Supreme Court of New Jersey
State Farm Mutual Automobile Insurance Company, a Corporation Authorized to Do Business in New Jersey…
July 25, 198084 N.J. 28
Summary
The Supreme Court of New Jersey affirmed the lower courts, holding that Alabama law governs the automobile liability insurance contract because the contract was made there and no contrary significant relationship outweighs that rule, and under Alabama law the insurer is not liable for the accident. The Court declined to apply New Jersey law and affirmed the judgment of the Appellate Division. Justice Pashman dissented, arguing that New Jersey law should apply.