Transcript Klaxon - University of Missouri–Kansas City School of Law

Klaxon
• Federal courts in diversity cases
apply the choice of law rules of the
state in which they sit
• Thus, the US District Courts in MO
do not necessarily apply MO law
• Instead, they apply whatever law a
MO state court would apply in the
same case.
What if You Don’t Know Klaxon
• Paul (PA) & Deb (DE) agree to
share PA lottery ticket proceeds
–Negotiations mainly in PA
–Acceptance in DE
I’ll
get
½
• Choice of Law
Under
–PA -- place of acceptance
DE Law
–DE -- place of negotiations
• Substantive Law
Deb sues
–PA – Unenforceable
in DE
–DE – Enforceable
Federal Ct