Benchmark Electronics bought a company from Huber and later sued for fraud and breach of contract after the business failed. The court ruled that while the contract's choice-of-law clause made New York law apply to breach claims, Texas law applied to fraud and misrepresentation claims instead. The court also said Benchmark's fraud allegations were detailed enough to survive dismissal. This matters because it shows courts won't always apply the law you agreed to in your contract—especially for fraud claims.
Choice-of-law clauses in contracts don't always control. Courts may apply different state laws to fraud and misrepresentation claims even if your contract says otherwise.