Legal Question in Business Law in Pennsylvania

Conflict of Laws - Statue of Limitation

Conflict of laws:

A resident of New Jersey (NJ) (Individual), performed consulting services under contract for a Company (Co.) established in Pennsylvania (PA). The majority of work (90+%) was done in Connecticut, and New Jersey.

Contract was written & provided arbitration by American Arbitration Association.

For a resident of New Jersey the Statue of Limitations is 6 years,

For a resident of Pennsylvania the Statue of Limitations is 6 years.

Under American Arbitration Association (AAA) rules, there is no statue of limitation.

Co. is taking the position that as it is established in PA, the 4 year statue of limitation should apply.

The individual says either NJ or AAA statue of limitation should apply.

What is correct? When there is a conflict of laws, which law will apply?

Asked on 3/21/03, 2:43 pm

2 Answers from Attorneys

Walter LeVine Walter D. LeVine, Esq.

Re: Conflict of Laws - Statue of Limitation

Check the contract first. Contracts usually have a clause stating which state law controls disputes. In the absence of a contract provision, this will be determined by the arbitrator. However, if the arbitrator's decision is incorrect, a Court can change his determination based upon erroneous determination of what law applies.

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Answered on 3/22/03, 12:38 pm
Bernard J. Berkowitz Berkowitz & Raiken

Re: Conflict of Laws - Statue of Limitation

Usually there is a clause in the contract saying what law aplies. If not, then it would be up to the Arbitor to decide based upon the state with the most contact (i.e. taxes, office, mail)

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Answered on 3/21/03, 4:41 pm

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