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 Tennessee, as in other states, the issue of which jurisdiction's laws apply to a lawsuit or dispute is governed by the principles of conflict of laws, also known as choice of law rules. These rules are designed to resolve questions of which state or jurisdiction's substantive law should be applied when there are competing interests. Tennessee courts will analyze the connections that the parties and the circumstances of the case have with different jurisdictions. Factors such as the place where a contract was signed, where a tort occurred, the residency of the parties, and the location of property or events in question can all influence the choice of law. If the parties have a valid choice of law clause in a contract, Tennessee courts will generally honor that agreement, unless it violates a fundamental public policy of the state. In the absence of such an agreement, Tennessee courts will apply conflict of laws principles to determine the most appropriate jurisdiction's laws to apply, taking into account the interests of justice and the relevant connections to the dispute.