Jurisdiction, Venue, and Forum
Jurisdiction
Hertz established that principal place of business means the place where officers direct, control, and coordinate activities, normally the corporate headquarters. It replaced tests weighing operational activity by location.
The test produces a single location.
Alternative Names:
Nerve Center|Principal Place of Business Test
Why it Matters?
Hertz simplified the analysis by rejecting business activity tests that could locate a principal place of business where most operations occurred, which means a company headquartered in one state with all operations in another is a citizen of the headquarters state. That produces diversity in cases where the older tests would not, and confirming the actual location of executive direction rather than the registered address is the analysis.
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Frequently asked questions
What did Hertz establish?
What is the practical effect?
