Archive for March 2nd, 2010

On February 23, the Supreme Court issued its decision in Hertz Corp. v. Friend, No. 08-1107, in which it adopted the “nerve center” test as the proper approach for determining a corporation’s principal place of business for diversity jurisdiction.  The Court stated that it was adopting a single test among the numerous approaches previously employed by the lower federal courts “[i]n an effort to find a single, more uniform interpretation of the statutory phrase [“principal place of business.”]  The decision promises to bring more predictability to the resolution of an often-litigated issue in the context of removal of class actions under the Class Action Fairness Act of 2005.

For a good synopsis of the decision and its potential impact in the class action removal context, read Karen P. Palmersheim’s article at www.lexology.com entitled Supreme Court’s decision opens doors to lawsuits under the federal Class Action Fairness Act.

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