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 Dakota, as in other states, when a lawsuit or dispute involves multiple states or jurisdictions, the determination of which law applies is guided by the principles of 'conflict of laws' or 'choice of law.' These principles are designed to resolve issues where laws of different jurisdictions may conflict. South Dakota courts will consider various factors to decide which jurisdiction's laws are most appropriate to apply to the case at hand. These factors can include the location where a contract was signed, where the parties reside, where a tort was committed, or where property in dispute is located. Additionally, if the parties have a valid contract that includes a choice of law provision, South Dakota courts will generally honor such agreements, unless the chosen law violates a fundamental policy of the state. In cases involving federal law, federal courts may have jurisdiction, and federal preemption may dictate that federal law applies over state law when there is a conflict.