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Focus (Forum & Focus)

Aug. 7, 2009

A Sense of Place

Where do United, Target, or other corporations with far-flung operations maintain their principal place of business? It depends where they're sued, write Stephen Smerek and Ashlea Raymond Pflug.

FOCUS COLUMN

By Stephen Smerek and Ashlea Raymond Pflug

The driving principle behind federal diversity jurisdiction is the longstanding notion that "the State tribunal might not be impartial between their own citizens and foreigners." Pease v. Peck, 59 U.S. 595 (1855). Applying this principle to the legal fiction of corporate entities, federal law provides that a corporation is a citizen of both the state where it is incorporated and the s...

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