Tamarack Capital, LLC v. Access Healthsource, Inc.

MEMORANDUM **

Defendant Access Healthsource, Inc. appeals the district court’s award of contract damages and attorneys fees to Plaintiffs Tamarack Capital, LLC and Tamarack Insurance, LLC. Because we conclude that the contracts are governed by Arizona law, and because Tamarack’s lack of a Texas insurance license does not render the agreements unenforceable, we affirm the judgment. As the parties are familiar with the facts, procedural history, and arguments, we cite them only as necessary.

Federal jurisdiction over this contract action was based on diversity. The district court sitting in diversity must look to Arizona’s choice of law rules, which in turn, requires the court to follow the Restatement (Second) on Conflict of Laws (“Restatement”). See Patton v. Cox, 276 F.3d 493, 495 (9th Cir.2002); Swanson v. Image Bank, Inc., 206 Ariz. 264 , 77 P.3d 439, 441 (2003). Both contracts provide that Arizona law should govern, and according to Restatement § 187(2)(b), the parties’ choice of law provision will be honored unless “application of the law of the chosen state would be contrary to a fundamental policy of a state which has a materially greater interest than the chosen state in…