Supreme Court ruling favors “nerve center” for multi-state businesses The Hertz Corporation received a favorable U.S. Supreme Court ruling in Hertz vs. Friend, a lawsuit which questioned how a court determines a national corporation’s principal place of business. Hertz argued successfully that a corporation’s headquarters, its "nerve center", should be considered its primary place of business. In a unanimous opinion, the Supreme Court agreed, adopting a sweeping nerve center test. The opinion overturns a lower court ruling that held Hertz to a California class action lawsuit in state court as opposed to federal court. The Chamber of Commerce, Business Roundtable, and American Trucking Associations supported Hertz’s appeal, advocating that a corporation’s headquarters is its principal place of business.               return