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TRANSPORTATION

Galette v. New Jersey Transit Corporation

Issues

Is the New Jersey Transit Corporation, as an arm of the State of New Jersey, entitled to interstate sovereign immunity, thereby barring out-of-state negligence claims against it?

This case asks the Supreme Court to determine whether the New Jersey Transit Corporation (“NJ Transit”) is an arm of the State of New Jersey entitled to interstate sovereign immunity. Cedric Galette initiated a negligence lawsuit against NJ Transit under Pennsylvania law. NJ Transit filed a motion to dismiss the suit based on interstate sovereign immunity, a common law doctrine under which a sovereign cannot be sued without its consent. Galette argues that although the Legislature of the State of New Jersey (“the State”) established the entity as an “instrumentality” of the State, NJ Transit’s structure, as well as the lack of direct state liability for its adverse judgements, demonstrate it is not an arm of the State for sovereign immunity purposes. NJ Transit counters that NJ Transit was created as an arm of New Jersey entitled to sovereign immunity, emphasizing statutory language calling it an instrumentality of the State, its governmental powers, essential public function, gubernatorial control, and dependence on state funding. The outcome of this case will impact federalism and state sovereignty as well as economic consequences for state-affiliated commercial entities.

Questions as Framed for the Court by the Parties

Whether the New Jersey Transit Corporation is an arm of the State of New Jersey for interstate sovereign immunity purposes.

On August 9, 2018, Cedric Galette was a passenger in a vehicle driven by Julie McCrey.  Galette v. NJ Transit and Julie E. McCrey at 2. While the vehicle was stopped on a street in Philadelphia, Pennsylvania, it was struck by a New Jersey Transit vehicle, causing physical injuries to Galette.

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