(1) Tort claims are governed by the law of the State in which the liable party has acted. The injured party can demand that instead of this law, the law of the State in which the injury occurred is to be applied. The option can be used only in the first instance court until the conclusion of the pretrial hearing or until the end of the written preliminary procedure.
(2) If, at the time of the occurrence of the event underlying the liability, the liable party and the injured party both are habitually resident in the same State, the law of that State shall apply. For companies or firms and other bodies incorporate or unincorporate, the principal establishment, or where a branch is involved, this establishment, shall be treated as the place of the habitual residence.
(3) Claims governed by the law of another State cannot be raised insofar as they
1. go substantially beyond what is necessary for an adequate compensation of the injured party,
2. obviously serve purposes other than an adequate compensation of the injured party or
3. collide with liability rules under a convention in force in the Federal Republic of Germany.
(4) The injured party may bring his or her claim directly against the insurer of the person liable to provide compensation if the applicable tort law or the law applicable to the insurance contract so provides.