North Montana Will Apply The Choice Of Law Essay

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The main question in this exercise is whether North Montana will apply the choice of law provision in the contract between Good Hands and the Walmsleys. A forum applies its own choice of law approach. So here the North Montana Court will apply the Second Restatement of Conflicts of Laws as the state follows that approach. Under the Second Restatement, three main steps need to be considered: 1) whether the conflict is procedural or substantive, 2) whether there is a choice of law provision in the contract, and whether that provision should be applied, and 3) the application of the choice of law rules from the Second Restatement. Here, it appears that the choice of law provision selecting Old York should be applied because none of the exceptions to the general rule apply.
I. Procedural vs. Substantive Law
The first step under the Second Restatement approach is to determine whether the forum’s rule is procedural or substantive. If a rule is procedural than a forum will apply its own law. Courts using the Second Restatement follows the applicable provisions in the restatement. This is similar to the first restatement besides evidentiary privileges and statute of limitations. One of the main tests is whether a section of the Second Restatement classifies a question as substantive. Section 193 of the Second Restatement, which is found in the Contracts rather than the Procedure chapter, governs the validity of insurance contracts. Here, the question is about the validity

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