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Today, all 9 Justices embrace a clear rule over a more nuanced and litigation-breeding interpretation.

Now, there's a whole day of Civil Procedure class notes down the drain!

In Hertz Corp. v. Friend (PDF), the Supreme Court unanimously adopted the "nerve center" test as the meaning of a corporation's "principal place of business" for the purpose of federal court diversity jurisdiction (i.e., cases that can be brought in federal court not because they arise under federal law, but because they are between citizens from different states):

We ... recognize that the use of a "nerve center" test may in some cases produce results that seem to cut against the basic rationale for 28 U. S. C. §1332.... For example, if the bulk of a company's business activities visible to the public take place in New Jersey, while its top officers direct those activities just across the river in New York, the "principal place of business" is New York. One could argue that members of the public in New Jersey would be less likely to be prejudiced against the corporation than persons in New York ? yet the corporation will still be entitled to remove a New Jersey state case to federal court....

We understand that such seeming anomalies will arise. However, in view of the necessity of having a clearer rule, we must accept them. Accepting occasionally counterintuitive results is the price the legal system must pay to avoid overly complex jurisdictional administration while producing the benefits that accompany a more uniform legal system.

That "One could argue" business has fueled endless hours of Civil Procedure discussions. But no more! Thanks for simplifying things? even if it means that diversity jurisdiction makes even less sense than ever. Which is a good thing, right?

Full post as published by Althouse on February 23, 2010 (boomark / email).