Tuesday, February 23, 2010

Supreme Court Adopts Headquarters Test, Hampering Forum-Shopping Plaintiffs

High court defines 'headquarters' (February 23, 2010)

The U.S. Supreme Court may have made it more difficult for tort lawyers to bring lawsuits in plaintiff-friendly state courts with today's ruling that a company's principal place of business is typically its headquarters. The 9-0 ruling, authored by Justice Stephen G. Breyer, said a company should be considered a citizen of a state where its "nerve center" is located. The "nerve center" test will be used to establish diversity jurisdiction, allowing more lawsuits to be tried in federal rather than state courts.

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