Plain-English summary
Court rules New Jersey Transit Corp. is not an arm of New Jersey and lacks interstate sovereign immunity
The Court held that the New Jersey Transit Corporation is not an "arm of the State" and therefore cannot claim interstate sovereign immunity. The unanimous opinion by Justice Sotomayor reversed the Pennsylvania high court and remanded the case.
Why this matters
This decision clarifies when instrumentalities created by a State can claim protection from lawsuits brought by other States or their citizens. It limits the reach of interstate sovereign immunity to entities that function as the State itself, affecting how passenger-transport agencies and similar state-created corporations can be sued across state lines.
Who may feel it
- State-created corporations and authorities (transit agencies, port authorities, etc.)
- People injured across state lines who sue state instrumentalities
- State governments that create or fund independent agencies
- Litigants and lower courts resolving immunity disputes
Key questions
- Is New Jersey Transit Corporation an "arm of the State" entitled to interstate sovereign immunity?
- What legal standard determines when a state-created entity shares the State’s constitutional immunity?