Lauren Vincent


After the Supreme Court of the United States announced in Hertz Corp. v. Friend that a corporation’s principal place of business is its “nerve center” – i.e., its “center of direction, control, and coordination” – the complexity associated with determining a corporation’s principal place of business seemed to be a thing of the past. Although the Hertz decision brought substantial clarity to the issue of corporate diversity jurisdiction, its one-size-fits-all test for determining principal place of business has proven less than straightforward when applied to modern corporate structures – notably, holding companies. This Note addresses one perplexing problem that Hertz’s “nerve center” test failed to anticipate: How should courts determine the “principal place of business” of a corporation that is designed to engage in few, if any, substantial business activities, such as a holding corporation?

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