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U.S. Supreme Court

Case Status

Decided

Docket Number

08-1107

Term

2009 Term

Oral Argument Date

November 10, 2009

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Questions Presented

Whether, for purposes of determining principal place of business for diversity jurisdiction citizenship under 28 U.S.C. § 1332, a court can disregard the location of a nationwide corporation's headquarters - i.e., its nerve center.

Case Updates

Supreme Court decides principal place of business test

February 23, 2010

The Supreme Court unanimously adopted the Seventh Circuit's “nerve center” test when determining a corporation's principal place of business for the purpose of diversity jurisdiction.

U.S. Chamber files amicus brief

August 17, 2009

NCLC urged the Supreme Court to adopt the Seventh Circuit's 'nerve center' test when determining a corporation's principal place of business for the purpose of diversity jurisdiction. Under the 'nerve center' test, a state court has jurisdiction to hear a case involving a particular corporation if that corporation is headquartered in the state. The Ninth Circuit ruled that Hertz' principal place of business is California, even though Hertz is headquartered in New Jersey. NCLC noted federal circuit courts apply various principal place of business tests that yield conflicting and unpredictable outcomes. NCLC singled out the Ninth Circuit's elastic and ill-defined test as particularly troublesome because it generates excessive unpredictability and encourages expensive litigation for corporations that operate in multiple states.

Cert. petition granted

June 08, 2009

U.S. Chamber urges Supreme Court to review principal place of business test

April 06, 2009

Click here to view the Chamber's brief.

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