Northern Ins. Co. of New York v. Chatham County, Ga.
Issues
Whether a county is entitled to sovereign immunity from admiralty lawsuits.
Northern Insurance Company has sued Chatham County, Georgia, to recover for payments made on a boat that suffered damages when one of the county's drawbridges malfunctioned. Chatham claims that it is immune from liability due to Eleventh Amendment sovereign immunity. The issue before the Supreme Court is therefore whether counties and other municipalities are entitled to sovereign immunity from admiralty lawsuits. If the Court grants sovereign immunity, the quality of county-operated bridges may decline, insurance companies may raise their premiums, and the federal government may have to step in to impose extensive new regulations. If the Court holds that counties are not entitled to immunity, counties may have to dip into state funds to satisfy judgments rendered against it. This would lead to a depletion in resources, which may cause government-run programs like education and public welfare to suffer.
Questions as Framed for the Court by the Parties
Whether an entity that does not qualify as an "arm of the State" for Eleventh Amendment purposes can nonetheless assert sovereign immunity as a defense to an admiralty suit.
In October 2002, James Ludwig sailed his boat on the Wilmington River. See Brief for Petitioner at 3.
Additional Resources
Law About Admiralty Law, Sovereign Immunity