Brack

The principal defendant in this class action lawsuit, respondent Omni Loan Company, Ltd. (Omni), a Nevada corporation, engaged in consumer lending in California. Although Omni’s activities would otherwise be subject to the California Finance Lenders Law (Finance Lenders Law) (Fin. Code, § 22000 et seq.), under choice-of-law provisions in Omni’s loan agreements borrowers agreed Omni’s loans would be governed by the law of Nevada. We conclude this choice of Nevada law is not enforceable.

In general, California courts will enforce a contractual choice of law if the state whose law was chosen has an interest in the parties’ controversy. However, if application of the chosen law conflicts with a fundamental policy of this state, our courts must consider the impact application of the law will have on California’s interests. If California’s interests are materially greater than the interests of the state whose law was chosen by the parties, California will apply its law.

As we explain more fully below, here because application of Nevada law would conflict with fundamental California policy as manifested in the Finance Lenders Law and because California has a greater interest…