Civil Practice – Federal Jurisdiction – Diversity – Corporate – ‘Nerve Center’ – Amount in Controversy – Punitive Damages

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McClurkin v. Champion Laboratories, Inc. (Lawyers Weekly No. 002-048-11, 5 pp.) (Cameron McGowan Currie, J.) D.S.C.

Holding: Even though the defendant-corporation has a facility in South Carolina, since it was incorporated in Delaware and has its “nerve center” in Illinois, defendant is a citizen of Delaware and Illinois but not of South Carolina.

Plaintiff’s motion to remand to state court is denied.

A corporation’s principal place of business is where the corporation’s high-level officers direct, control, and coordinate the corporation’s activities.

Eight of defendant’s 14 officers are located in Illinois, two are in Indiana, and four are in Australia and New Zealand. The eight officers located in Illinois direct and control defendant’s activities from Illinois, and these officers are responsible for setting company policy and making significant business decisions. None of defendant’s officers are located in South Carolina.

Defendant’s nerve center is in Illinois; therefore, its principal place of business is in Illinois. Accordingly, defendant is a citizen of Delaware (its place of incorporation) and of Illinois. The parties are diverse because plaintiff is a citizen of South Carolina and defendant is not.

Even though plaintiff’s claims arise from the termination of a job at which she earned $13.20 per hour, her complaint seeks “actual and punitive damages.” Plaintiff’s claim for punitive damages makes it virtually impossible to say that the claim is for less than the jurisdictional amount of $75,000. Plaintiff did not file a post-removal stipulation to clarify that the damages were less than $75,000; therefore, the court has diversity jurisdiction because the parties are diverse and the amount in controversy exceeds the jurisdictional amount.

Motion denied.