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 Kentucky, 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. When a case involves parties or elements from different states or jurisdictions, Kentucky courts will analyze various factors to determine which state's laws should apply. These factors can include the location where a contract was signed or where a tort occurred, the residency or place of business of the parties involved, and the jurisdiction with the most significant relationship to the dispute. Kentucky courts may also consider the Restatement (Second) of Conflict of Laws, which is a legal treatise that provides guidance on choice of law issues. If the parties have a valid choice of law clause in their contract, Kentucky courts will generally honor that agreement, unless it contradicts a fundamental policy of the state. However, in the absence of such an agreement, Kentucky courts will apply conflict of laws principles to determine the applicable law for resolving the dispute.