When there is more than one state, or more than one jurisdiction (state court, federal court) with a significant relationship to the parties and circumstances involved in a lawsuit or dispute, the question may arise as to which state or jurisdiction’s laws will govern the lawsuit or dispute. The body of law that determines what law governs a dispute is called conflict of laws and consists of legal principles courts use to determine which state or jurisdiction’s law applies—unless the parties to a dispute have agreed (usually in a contract) on what law will apply.

In Colorado, as in other states, the issue of which jurisdiction's laws apply to a lawsuit or dispute is governed by the principles of 'conflict of laws' or 'choice of law.' These principles are designed to resolve questions of which state or jurisdiction's substantive law should be applied in cases where the parties or the circumstances of the case have connections to more than one jurisdiction. Colorado courts will consider various factors, such as the domicile, residence, nationality, place of injury, place of transaction, and the location of the subject matter relevant to the case. Additionally, Colorado courts will look at the intent of the parties, which can be expressed through a choice of law clause in a contract. In the absence of such a clause, courts will apply conflict of laws principles to determine the most appropriate jurisdiction's laws to apply based on the connections and interests of the parties involved. When federal law is implicated, federal courts may apply a federal common law of conflicts or defer to the choice of law rules of the state in which they sit, unless a federal statute or interest dictates otherwise.