Galette v. New Jersey Transit Corp. · ¶18

The New York Court of Appeals held that NJ Transit is not an arm of New Jersey. 43 N. Y. 3d 463, 466, 264 N. E. 3d 774, 776 (2024). The court first observed that the Federal Courts of Appeals have analyzed whether an entity is an arm of the State using “an array of multifactor and multistep tests.” Id., at 472, 264 N. E. 3d, at 780.It then distilled from those cases a three-factor inquiry: “(1) how the State defines the entity and its functions, (2) the State's power to direct the entity's conduct, and (3) the effect on the State of a judgment against the entity.” Id., at 473, 264 N. E. 3d, at 781. Applying those factors, the court held that NJ Transit is not an arm of New Jersey and that Colt's suit could thus proceed.

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