Labor & Employment Law

US Supreme Court: Corporation's "principal place of business" is its "nerve center"

The US Supreme Court today resolved the issue of determining a corporation's "principal place of business" for purposes of diversity jurisdiction under 28 USC Section 1332(c)(1).

We conclude that "principal place of business" is best read as referring to the place where a corporation?s officers direct, control, and coordinate the corporation?s activities. It is the place that Courts of Appeals have called the corporation?s "nerve center." And in practice it should normally be the place where the corporation maintains its headquarters - provided that the headquarters is the actual center of direction, control, and coordination, i.e., the "nerve center," and not simply an office where the corporation holds its board meetings (for example, attended by directors and officers who have traveled there for the occasion).

Hertz Corp v. Friend (US Supreme Court 02/23/2010).

[Opinion]

Full post as published by Ross' Employment Law Blog on February 23, 2010 (boomark / email).