• U.S. Supreme Court Brings Uniformity to the Determination of A Corporation’s Principal Place of Business
  • March 17, 2010
  • Law Firm: Blank Rome LLP - Philadelphia Office
  • In a decision likely to have significant consequences for federal subject-matter jurisdiction, Hertz Corp. v. Friend et al., No. 08-1107 (U.S. February 23, 2010), the United States Supreme Court clarified a jumble of approaches used by the lower federal courts and endorsed the “nerve center” test for determining a corporation’s principal place of business for purposes of establishing diversity among litigants. This decision will often affect where a corporation with geographically diverse business activities may be subject to suit in federal court on diversity grounds, and should lead to greater predictability in determining when a federal court will find diversity jurisdiction to be present.