A court (assuming it is a regular court) can only adjudicate within its jurisdiction. So a lawsuit filed in a court would have to refer to laws within the courts jurisdiction. No court would use the laws of another jurisdiction since it would basically be unqualified to make a judgement.
If one party in country A wants to sue a party in country B, they have to determine which laws are in force in which country and where the faulty action occurred. There is no point suing in country A for a law only in effect in country B and vice versa. And very often if the alleged faulty action is committed in country A, the courts in country B will refuse the case (this is not ALWAYS true but nearly always).
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