Hertz Corp. v. Friend
United States Supreme Court
130 S.Ct. 1181 (2010)
Friend and other Hertz Corporation (Hertz) (defendant) employees filed a California class action alleging wage-and-hour violations; Hertz sought removal to federal court under diversity jurisdiction, but the employees (plaintiffs) argued Hertz's principal place of business was California, since it earned more revenue there than any other state and conducted the majority of its business activities there. The district court and Ninth Circuit agreed Hertz was a California citizen, and Hertz sought Supreme Court review.
Whether a corporation's principal place of business, for federal diversity jurisdiction purposes, refers to the state where it conducts the most business activity or generates the most revenue, or instead to the location where its top officers direct and coordinate the company as a whole.