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.