Supreme Court rules NJ Transit can be sued over injuries in out-of-state courts
NY Post
The Supreme Court ruled unanimously Wednesday that New Jersey Transit can be sued outside the Garden State.
As a result, non-residents will be able to bring cases — and have a better chance of a favorable ruling — if they were hurt while using the transportation network, which stretches into New York and Pennsylvania.
NJ Transit had argued that it enjoyed liability protections that state agencies receive under “sovereign immunity” — a concept enshrined in the 11th Amendment that protects states from being dragged without their consent into courts serving non-residents or foreigners.
The transportation authority was established by the Trenton legislature in 1979 as a state-owned corporation, with the governor retaining veto power over key decisions such as appointing members to its board.
But as Justice Sonia Sotomayor pointed out in her opinion, lawmakers “structured NJ Transit as a legally separate entity” and “the state is not formally liable for any of NJ Transit’s debts or liabilities,” while the governor can only remove eight of the agency’s 13 board members for cause.
Attorneys for the plaintiffs, who were injured in traffic accidents involving NJ Transit buses in New York City and Philadelphia, argued that the agency’s structure was intended to shield it from the downsides of functioning as either a state agency or a corporation while reaping the benefits of both.
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