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 Delaware, 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, also known as choice of law rules. These rules are designed to resolve questions of which state or jurisdiction's substantive law should be applied when there are competing interests. Delaware courts will consider various factors, such as the place where a contract was signed or where an injury occurred, the domicile or residence of the parties involved, and the location of the property or transaction in question. The courts aim to apply the law of the jurisdiction that has the most significant relationship to the dispute. However, if the parties have entered into a contract that includes a choice of law provision, Delaware courts will generally honor such agreements, assuming they are the result of fair dealing and do not violate public policy. In cases involving federal law, Delaware courts will apply federal law when required by the U.S. Constitution, federal statutes, or Supreme Court precedents. The interplay between state and federal law can be complex, and in some instances, federal law may preempt state law. An attorney can provide specific guidance on how conflict of laws principles may apply to a particular case in Delaware.