Home Is Where the HQ Is: Corporate Citizenship Following the Supreme Court's Decision in Hertz v. Friend

Sean-Patrick Wilson, Latham & Watkins LLP
Keena M. Hausmann, Latham & Watkins LLP
Paul A. Rosenthal, Latham & Watkins LLP

Abstract

On February 23, 2010, the United States Supreme Court released its decision in the case of Hertz Corp. v. Friend, 559 U.S. ___ (2010), no. 08-1107 (“Hertz”). Th Hertz case represents the only time the Supreme Court has addressed the question of where a business’s “principal place of business” is located for purposes of determining diversity jurisdiction. The Court’s ruling is certain to have significant ramifications for American corporations, as it determines when corporations can be sued in federal court (as they might prefer), or in plaintiff-friendly state courts.

As the most authoritative case discussing diversity jurisdiction for corporations today, Hertz is likely to find its way into Civil Procedure and Federal Courts textbooks as early as this Summer/Fall 2010. Our short article / case brief entitled “Home Is Where the HQ Is: Corporate Citizenship Following the Supreme Court's Decision in Hertz v. Friend ,”summarizes and analyzes the reasoning of the Supreme Court's opinion, and the practical implications arising from the Court's holding.