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 South Carolina, 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' or 'choice of law.' These principles are designed to resolve questions of which state or jurisdiction's substantive law should be applied when a case has connections to more than one jurisdiction. South Carolina courts will analyze factors such as the domicile, residence, nationality, place of injury, place of transaction, and location of the subject matter to determine the most appropriate legal system and substantive law to apply to the case. This analysis is often complex and can involve considerations of public policy, the interests of the states involved, and the expectations of the parties. If the parties have a valid choice of law agreement, typically found in contracts, South Carolina courts will generally honor such agreements unless they are contrary to a fundamental policy of the state or there is no substantial relationship to the chosen state. In the absence of such an agreement, South Carolina courts will apply conflict of laws principles to decide the governing law.