Tuesday, June 9, 2009

Cert. Granted

Yesterday, the Supreme Court granted certiorari on the following issue:  For purposes of determining principal place of business for diversity jurisdiction citizenship under 28 U.S.C. § 1332, can court disregard location of nationwide corporation's headquarters--i.e., its nerve center?  The case is Hertz. Corp. v. Friend from the 9th Circuit, 297 Fed. Appx. 690.   --RR

Hat tip to Ben Spencer.


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What is interesting about this case is that it has the potential for reducing the availability of federal court in populous states such as California or New York. If the test is going to be where the corporation has a predominance of operations instead of where its headquarters is located, which may house only a relatively few number of employees, then corporations such as Hertz which has many more employees in California than in its headquarters state of New Jersey, is going to find itself unable to remove cases to federal court on diversity grounds in the state where its largest operations are located.

Posted by: Joe Markowitz | Jun 17, 2009 2:01:11 PM

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