Collins & Aikman Corp. v. Hartford Accident & Indemnity Co.

Contrary to the majority, I conclude that N.C.G.S. § 58-3-1 does not control the choice of law question here. Rather, I believe that- the traditional rule of lex loci contractus applies, and thus, California law is the correct law to be applied in this case. Assuming arguendo, however, that North Carolina law is the correct choice, I conclude that the language of the policy does not cover awards of punitive damages, as the policy was limited to damages “because *98of bodily injury” and excludes “fines and penalties” from recovery. I therefore dissent.

As the majority notes, Wickes Companies, Inc.…