The Telephone Consumer Protection Act does not preclude federal courts from exercising diversity jurisdiction in private lawsuits brought by recipients of unsolicited faxes, the 3rd Circuit has ruled. The decision addressed three class actions filed in New Jersey federal court. In each case, the plaintiffs alleging that the defendants violated the Act by sending over 10,000 unsolicited fax advertisements to the plaintiffs' New York or New Jersey offices, and to thousands of others throughout the country.
Civil Procedure Diversity jurisdiction
On Feb. 23, the U.S. Supreme Court handed down its decision in Hertz Corp. v. Friend, et. al., ruling that a corporation's principal place of business for purposes of diversity jurisdiction is where its officers direct, control and coordinate the corporation's activities (i.e., the "nerve center"), rather than tests used in some federal circuit courts that focus on where a corporation's business activity is significantly large. The high court's unanimous decision is a favorable opinion for corporations, particularly corporations conducting business in multiple states, because they will be able to more easily determine when they can avoid state court jurisdiction, which is viewed as more friendly to plaintiffs.
Civil Practice Diversity Jurisdiction
(The following article was originally published in Wisconsin Law Journal, Milwaukee, WI, another Dolan Media publication.) The 7th U.S. Circuit Court of Appeals held on Jan. 31 that diversity jurisdiction was present in a tort claim, where the plaintiff initially sought a settlement of $160,000 and was willing to settle for $60,000.
A corporation is a citizen of the state where its "nerve center" is located for the purpose of establishing federal diversity jurisdiction, a unanimous U.S. Supreme Court has ruled in vacating a remand order. Hertz Corporation was sued in California state court by California residents who alleged that the company violated state wage and hour laws.
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