Supreme Court Simplifies Place Of Business Rule

By Hilary Russ (February 23, 2010, 6:44 PM EST) -- In a decision that will help corporations determine whether they can take litigation to federal court, the U.S. Supreme Court on Tuesday adopted a test that locates a corporation's principal place of business at its headquarters.

The high court's unanimous decision sought the simplest path to clarity in what had become an increasingly confusing landscape of circuit court decisions over the question of diversity jurisdiction, with justices settling on the so-called nerve center test as the best — yet still imperfect — way to figure out whether a case can be removed to federal court.

"This allows courts and litigants alike...

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