Century 21 Real Estate LLC v. All Professional Realty, Inc.

MEMORANDUM

Carol and Steve Wright appeal the district court’s judgment in favor of Century 21 Real Estate LLC (“Century 21”). We have jurisdiction pursuant to 28 U.S.C. § 1291 , and we affirm.

1. The district court did not err in finding the New Jersey choice-of-law provisions in the franchise agreements enforceable. Century 21 has its principal place of business and headquarters in New Jersey. Thus, the chosen state has both a substantial relationship with the transaction, and a reasonable basis exists for the parties’ choice of law. ABF Capital Corp. v. Osley, 414 F.3d 1061, 1065 (9th Cir. 2005). Moreover, the application of New Jersey law here is not contrary to a fundamental policy of California. See Nedlloyd Lines B.V. v. Superior Court, 3 Cal.4th 459 , 11 Cal.Rptr.2d 330 , 834 P.2d 1148, 1152 (1992). The franchise agreements already incorporate the good cause provision found in the California Franchise Relations Act. Cal. Bus. & Prof.Code § 20020. Although New Jersey appears not to have an unfair competition law similar to that of California, “[t]he mere fact that the chosen law provides greater or lesser protection than California law, or that in a particular application…