Homestead Log Co. v. Square D Co., Civ. No. 81-1423.

Decision Date15 February 1983
Docket NumberCiv. No. 81-1423.
Citation555 F. Supp. 1056
PartiesHOMESTEAD LOG COMPANY, an Iowa corporation, Plaintiff, v. SQUARE D COMPANY, an Illinois corporation, Interstate Industries Electric Supply, Inc., an Idaho corporation, Dave Koeppen, individually and d/b/a Fruitland Electric, Western Tube and Conduit Corporation, a California corporation, and John Doe, Defendants.
CourtU.S. District Court — District of Idaho

Richard H. Greener of Clemons, Cosho & Humphrey, P.A., Boise, Idaho, for plaintiff.

Quane, Smith, Howard & Hull, James D. LaRue of Elam, Burke, Evans, Boyd & Koontz, Michael W. Moore, Imhoff & Lynch, Boise, Idaho, for defendants.

ORDER

RYAN, District Judge.

Defendant Dave Koeppen, d/b/a Fruitland Electric, moves this court for an order dismissing the above-entitled action on the ground that there is no diversity of citizenship between the moving party and Plaintiff Homestead Log Company.

It is a well-settled rule that unless there is complete diversity as to all plaintiffs and all defendants, subject matter jurisdiction will not lie. Indianapolis v. Chase National Bank, 314 U.S. 63, 62 S.Ct. 15, 86 L.Ed. 47 (1941). The argument presented by Defendant Koeppen is that plaintiff's principal place of business for purposes of 28 U.S.C. § 1332(c) (1976) is in Idaho. If plaintiff's principal place of business is Idaho, then complete diversity is lacking and this court must dismiss for lack of subject matter jurisdiction. See Eldridge v. Richfield Oil Corp., 364 F.2d 909 (9th Cir.1966), cert. denied, 385 U.S. 1020, 87 S.Ct. 725, 17 L.Ed.2d 557 (1967). There are two tests available to this court by which to determine the location of the principal place of business of Homestead Log Company. These are: the "nerve center" approach, and the "place of operations" approach.

The nerve center test, or "home office" test, as it is sometimes referred to, gives special importance to the location of the headquarters of the corporation in determining its principal place of business. Factors which are relevant in the nerve center test are:

Where the directors and stockholders meet; where the executives live, have their offices, and spend their time; where the administrative and financial offices are located and records kept; where the corporate income tax return is filed; and by the place which is designated in the charter or other corporate documents as the official headquarters of the company. footnote omitted

1 J. Moore, Moore's Federal Practice ¶ 0.773.—2, 717.66 (2d ed. 1982).

The place of operations analysis focuses on the location of the corporation's actual day-to-day business activities and operations. The controlling factors in the place of operations analysis are:

The location of the real property, equipment, inventory and any other tangible assets, the distribution of employees and payroll, the allocation of gross income, the
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3 cases
  • Snowbird Const. Co., Inc. v. US
    • United States
    • U.S. District Court — District of Idaho
    • July 10, 1987
    ...this testimony that Boise was the "nerve center" or principal place of operation for the housing project. See Homestead Log Co. v. Square D Co., 555 F.Supp. 1056 (D.Idaho 1983). 3 There can be no real question that the substantial activities giving rise to this dispute took place on the Ind......
  • Barrantes Cabalceta v. Standard Fruit Co.
    • United States
    • U.S. District Court — Southern District of Florida
    • July 21, 1987
    ...place of business of a corporation whose activities are basically bifurcated between two different states. Homestead Log Co. v. Square D Co., 555 F.Supp. 1056 (D.Idaho 1983). Thus, the principal place of business of a corporation with significant administrative authority and activity in one......
  • Nerco Delamar Co. v. North American Silver Co., Civ. No. 88-1328.
    • United States
    • U.S. District Court — District of Idaho
    • January 19, 1989
    ...Idaho, then complete diversity is lacking and this court must dismiss for lack of subject matter jurisdiction. Homestead Log Co. v. Square D Co., 555 F.Supp. 1056 (Idaho 1983). II. A corporation is, for purposes of Section 1332, a citizen of both its place of incorporation and its principal......

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