In 1979, the
New Jersey Legislature created the New Jersey Transit Corporation (NJ Transit) as a "body corporate and politic with corporate succession" and constituted it as an "instrumentality of the State exercising public and essential governmental functions" but "independent of any supervision or control" by the
New Jersey Department of Transportation. New Jersey gave NJ Transit significant authority, including the power to make bylaws, sue and be sued, make contracts, acquire property, raise funds, own corporate entities, adopt regulations, and exercise
eminent domain powers. NJ Transit's organic statute provides that "[n]o debt or liability of the corporation shall... constitute a debt [or] liability of the State," and that "[a]ll expenses... shall be payable from funds available to the corporation." NJ Transit is governed by a board of directors (Board). The
New Jersey Governor may remove Board members and may veto Board actions; the Legislature may veto some eminent domain actions. NJ Transit is now the third largest provider of bus, rail, and light rail transit, operating within an area that includes New Jersey,
New York City, and
Philadelphia. In 2017, Jeffrey Colt was struck by an NJ Transit bus in
Midtown Manhattan; a year later, Cedric Galette was injured when an NJ Transit bus crashed into a car in which he was a passenger in Philadelphia. Both sued NJ Transit for
negligence in their respective home state courts. NJ Transit moved to dismiss both lawsuits, arguing that it is an arm of New Jersey entitled to sovereign immunity. The
highest court of New York held that NJ Transit is not an arm of New Jersey; the
Pennsylvania Supreme Court held the opposite, concluding NJ Transit is an arm of New Jersey. The Supreme Court consolidated the cases and granted
certiorari to resolve the conflict. ==Opinion of the court==