Procedural Vs. Substantive Law

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A forum applies its own choice of law approach. So here North Montana 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 a choice of law provision in a contract should be applied, and 3) the application of a choice of law rule. 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 a rule is rule is procedural or substantive. If a rule is procedural than a forum will apply its own law. Courts determine whether a law is substantive based on whether a section of the restatement classifies it as substantive. Section 193 of the Second Restatement governs the validity of insurance contracts. Here, the question is about the validity of a provision in an insurance contract, thus the Second Restatement classifies this dispute as substantive, not procedural.
II. Choice of Law Provision
The second step under the Second Restatement is to consider any choice of law provisions within the contract at issue. Here, the insurance contract has a choice of law provision that states “[t]his agreement is governed by the law of Old York.” Under Section 187 of the Second Restatement, choice of law provisions are

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