State Farm Mutual Automobile Insurance Company, a Corporation Authorized to Do Business in New Jersey…

Summary

The Supreme Court of New Jersey affirmed the lower courts' judgment that Alabama law governs the automobile liability insurance contract and that, under Alabama law, the insurer was not liable for the accident. The Court held that the law of the place where the contract was made controls unless a more significant relationship of another state dictates otherwise. Justice Pashman dissented, arguing that New Jersey law should apply and the judgment should be reversed.