Marc Jacobs Published on Directorship.com
“High Court Clarifies Where ‘Home’ Is for Corporations”

Marc Jacobs' article, “High Court Clarifies Where ‘Home’ Is for Corporations,” was published on March 3, 2010 on Directorship.com. In his article, Marc reports that on February 23, 2010, in Hertz Corporation v. Friend, the Supreme Court resolved that "principal place of business" means "the place where the corporation's high-level officers direct, control and coordinate the corporation's activities," commonly referred to as the corporation's "nerve center." According to Marc, plaintiffs often sue in state court, while defendant employers usually prefer federal court. The Court’s decision clarifies the test for determining the “citizenship” of corporations so that defendants now can more confidently determine whether the case can be removed to federal court. Marc further explains that now, if an employer is sued in a state other than its state of incorporation or the location of its “nerve center,” the Hertz decision makes federal court a viable option, even if the employer does a substantial amount of business in the state where the lawsuit was filed.