Determining Which State’s Law Applies

In general, the law of only one state will apply to a dispute between parties to a lawsuit.  Usually, the law that applies to a matter is the law of the state in which the lawsuit is venued.  However, determining which state’s law applies can be more difficult in certain circumstances, and this determination is important when evaluating the merits of a case.

One State is Involved in the Dispute

In certain circumstances, determining which state’s law applies is an easy process.  Some lawsuits involve parties who all reside within one state.  In addition, the incident involved in the case occurred in the same state in which the parties reside.  In such instances, the law of the state where the parties reside and where the incident occurred will govern a dispute.  No other state has an interest in the case, and so there is no need to perform an advanced analysis to determine which state’s law applies to the lawsuit.  It should be noted that some lawsuits see uncomplicated when they actually might involve different states.  For instance, breach of contract lawsuits could involve different states depending on where parties were when they negotiated the contract and other factors.  As a result, if there are complex facts surrounding your claim, you should speak with an experienced attorney to discuss the law that may apply to your case.

Contract Clauses

Another situation in which determining which state’s law applies is when contractual provisions specify that one state’s law shall apply to said contracts and disputes that arise under such contracts.  Parties are generally free to designate that one state’s law shall apply to a contract of disagreements arising under a contract.  Sometimes, parties need to show that the state selected had some connection to the dispute involved in a lawsuit.  It often makes sense to designate a state’s law to govern a dispute in a contract.  This minimizes expenses associated with litigation because parties need to spend less time litigating which state’s law applies to a dispute.  Moreover, sometimes the law of one state may be more favorable to one party over the other, and parties can secure an advantage by selecting a state’s law in a contractual provision.  As a result, people should speak with counsel before designating a state’s law to govern a contract to make sure that they preserve every advantage that they may have if a dispute arises between the parties.

Interests Analysis

In certain types of cases, determining which state’s law applies involves the interests analysis.  This test considers which forum has the most interest in the dispute that is involved in litigation.  Jurisdictions tend to look at a variety of factors when evaluating which forum has the greatest interest in a lawsuit.  This includes the state citizenship of the parties, since states have an interest in the affairs of residents of those states.  The state in which the transactions and occurrences involved in a lawsuit also has an interest in the dispute to be litigated.  Moreover, the state in which the acts and omissions that gave rise to a lawsuit will also have an interest in resolving a lawsuit.  The interests analysis is also very fact intensive, and may require careful consideration in order to determine the state law that applies to a given dispute.  As a result, it is important to speak with counsel in order to evaluate which state’s law applies if the simpler categories of matters above are not implicated.

Federal Courts

Determining which state’s law applies is a little simpler with federal courts.  Some federal cases just involve the interpretation of federal law.  In such instances, the federal laws themselves and the cases teasing out such laws will apply to a given lawsuit.

In certain federal cases, the court will oversee state law causes of action.  This occurs when federal courts oversee disputes involving citizens of different states if the amount in controversy is large enough and if a federal case involves associated state law claims that should properly be adjudicated along with the federal claims.  In such instances, the federal court will apply the substantive law of the state in which the federal court sits unless there are conflicts of law principles at play as described above.

Procedural versus Substantive Law

Another important thing to keep in mind when determining which state’s law applies is that procedural and substantive laws of a state may be considered differently.  Procedural law is the law that applies to the process through which parties litigate claims in court. Substantive law is the law that governs the substance of the causes of action and defenses asserted by the parties to a case.  In general, the procedural law will be governed by the law of the state in which the forum overseeing the dispute is located.  Substantive law will be governed by the conflicts of law principles noted above.  It can sometimes be difficult to tell if an issue is substantive or procedural in nature and an experienced lawyer should know the difference.

The Rothman Law Firm has experience with determining which state’s law applies to a variety of disputes.  If you are looking for an experienced New York and New Jersey lawyer to handle a matter involving conflicts of law or other legal issues, please feel free to contact The Rothman Law Firm to request a free consultation.