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Dec 23, 2025

Second Circuit Court of Appeals rules that the Port Authority of New York and New Jersey does not enjoy state sovereign immunity when sued in federal court

The Port Authority of New York and New Jersey [Port Authority] appealed the decision of a Federal District Court holding in favor of one of its former employees [Petitioner]. The Petitioner had sued his former employer, the Port Authority, seeking to be indemnified for certain legal expenses he had incurred. 

The federal district court had dismissed the Petitioner's complaint "for lack of subject matter jurisdiction" on the ground that Petitioner had failed to plead that the Port Authority had waived its "state sovereign immunity". 

The Circuit of Appeals reverse the District Court's ruling, noting that the United States Supreme Court has held that the Port Authority does not have the sovereign immunity “that a State enjoys”, citing Hess v. Port Auth. Trans-Hudson Corp., 513 U.S. 30, 33 (1994). 

Accordingly, explained the Circuit Court, Petitioner was not required to plead that the Port Authority had waived its immunity. 

The Circuit Court vacate the judgment of the District Court and remand the matter to the District Court for further proceedings.

Judge Carney concurred in the Circuit Court's judgment in a separate opinion.

Click HERE to access the decision of the Circuit Court of Appeals, Second Circuit.

Editor in Chief Harvey Randall served as Director of Personnel, SUNY Central Administration, Director of Research , Governor's Office of Employee Relations and Principal Attorney, Counsel's Office, New York State Department of Civil Service. Consistent with the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations, the material posted to this blog is presented with the understanding that neither the publisher nor NYPPL and, or, its staff and contributors are providing legal advice to the reader and in the event legal or other expert assistance is needed, the reader is urged to seek such advice from a knowledgeable professional.

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