Conflict Of Laws

Front 1

Conflict of Laws Rules in Torts Cases

Back 1

NY applies Governmental interest approach to choice of law qs. BABCOCK - court examines connections each state has to parties and events of litigation, analyzes the differences, pinpoints polcies and then applies the facts to the law to determine which state has a greater interest. NY court of Appeals refined it in NEUMERIER. 3 Principles applied.

1. Both parties domiciled in that state - it applies

2. P and D different states - situs of injury as long as that law will protect own domiciallry

3. if none apply , law of state where injury occurred absent some strong govt. interest to contrary.

Front 2

Conflict of Laws Rules in Auto Insurance Policies

Back 2

When Claim concerns an INSURANCE POLICY , NY courts will apply centre of gravity test and they consider ;

1. Where policy purchased

2. Where negotiated

3. state of insurer

4. Domicile of insured

5. choice of law in contract

6. state incident occurred

Most significant relationship to the parties will generally be the state which the parties understood was to be the principal location of the insured risk.

Front 3

Choice of law In Contracts

Back 3

matters of construction - free to choose state

Matters of validity - parties can only choose which state law applies IF;

1. state has connection with contract

2. contract not entered under Duress

3. COL is not contrary to a substantial policy interest of another state that has more interest.

** Statutory exception - >250,00 can choose NY law be applies regardless of connection.

Front 4

Erie Doctrine

Back 4

Erie applies when fed court is sitting in diversity. Will apply its OWN federal procedural laws but the state substantive law of the forum in which it sits. Choice of laws considered SUBSTANTIVE so federal court in diversity applies forum states COL rules.