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Thursday, December 2, 2010

New York court ignores Colorado choice of law provision

A New York courts will enforce contractual choice of law provisions, but only if the provision bears "a reasonable relationship to the parties or the transaction."  In Sheppard Mullin Richter & Hampton LLP's recent New York Commercial Division Roundup, lawyer Sean R. Kirby notes a recent decision where the plaintiff was a delaware corporation with its principal place of business in Nebraska; the defendant was a New York corporation with its principal place of business in New York; but the contracts at issue specified Colorado law.

Justice Eileen Bransten held that Colorado had no connection to the case, and applied New York law.  The case is Transfirst EPayment Services, Inc. v. Advanced Marketing Research, Ltd.,Index No. 602536/2008 (N.Y. Sup. Ct. N.Y. Cty. Sept. 29, 2010).

FGS

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Comments

This makes me glad I don't practice in NY, because I doubt many states wouldn't respect freedom of contract.

Posted by: Chris Lane | Dec 10, 2010 9:19:35 AM

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