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 Montana, as in other states, when a lawsuit or dispute involves multiple states or jurisdictions, the determination of which state or jurisdiction's laws will apply is governed by the principles of 'conflict of laws.' Conflict of laws is a set of rules used by courts to evaluate which legal system and laws are most appropriate to resolve the specific issues in a case that has connections to more than one jurisdiction. These rules consider factors such as where the parties are located, where a contract was entered into or performed, and where a tort was committed. Montana courts will analyze the case using these principles to decide whether Montana law or the law of another jurisdiction should apply. If the parties have a valid contract that includes a choice of law provision, Montana courts will generally honor that agreement, unless it contradicts a fundamental policy of the state or is against public policy. In the absence of such an agreement, Montana courts will apply conflict of laws principles to ensure that the dispute is resolved under the appropriate legal framework.