The U.S. Supreme Court heard oral arguments Tuesday in a case that asks: For purposes of diversity jurisdiction, where is a company's principal place of business? The answer will be crucial in determining whether a corporation can be sued in federal court or in plaintiff-friendly state courts. Though most of the Court appeared to embrace some version of a headquarters standard, some justices appeared concerned about the possibility that it might result in abuse by corporations seeking to avoid state courts.
Justices Sympathetic to Applying Headquarters Standard to Corporate Jurisdiction
The National Law Journal
November 11, 2009