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Washington v. BP Products North America Inc.
4:23-cv-02781
S.D. Tex.
Mar 5, 2024
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Background

  • 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)
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Case Details

Case Name: Washington v. BP Products North America Inc.
Court Name: District Court, S.D. Texas
Date Published: Mar 5, 2024
Docket Number: 4:23-cv-02781
Court Abbreviation: S.D. Tex.