stiff approach whereby the choice of laws would be determined by either the place of the injury or the place of the contract. In this day and age, particularly with the advances in transportation and communication, it is common to find lawsuits between people or corporations who in fact do business in many states all across the Nation. It is therefore more necessary to look to that jurisdiction which has more contacts with and more interest in the matter at issue rather than any static application of antiquated laws.
It is true that the testimony and the pleadings and evidence in this case indicate that both Plaintiff and Defendant have offices in and do business in a variety of states throughout the Nation. It is not uncommon to find that large corporations doing business in a variety of states will select a mecca such as New York City to have headquarters offices from which much of their negotiations or business contacts are spawned.
Nonetheless, in this case we find from the testimony and the evidence, that while the Plaintiff does in fact have an office in New York City, as does the Defendant, and while much of the negotiations for this contract did in fact take place in New York, we find also that the Plaintiff Corporations has not only offices, but a substantial business enterprise in Pittston, Pennsylvania, and the subject of this lawsuit is entirely located in Pittston, Pennsylvania.
Indeed we find that many of the meetings involved in negotiating this contract did take place in New York, but the testimony also reveals that much of the negotiation was done by telephone and that there were telephonic communication with Pennsylvania, as well as many physical visits into this state, particularly for the purpose of looking over the holdings of the Plaintiff that were to be insured within the boundaries of this Commonwealth.
Additionally we find that the Commonwealth of Pennsylvania has a very substantial interest in protecting the rights of its corporate entities, as well as those with whom they do business. The Defendant Company in this case chose to do business within the confines of the Commonwealth of Pennsylvania, and the business of insuring against catastrophic losses is one in which the Commonwealth has a very distinct interest. It is known, and was indicated in this case, that insurance companies must indeed file with the various states in which they do business and must abide in the drafting and writing and issuing of their policies, not only in the state where their headquarter's office is located, but in any state in which they issue a policy. This, of course, allows the state in which the property covered is located to maintain its own methods of assuring that the coverage is properly written and any losses are properly administered. The insurance Company Law of May 17, 1921, P.L. 682, as amended, Pa.Stat.Ann. tit. 40, § 341 et seq. (Purdon), and the Insurance Department Act of May 17, 1921, P.L. 789, as amended, Pa.Stat.Ann. tit. 40, § 1 et seq., (Purdon), now provide the basic regulation for Pennsylvania insurance carriers.
The Defendant does make the interesting observation that the coverage at issue in this case is not on any real property as such, but covers the business loss claimed by the Plaintiff. Nonetheless, it's a very substantial and a very direct concern of the Plaintiff because it is a loss that allegedly runs into many millions of dollars and affects many of the residents of the Commonwealth of Pennsylvania in a variety of ways, not the least of which are the provision of fire protection, the loss of business to the community in which the Plaintiff was established, the loss of jobs, and the transfer of that business to another community. These are all vital interests of the state in which the Plaintiff's business, covered by this insurance policy, was located. On the other hand, there is very little interest that the State of New York would have in this litigation. The most significant item that concerns New York State was that perhaps one could arguably find that the policy was indeed written in New York State. This, under the test outlined in the Griffith and Melville and Restatement approach to solving this problem, is not sufficient.
The Defendant makes the argument that there is no single contract case in Pennsylvania which specifically adopts the contacts and interest analysis approach, and therefore the old approach of the place of the contract must still be the law of this Commonwealth. We do not subscribe to that argument and indeed in many of the cases (such as Crawford, 208 Pa.Super. at 150, 221 A.2d 877) cited to bolster this argument, we find the Courts referring to both tests and indicating rather strongly that the Griffith test is the one most aptly applied in a situation such as this. For instance, see the one-liner of Judge Hoffman in Crawford where he indicates that the Griffith test was also applied in reaching the judgment in that case. This approach makes extremely good sense, because as is pointed out in the Restatement (Second) of Conflicts, Section 6, Note (f), "in general, it is fitting that the state whose interests are most deeply affected should have its local laws applied."
In fact, it is interesting to note that while the claim in Griffith was for personal injuries, it was in fact an assumpsit action based on the Plaintiff's theory that the Defendant violated a contract for safe carriage or travel. We recognize, of course, that the laws of negligence were applied in the case, but nonetheless, throughout the opinion one finds constant reference to the negligent violation of contract. Also, in Melville, Judge Garth writing for the Third Circuit Court, very clearly pointed out the logical reasons why the Griffith -Restatement approach should be applied in contract actions as well as in tort actions. On further analysis of a number of the cases we have reviewed, as well as those submitted by counsel for both parties, we find too a variety of courts holding that the Griffith -Restatement approach applies in Pennsylvania to both tort and contract actions alike. We see no reason why this Court should not follow that same philosophy and pattern, indeed, it is our finding that we are bound to do so. (See Note 4).