Summary
This Memorandum and Order addresses a plaintiff's motion to remand a removed diversity action back to Massachusetts state court. Applying the Supreme Court's "nerve center" test, the court examined corporate filings and an officer's affidavit to determine the defendant's principal place of business. Finding that the company's executive leadership and core operations are centered in California, the court concluded that complete diversity exists and denied the motion for remand.
Topics
Practice areas
Questions Presented
- Whether Defendant is a citizen of Massachusetts for purposes of the forum‑defendant rule, requiring remand.
Holdings
- Defendant's principal place of business is in California, not Massachusetts; therefore the forum‑defendant rule does not apply and the motion to remand is denied.
Key quotations
“Accordingly, the Court finds that California “is the actual center of direction, control, and coordination” of the company.”
Factual background
Plaintiff sued Defendant for breach of contract and violations of Massachusetts law, alleging Defendant is a California corporation with its principal place of business in Irvine, California. Defendant later asserted that its principal place of business was Massachusetts based on corporate filings, but provided an affidavit showing that executive leadership, core operations, and the majority of employees are located in California.
Procedural history
Plaintiff filed suit in Massachusetts Superior Court; Defendant removed to federal court based on diversity; Plaintiff moved for remand arguing Defendant is a citizen of Massachusetts; Court denied motion.