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.

Full story available at:
http://www.abajournal.com/news/article/supreme_court_adopts_headquarters_test_hampering_forum-shopping_plaintiffs/