Tips for In-House Counsel
June 3, 2010
Hertz Corp. v. Friend: A Corporation's Principal Place of Business Is Its “Nerve Center”
By Josh Lawler and Yuri Mikulka of Zuber & Taillieu LLP
INTRODUCTION
The U.S. Supreme Court has resolved the issue of how to determine the “principal place of business” of multistate corporations for the purpose of diversity jurisdiction, defining as the corporation’s “nerve center.” The decision in Hertz Corp. v. Friend, 130 S.Ct. 1181 (2010), ends the “divergent and increasingly complex interpretations” of the phrase “principal place of business” applied by the various federal courts of appeals. The decision fundamentally changes how most lower courts will determine corporate citizenship for diversity purposes, enabling increased predictability and certainty for parties on both sides of litigation.
BACKGROUND
Plaintiff Melinda Friend and other Hertz Corporation…
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About the Authors
Josh Lawler is a Partner of Zuber & Taillieu LLP, focusing on corporate law and securities and finance law.
Yuri Mikulka is a Partner of Zuber & Taillieu LLP, and chairs its litigation department.