Supreme Court Holds That the Principal Place of Business, for the Purposes of Diversity of Citizenship, Refers to the "Nerve Center," or the Place Where the Corporation's High Level Officers Direct...

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Melinda Friend and John Nhieu (hereinafter "Friend"), two citizens of California, sued Hertz Corporation in California state court for violations of the state wage and hour laws. Hertz subsequently filed a notice of removal to federal court, claiming that the plaintiffs and the defendant were citizens of different states and that the federal court possessed diversity jurisdiction. Friend claimed that diversity jurisdiction was lacking because Hertz was a California citizen. Hertz submitted a declaration from an employee, which opined that the principal place of business was in New Jersey because Hertz's core executive, leadership and administrative activities are carried out at its headquarters located in New Jersey. The district court accepted Hertz's declaration as undisputed, but concluded that Hertz was a citizen of California based on Ninth Circuit precedent. The Ninth Circuit had previously held that the "principal place of business" is determined by...

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Lane Powell PC on:

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