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 North Dakota, as in other states, the issue of which jurisdiction's laws apply to a legal 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, North Dakota courts will analyze various factors to determine which state's laws should govern the matter. These factors may include the location where a contract was signed or where an injury occurred, the residency or place of business of the parties involved, and the nature of the transaction or incident. Courts will also consider any choice of law provisions that the parties may have agreed upon in a contract. If such a provision exists and is valid, it will typically be honored, unless it contravenes a fundamental policy of the state with a more significant relationship to the dispute. In the absence of an agreement, North Dakota courts will apply conflict of laws rules, which may involve the 'most significant relationship' test among other doctrines, to determine the applicable law. These rules are complex and can vary depending on the specific legal issue at hand, such as torts, contracts, or property disputes.