State X, sued Redline Automotive in federal court in State Y for breach of a supply contract performed partly in both states. State X law protected buyers with a broad warranty while State Y law limited remedies to repair costs. The federal court applied State Y choice of law rules to decide which substantive law governed the warranty claim.
Property Interest in Coastal Land
Rebecca Ross purchased waterfront property in State B from Riverfront Developments under an agreement formed in State A. A neighbor asserted a prescriptive easement based on long use entirely within State B. The court weighed the most significant relationship factors to determine whether State A or State B law governed the easement claim.
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Cases
Uniform Acts
Model Codes
Restatements
Casebooks
Will Execution Across Borders
Roger Ramirez executed a will before a Swiss notary while maintaining an apartment lease in Basel. He later moved to State B where stricter attestation rules applied. The probate court considered whether Swiss law or State B law at death validated the instrument under the available choice of law options.
Equity Suit Involving Multiple States
Rajesh Rao sued in federal court sitting in State A to enforce an equitable claim arising from events in State B and State C. Each state maintained different rules on the availability of the remedy. The court followed the choice of law rules of its forum state to select the governing substantive law.
Guaranty Trust Co. v. York[326 U.S.] at 110
Insurance Dispute With Foreign Contacts
Ricardo Rojas, insured by a company based in State A, sought coverage for losses occurring in State B. State A law favored broad coverage while State B law imposed strict notice requirements. The court evaluated whether the policies of each state created a genuine conflict requiring selection of one rule.
Hartford Fire Insurance Co. v. California509 U.S. 764, 817, 113 S.Ct. 2891, 125 L.Ed.2d 612 (1998)
Maritime Claim Choice of Law
Roland Rhodes, a seaman injured aboard a vessel, brought claims in federal court. The vessel flew a foreign flag and the injury occurred in a U.S. port. The court assessed whether U.S. maritime law or foreign law applied by examining the contacts and policies of the interested jurisdictions.
American Dredging Co. v. Miller510 U.S. 443, 446 (1994)
Common questions
Frequently Asked
3
How does a court distinguish a real conflict from a false conflict?+
A real conflict exists when two or more states each have a legitimate interest in applying their own law because the policies underlying those laws would be advanced by application to the facts. A false conflict arises when only one state has such an interest or when the laws do not actually differ in outcome. The distinction guides whether further choice of law analysis is needed.
Supporting sources
What role do the most significant relationship factors play in resolving real conflicts involving property?+
In real conflicts over interests in things, courts evaluate the relationship of each state to the thing and the parties under the principles of section 6. Protection of justified expectations receives special weight in property transactions. The situs state often has the strongest interest when the dispute concerns physical use or servitudes.
Does the Klaxon rule affect how federal courts handle real conflicts?+
Yes. A federal court sitting in diversity must apply the choice of law rules of the state in which it sits when a real conflict requires selection among competing state laws. Those state choice of law rules are treated as substantive under Erie.
433 U.S. 186 (1977)Conflict of Laws
…center of gravity' of the controversy, or the most convenient location for litigation. The issue is personal jurisdiction, not choice of law. It is resolved in this case by considering the acts of the [appellants]." Hanson v. Denckla , 357 U. S. 235, 254 (1958). Appellee suggests that by accepting positions as officers or…