2. Choice of Law

Question 1

A choice of law question may arise when two conditions are satisfied:

Answer 1

1. The lawsuit involves factual connections with multiple states.
2. The multiple states will have different laws leading to different results.

Question 2

What law applies in diversity cases in federal court?

Answer 2

A federal court sitting in diversity applies the choice of law approach of the state in which it sits.

Question 3

What law is applied in transferred diversity cases?

Answer 3

When a diversity case is transferred within the federal system, the federal court applies the choice of law approach of the transferor court.

Question 4

Stock first paragraph for a NY choice of law question:

Answer 4

“The issue presented is which state’s law will govern the outcome of this litigation. The governing law will be selected by the forum court using New York’s interest analysis approach to choice of law.”

Question 5

Stock second paragraph for a NY choice of law question:

Answer 5

“Under New York’s approach, the court will consider which states have a legitimate interest in the outcome of the litigation. The court will apply New York law as long as it has a legitimate interest. If New York has no legitimate interest, the court will apply the law of another interested state.”