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 Ohio, as in other states, when a lawsuit or dispute involves multiple states or jurisdictions, the determination of which law applies is governed by the principles of 'conflict of laws' or 'choice of law.' These principles are designed to resolve issues where more than one potential set of laws could apply to a given legal matter. Ohio courts will analyze various factors to decide which jurisdiction's laws are most appropriate to apply to the case at hand. These factors may 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 nature of the legal issue. Additionally, Ohio courts will respect and enforce choice of law clauses in contracts where the parties have previously agreed upon which jurisdiction's laws will govern their dispute, provided that the chosen law bears a reasonable relation to the contract and is not contrary to a fundamental policy of a state with a materially greater interest in the issue.