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New York Court of Appeals Addresses Choice of Law Challenges

This June, the New York Court of Appeals undertook the examination of the application of a New York Choice of Law provision in a contract. This was a determinative issue for the case, as the applicable choice of law decided whether the plaintiff’s claims were subject to Ontario, Canada’s 2 year statute of limitations or New York’s 6 year statute of limitations for breach of contract. The court found that, pursuant to New York’s borrowing statute, Ontario’s more restrictive statute of limitations applied.  The action was dismissed as time-barred, serving as a harsh reminder of the potential effects of choice of law and limitations periods.  The court’s rationale has important implications for the insurance industry, as many policies contain choice of law provisions.

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Jul 24, 2018
Grace V. Hebbel