Supreme Court Oral Arguments [24-1021] Galette v. New Jersey Transit Corp.
Jan 14, 2026
In this discussion, Mr. Zuckerman, counsel for New Jersey Transit, highlights the agency's creation and legal powers, arguing it qualifies as an arm of the State of New Jersey entitled to sovereign immunity. He contrasts this with Mr. Kimberly, representing the petitioner Cedric Galette, who posits that NJ Transit is a separate entity, lacking such immunity. They explore crucial legal precedents, the implications of corporate status, and the delicate balance between state control and corporate independence, leading to a compelling debate on liability and sovereignty.
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Structure Shows State Control
- New Jersey structured NJ Transit with hallmarks of state control, like gubernatorial appointments, veto power, rulemaking, and state ownership.
- Those features point to treating NJ Transit as an arm of New Jersey rather than a separate private corporation.
Look Past Corporate Labels
- When evaluating arm-of-state claims, focus on substance not labels; don't let the word "corporation" decide the issue.
- Examine control, accountability, and whether the state is effectively backing the entity.
Subsidies Can Defeat Formal Words
- Formal statutory reservations of non-liability don't always reflect practice when the state funds deficits annually.
- Consistent state subsidies can functionally make the state the backstop despite legislative language to the contrary.