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Winsor v. Glasswerks PHX2/4/2003
not the tort claim brought by Winsor against Glasswerks. The contractual provision provides as follows:
Th Agreement is to be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed wholly within such State, without regard to the conflicts of laws principles thereof. (Emphasis added.)
Arizona courts will apply the law of the state chosen by the parties to govern their contractual relationship as long as the chosen law has some nexus with the parties or the contract. Nanini v. Nanini, 166 Ariz. 287, 290, 802 P.2d 438, 441 (App. 1990). However, Winsor's claims arise from tort law. "Claims arising in tort are not ordinarily controlled by a contractual choice of law provision. Rather, they are decided according to the law of the forum state." Sutter Home Winery, Inc. v. Vintage Selections, Ltd., 971 F.2d 401, 407 (9th Cir. 1992) (internal citation omitted); see also S. Union Co. v. Southwest Gas Co., 165 F. Supp. 2d. 1010, 1028 (D. Ariz. 2001).
The Ninth Circuit has recognized that contractual choice of law provisions may apply to tort claims under certain circumstances: "Whether a [choice of law provision] applies to tort claims depends on whether resolution of the claims relates to interpretation of the contract." Manetti-Farrow, Inc. v. Gucci Am., Inc., 858 F.2d 509, 514 (9th Cir. 1988). Here, Winsor's claim is for personal injuries based upon a product liability action. Winsor's tort claim arises independently of the contract between LabGlas and Glasswerks. Conversely, in Manetti-Farrow, the court concluded that the tort claims could "not be adjudicated without analyzing whether the parties were in compliance with the contract." Id. Thus, contrary to Winsor's assertion, the Manetti-Farrow holding does not persuade us that California law applies.
Without an applicable choice of law provision, Arizona courts follow the Restatement (Second) of Conflict of Laws (1971) (Conflict of Laws Restatement) to determine the controlling law. Bates v. Superior Court (Nationwide Ins. Co.), 156 Ariz. 46, 48, 749 P.2d 1367, 1369 (1988). Cases sounding in tort should be resolved under the law of the state having the most significant relationship to both the occurrence and the parties with respect to the particular issue. Conflict of Laws Restatement § 145(1). Factors taken into consideration include: (a) the place where the injury occurred, (b) the place where the conduct causing the injury occurred, (c) the domicile, residence, place of incorporation, and place of business of the parties, and (d) the place where the relationship, if any, between the parties is centered. Conflict of Laws Restatement § 145(2); Bates, 156 Ariz. at 49, 749 P.2d at 1370.
Application of these factors as follows leads us to conclude that Arizona law should apply. Winsor was injured in Arizona. The conduct causing the injury , i.e., the production of allegedly defective glass, occurred in Arizona. Winsor lives in Arizona and Glasswerks does business in Arizona. Although Glasswerks is incorporated in California, the place of business is generally a more important contact than the place of incorporation, and in cases involving personal injury to the plaintiff, the residence of the plaintiff is given greater weight. Conflict of Laws Restatement § 145(2), cmt. e; Bates, 156 Ariz. at 50, 749 P.2d at 1371. As to the factor that requires us to analyze the parties' relationship, the only relationship the parties share is this litigation. Therefore, this factor is not applicable.
Accordingly, applying the factors from the Conflict of Laws Restatement and Bates, we conclude that Arizona has the most significant
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