Galette v. NJ Transit; Appeal of NJ Transit

Summary

The Supreme Court of Pennsylvania considers whether interstate sovereign immunity bars a Pennsylvania negligence action against NJ Transit, an instrumentality of New Jersey. Relying on Franchise Tax Board of California v. Hyatt, the Court concludes that interstate sovereign immunity extends to state-created instrumentalities and holds that NJ Transit is entitled to that protection. The Court reverses the Superior Court’s judgment, resulting in dismissal of the suit against NJ Transit.

Holdings

1. Interstate sovereign immunity extends to a state-created entity that operates as an arm or instrumentality of a sister state, and Pennsylvania courts must honor that immunity in private suits brought under Pennsylvania law.
2. NJ Transit is an arm or instrumentality of the State of New Jersey for purposes of interstate sovereign immunity.
3. New Jersey did not expressly waive interstate sovereign immunity by authorizing NJ Transit to sue and be sued or through the New Jersey Tort Claims Act.

Questions Presented

1. Whether interstate sovereign immunity recognized in Franchise Tax Board of California v. Hyatt bars a private Pennsylvania-law suit against an instrumentality of New Jersey in a Pennsylvania court.
2. Whether NJ Transit is an arm or instrumentality of the State of New Jersey entitled to interstate sovereign immunity.
3. Whether New Jersey expressly waived interstate sovereign immunity by authorizing NJ Transit to sue and be sued or through the New Jersey Tort Claims Act.

Disposition

reversed_and_remanded