Galette v. New Jersey Transit Corporation

Questions presented

SCOTUS records, cert granted 3 Jul 2025

Whether the New Jersey Transit Corporation is entitled to interstate sovereign immunity under the Federal Constitution, as held by the highest court of Pennsylvania in square conflict with the highest court of New York.

Opinion summary

Etalia.ai summary of the majority opinion

The dispute was whether New Jersey Transit Corporation is entitled to New Jersey’s sovereign immunity as an arm of the State. The Court held that it is not. The opinion explained that sovereign immunity extends only to the State itself and entities the State has structured as legally separate arms of the State. Looking to the State’s legal structure for NJ Transit, the Court emphasized that it was created as a body corporate and politic with traditional corporate powers, including the power to sue and be sued, make contracts, and acquire property. New Jersey law also makes the State not formally liable for NJ Transit’s debts or liabilities. Although the State exercises substantial control over NJ Transit through appointments, vetoes, and other powers, that control did not outweigh the strong evidence of legal separateness. The Court therefore concluded NJ Transit is not an arm of New Jersey and cannot claim New Jersey’s interstate sovereign immunity.