DeLorean v. DeLorean
The 1986 New Jersey case where a California choice-of-law clause was rejected by a New Jersey court applying New Jersey law instead — the canonical "choice of law isn't a guarantee" case.
John DeLorean and his wife signed a California prenup with a California choice-of-law clause. They later moved to New Jersey and divorced there. The New Jersey court refused to apply California law, holding that New Jersey had the most significant relationship and that applying the lenient California law would violate New Jersey public policy. The case is cited every time couples ask whether a choice-of-law clause is enough to lock in the favorable state's rules.
Related terms
- Choice of Law — A clause specifying which state's law will govern the interpretation of a contract. In prenups, often used by couples likely to move — but not always honored by future courts.
- Public Policy — A judicial doctrine that allows courts to refuse to enforce contracts that violate fundamental societal interests, even when the contract is otherwise valid.
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