Kentucky environmental attorney Sanders says US Supreme Court settles on “nerve center” to determine a corporation’s principle place of business.

The U.S. Supreme Court recently settled on the “nerve center” test to determine a corporation’s principle place of business for purposes of determining subject matter jurisdiction. Hertz Corp. v. Melinda Friend, et al., No. 08-1107 (S.Ct. 2/23/10). 

The corporation’s “nerve center” refers to the place where a corporation’s officers direct, control, and coordinate the corporation’s activities.  Normally, the nerve center is where the corporation maintains its headquarters — provided that the headquarters is the actual center of direction, control, and coordination, i.e., the “nerve center,” and not simply an office where the corporation holds its board meetings.  

The Court’s opinion is a long, rich and detailed history of deciphering the phrase “principal place of business.”  The Supreme Court opinion is attached to this post. Hertz Corp. v. Friend, Jurisdictional Issue