The 9th Circuit dealt with conflict-of-laws in a bankruptcy case involving a contract’s choice-of-law clause. The Court noted that in bankruptcy cases, federal choice-of-law governs which state law applies in a dispute. This case involved a promissory note, which provided that Ohio law would apply to lawsuits brought under the note.
Debtors purchased a condo in California, but one of the notes entered into by the Debtors contained a clause stating that: “[N]ote shall be governed by and construed in accordance with the laws of Ohio, without regard to conflict of law principles.”
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