Supreme Court Rules NJ Transit Can Be Sued in Out-of-State Courts

Unanimous decision allows lawsuits against transit agency for injuries caused by its vehicles outside New Jersey.

Published on Mar. 4, 2026

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The Supreme Court ruled unanimously that New Jersey Transit, a state-owned transportation agency, can be sued in out-of-state courts for injuries caused by the system's vehicles. NJ Transit had argued it was entitled to 'sovereign immunity' as a government agency, but the court found that the agency was structured as a legally separate entity from the state, allowing it to be sued in courts serving non-residents or foreigners.

Why it matters

This ruling has significant implications for transit agencies across the country, potentially exposing them to a wider range of lawsuits and liability for incidents occurring outside their home states. It also raises questions about the extent of sovereign immunity protections for state-owned corporations and agencies that operate across state lines.

The details

The case concerned two traffic accidents involving NJ Transit buses in New York City and Philadelphia, both major hubs despite their location outside New Jersey. NJ Transit had argued it was entitled to sovereign immunity as a government agency, but the court found that the agency was structured as a legally separate entity from the state, with the governor only able to remove 8 of its 13 board members for cause.

  • The Supreme Court ruled on this case on March 4, 2026.

The players

New Jersey Transit

A state-owned transportation agency established by the New Jersey legislature in 1979 as a legally separate entity from the state government.

Sonia Sotomayor

The Supreme Court Justice who wrote the opinion in this case, pointing out that NJ Transit was structured as a legally separate entity from the state.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The ruling opens the door for more lawsuits against NJ Transit in courts outside of New Jersey, potentially leading to increased liability and costs for the agency.

The takeaway

This Supreme Court decision has broad implications for state-owned transit agencies, potentially exposing them to a wider range of lawsuits and liability for incidents occurring outside their home states. It highlights the complex legal status of these entities and the ongoing debate over the scope of sovereign immunity protections.