Governing Law Clauses

If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement becomes enforceable or resides within thirty days after the lease agreement becomes enforceable or in which the goods are to be used, the choice of law is not enforceable. ORC § 1310.04

Yes. Ohio courts will generally apply the law of the state chosen by the parties to a contract to govern their contractual rights and duties.Extracorporeal Alliance, LLC v. Rosteck, 285 F.Supp.2d 1028, 1036 (N.D. Ohio 2003) 113 Fed Appx. 98 (6th Cir. 2004). This rule prevails unless: (1) the chosen state has no substantial relationship to the parties or to the transaction and there is no other reasonable basis for the parties; choice; or (2) the application of the law of the chosen state would be contrary to the fundamental policy of the state having a greater material interest in the issue than the chosen state, and such a state would be the state of the applicable law absent the choice of the parties. Sekeres v. Arbaugh, 31 Ohio St.3d 24, 508 N.E.2d 941 (1987); Schulke Radio Productions, Ltd. v. Midwestern Broadcasting Co. 6 Ohio St.3d 436, 453 N.E.2d 683 (1983).

In Ohio, a contractual choice of law provision is binding, so long as it is reasonable and does not violate the forum state’s fundamental policy. See Heiges v. JP Morgan Chase Bank, N.A., 521 F.Supp.2d 641 (N.D. Ohio 2007). 

In the absence of a choice of law provision, Ohio courts should apply the law of the state with the most significant relationship to the contract. See Extracorporeal Alliance, LLC v. Rosteck, 285 F.Supp.2d 1028, 1036 (N.D. Ohio 2003) aff’d 113 Fed Appx. 98 (6th Cir. 2004).