Also known as: nerve centers · nerve-centre · principal place of business · corporate nerve center
Written by attorneys · grounded in primary & secondary sources — see below
The place where a corporation's high-level officers direct, control, and coordinate its activities. This location serves as the corporation's principal place of business for purposes of determining citizenship under diversity jurisdiction statutes.
Northern Manufacturing faces a products liability suit in a state where it sells thousands of units annually but maintains no executive offices. The plaintiff argues that the volume of sales creates general jurisdiction. The court rejects the claim because the corporation's high-level decision making occurs elsewhere.
Nile Shipping sues a Delaware supplier in federal court. Nile is incorporated in Delaware but its officers meet weekly at a New Jersey headquarters to set routes and pricing. The defendant moves to dismiss for lack of diversity, asserting that Nile's citizenship includes New Jersey.
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Nobel Dynamics is sued in a state where it operates several factories and employs hundreds of workers. The claims arise from events in another state. The court dismisses for lack of general jurisdiction because the corporation's direction occurs at its headquarters in a third state.
Norton Bank brings suit in a district where it holds no branches. Its officers approve all major loans from a single office in another district. The defendant moves to transfer venue, arguing that the bank resides only where its principal place of business is located.
A plaintiff sues a Delaware corporation in her home state for injuries sustained locally. The company sells products nationwide and maintains a regional sales office in the forum. The court finds no general jurisdiction because the corporation's officers direct operations from its headquarters elsewhere.
Nia Nkosi sues a corporation incorporated in Delaware. The company recently moved its executive team to State A, where all strategic decisions are now made. The defendant removes the case to federal court in State A, claiming diversity based on the new location of corporate direction.
The test identifies the single state where high-level officers direct corporate activities as the principal place of business. A corporation is therefore a citizen of its state of incorporation and that nerve center state.
No. Extensive operations or sales do not render a corporation at home in a state unless the corporation's direction and control occur there or exceptional circumstances exist.
Venue lies in any district where the corporation is subject to personal jurisdiction. For a plaintiff corporation, venue is proper only in the district containing its principal place of business.
…exclusion of any statement by the accused, as well as the fruits thereof. Such a strict constitutional specific inserted at the nerve center of crime detection may well kill the patient.[^maj-3] Since there is at this time a paucity of information and an almost total lack of empirical knowledge on the practical operation of…