A seemingly simple question—which court should decide a lawsuit—that made it all the way to the U.S. Supreme Court has sent ripples through the corporate law world in general and employment law in particular. It’s an example of the kind of case HR professionals need to understand.
On Feb. 23, the Supreme Court’s unanimous decision in Hertz Corp. v. Friend (08-1107, 2010 U.S. 1897, 2010) made it more likely that a company sued in one state but based in another will be able to move the case to federal court.
For North Carolina employers, the case means that some lawsuits filed in state court might be more easily transferred to federal court.
Why cases go to federal court
When a corporation is a party to litigation, it has been surprisingly difficult to determine the corporation’s “citizenship.”
Removing a case from North Carolina state court to federal court requires either a “federal question” or “diversity jurisdiction” test...(register to read more)