Washington v. BP Products North America Inc.
4:23-cv-02781
S.D. Tex.Mar 5, 2024Background
- Plaintiff La Brandon Washington filed a motion to remand a case against BP Products North America Inc. in the Southern District of Texas.
- The core dispute is whether BP's principal place of business (its "nerve center") is in Texas or Illinois, which affects federal court jurisdiction and application of the forum-defendant rule under 28 U.S.C. § 1441(b)(2).
- Washington argued that BP's nerve center is in Texas, referencing BP’s Texas tax filings, corporate registration documents, and references to Houston as the parent company’s headquarters.
- BP argued and presented sworn affidavits showing that its top executives and actual decision-making functions are headquartered in Illinois.
- The court relied on the "nerve center" test articulated in Hertz Corp. v. Friend to determine the principal place of business.
- Judge Hanks ultimately rejected Washington's evidence and denied the motion to remand, finding the nerve center to be in Illinois.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Location of BP's principal place of business | BP’s nerve center is in Texas, due to tax and corporate filings in Houston | BP’s actual direction and control occurs in Illinois per executive affidavits | Nerve center is Illinois |
| Weight of corporate filings for jurisdiction | Texas Franchise Tax forms and corporate registration establish Texas as the nerve center | Corporate filings alone are not determinative under federal law | Filings not sufficient |
| Relevance of parent company’s location | Parent's Houston location imputes Texas citizenship to BP | BP is a separate entity; parent location is irrelevant | Parent location not dispositive |
| Applicability of forum-defendant rule | Rule prevents removal because BP is a Texas entity | Rule does not apply because BP’s nerve center is Illinois | Rule does not apply |
Key Cases Cited
- Hertz Corp. v. Friend, 559 U.S. 77 (2010) (establishes the "nerve center" test for determining a corporation's principal place of business for federal jurisdiction)
