The United States Supreme Court ruled 9-0 that the New Jersey Transit Corporation (NJ Transit) cannot claim sovereign immunity against personal injury lawsuits – even when they are filed in other states. The case represents a win for those injured by the negligence of NJ Transit or its employees. 

What is Sovereign Immunity?

“Sovereign immunity” is a legal doctrine holding that the federal and state governments cannot be sued unless they consent to it. The sovereign immunity doctrine protects governments and their employees from lawsuits for actions taken during official duties. However, a state can waive sovereign immunity via legislation – by passing a law that allows people to sue it in certain situations. 

At the founding of the United States, governments tended to be smaller and to handle business directly. As municipalities and populations grew, however, many governments have handed off once-public duties to organizations created for the purpose. This process continues to raise an important legal question: If the government creates a corporation to do a task, does that corporation also get sovereign immunity? 

To answer this question, the US Supreme Court weighs three factors: 

• Was the entity structured as a legally separate corporation from the state? Or is it a department or agency of the state? 
• Is the state formally liable for the entity’s decisions, actions, and responsibilities? 
• How much control does the state exercise over the entity?

These three questions played a key role in the Supreme Court’s recent decision. 

Galette v. New Jersey Transit Corporation

The Supreme Court considered the case of Galette v. New Jersey Transit Corporation. By the time this case reached the Court, it already had a busy history.

The case began as two separate cases, each involving a person hit by an NJ Transit bus. One of the injured people was hit in Pennsylvania; the other was hit in New Jersey. Each person sued NJ Transit for negligence. One case was brought in a Pennsylvania court, while the other case was brought in a New Jersey court. 

In both cases, NJ Transit asked the court to dismiss the case, arguing it had sovereign immunity. The Pennsylvania court agreed. It said NJ Transit was “an arm of the state” and thus received sovereign immunity. The New Jersey court, however, found the opposite: NJ Transit was not “an arm of the state” and thus could be sued. 

The US Supreme Court stepped in to resolve the question. In a unanimous decision, the Court held that NJ Transit does not qualify as “an arm of the state” entitled to sovereign immunity. In considering the three factors above, the Supreme Court held that:

• NJ Transit’s structure as a corporation – not a government agency or department – indicated it could sue and be sued, just like any private corporation. The New Jersey Tort Claims Act also excludes entities from the definition of “state” if they can sue or be sued.
• New Jersey doesn’t accept formal liability for the debts or judgments of NJ Transit. The state’s powers extend to the governor’s ability to appoint or remove members of the NJ Transit board – not to NJ Transit’s day to day operations.
• Even though NJ Transit receives public funding, the Court held that this wasn’t enough to win it sovereign immunity. NJ Transit’s legal structure meant more than its funding source. 

The case thus resolved the contradiction between the Pennsylvania and New Jersey holdings. It also has significant consequences for NJ Transit riders.

What This Case Means for NJ Transit Riders

The Supreme Court’s case makes it clear: riders of NJ Transit can seek compensation if NJ Transit’s negligence causes injuries. 

For example, an injured person can seek compensation from NJ Transit if they are struck by an NJ Transit vehicle, are injured getting on or off a bus, experience harm from broken seats or other broken bus parts or equipment, and in similar situations. As in any injury lawsuit, an injured NJ Transit rider may seek compensation for medical bills, lost wages, pain and suffering, and other losses stemming from an accident. Holding NJ Transit accountable for negligent or reckless behavior also helps to protect other commuters, road users, and community members from harm. 

Injury lawsuits can be complex. Cases against NJ Transit are no exception. If you’re injured on NJ Transit, speak to an experienced New Jersey personal injury lawyer. The team at Petrillo & Goldberg can help you protect your legal rights and win compensation.