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Supreme Court clarifies diversity jurisdiction standard

  • Kelley Drye & Warren LLP
  • -
  • USA
  • -
  • February 25 2010

In a unanimous decision on February 23, 2010 in Hertz v. Friend, et al., No. 08-1107, --- S.Ct. ----, 2010 WL 605601, the Supreme Court clarified the test federal courts should apply to determine a corporation’s citizenship for purposes of diversity jurisdiction, holding that corporations are citizens of the state of their “nerve center” - usually their corporate headquarters - not of any state where a plurality of their business activity occurs