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 California, as in other states, the body of law known as 'conflict of laws' or 'choice of law' is used to determine which jurisdiction's laws are applicable in a lawsuit when multiple states or jurisdictions have a significant relationship to the parties or circumstances involved. California courts typically apply a 'governmental interest analysis' to resolve conflict of laws issues. This approach involves identifying the respective interests of the jurisdictions involved and determining which jurisdiction's interest would be more impaired if its law were not applied. Factors that may influence the decision include the connection of the parties to the jurisdictions, the nature and location of the underlying events, and public policy considerations. When parties have a contractual agreement that includes a choice of law provision, California courts will generally honor such provisions, provided they are not contrary to a fundamental policy of a state with a materially greater interest than the chosen state and there is no substantial relationship to the chosen state. However, in the absence of such an agreement, the courts will use the conflict of laws principles to decide which state's laws should govern the dispute.