Last year, the U.S. Supreme Court resolved a conflict among the federal circuits by establishing a uniform interpretation of the phrase “principal place of business” for determining corporate citizenship under 28 U.S.C. ' 1332(a), the federal diversity jurisdiction statute (the “Diversity Statute”).
Federal District Court Applies Supreme Court's 'Nerve Center' Test
While corporate executives and their advisers will no doubt appreciate the certainty provided by the Supreme Court's affirmation of the "nerve center" test for determining a corporation's principal place of business, they must be mindful that the courts will focus on the actual "center of direction, control, and coordination" rather than artificial attempts to manipulate jurisdiction.
By
Robert S. Reder, David S. Schwartz And Brian P. MurphyThis premium content is locked for LawJournalNewsletters subscribers only
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