5. Like a natural person, a corporation is treated as an entity for purposes of determining citizenship;
Question:
5. Like a natural person, a corporation is treated as an entity for purposes of determining citizenship; unlike a natural person, a corporation may275have multiple states of citizenship. See 28 U.S.C. § 1332(c)(1). A corporation is a citizen “of every State and foreign state” in which it is incorporated, as well as the state in which it has its principal place of business. For many years, courts had discretion in determining the location of a corporation’s principal place of business. Three tests predominated: the “nerve-center” test, meaning the state in which corporate decisionmaking and overall control take place; the “corporate activities” or “operating assets” test, meaning the state in which the corporation has its production or service activities; and the “total activity” test, which considers all of the facts and circumstances. E.g., White v. Halstead Industries, Inc., 750 F.Supp. 395, 397 (E.D. Ark.
1990).
Step by Step Answer:
Civil Procedure Cases And Materials
ISBN: 9780314280169
11th Edition
Authors: Jack Friedenthal, Arthur Miller, John Sexton, Helen Hershkoff