Legal Definitions - grouping-of-contacts theory

The grouping-of-contacts theory, also known as the center-of-gravity doctrine, is a rule used in conflict of laws cases. It states that the law of the jurisdiction with the most significant relationship to the transaction or event applies.

For example, if a person from New York gets into a car accident while driving in California, the court will apply the law of the state where the accident occurred. However, if the accident was caused by a defect in the car that was manufactured in Michigan, the court may apply the law of Michigan because it has a significant relationship to the transaction.

The grouping-of-contacts theory helps courts determine which jurisdiction's law should apply in cases where multiple states or countries are involved. By considering the location of the parties, the place of the transaction, and other relevant factors, the court can make a fair and just decision.