A Landmark Victory for Victims: NJ Transit Can Be Sued Outside New Jersey

The cases that sparked the fight

The consolidated cases before the Court—Galette v. New Jersey Transit Corp. and NJ Transit v. Colt—arose from two separate accidents involving NJ Transit buses.

• Cedric Galette was a passenger in a vehicle struck by an NJ Transit bus in Philadelphia, Pennsylvania, in 2018. He filed a negligence lawsuit in Philadelphia County court
• Jeffrey Colt was hit by an NJ Transit bus in a Manhattan crosswalk, suffering what he described as "life-changing and permanent injuries." He sued in New York state court

NJ Transit moved to dismiss both lawsuits, arguing that as an "arm of the state" of New Jersey, it was entitled to sovereign immunity, a legal doctrine that generally protects states and their agencies from being sued without their consent.

The two states' highest courts reached opposite conclusions. Pennsylvania's Supreme Court agreed with NJ Transit, dismissing Galette's case. New York's Court of Appeals allowed Colt's lawsuit to proceed, creating a direct legal conflict that required the U.S. Supreme Court to step in.

The Supreme Court's Unanimous Ruling

On March 4, 2026, Justice Sonia Sotomayor delivered the opinion of a unanimous Court. The holding was clear: NJ Transit is not an "arm of the state" entitled to sovereign immunity.

The Court's reasoning focused on NJ Transit's corporate structure. New Jersey created NJ Transit as a legally separate entity, a corporation with all the hallmarks of separate legal personhood, including the power to sue and be sued in its own name. Crucially, New Jersey is not formally liable for any of NJ Transit's debts or legal judgments. The state deliberately insulated itself from financial responsibility.

Justice Sotomayor wrote that "if states expected corporate entities like NJ Transit to retain all the privileges of their sovereign protections, they must also assume their liabilities." In other words, the choice to create a legally independent entity comes with a cost: that entity does not share the state's immunity.

The Court rejected arguments from NJ Transit and 23 supporting states that a state's own characterization of an entity should control. Such a "labeling rule," the Court held, would lack principle and predictability.

What this ruling means for public transit users and accident victims

For the millions of people who ride NJ Transit trains, buses, and light rail across New Jersey, New York, and Pennsylvania—or who share the roads with those vehicles—this ruling has immediate and practical consequences.

• You can sue at home: If you are injured by an NJ Transit vehicle in your home state (or any state other than New Jersey), you are no longer forced to travel to New Jersey and navigate its courts to seek compensation. You can file your lawsuit where the accident occurred, with your own local attorneys, and under your own state's laws
• The playing field levels: The decision eliminates a significant procedural hurdle that previously favored NJ Transit in out-of-state litigation. Victims now have equal footing to pursue claims for medical expenses, lost wages, and pain and suffering
• Precedent for other agencies: While this ruling specifically addresses NJ Transit, its logic applies broadly to any state-created entity that operates across state lines and is structured as a separate corporation. Other public authorities—bridges, tunnels, port authorities, and transit agencies—may now face greater exposure to out-of-state lawsuits

Looking ahead

The Supreme Court's decision does not automatically entitle Galette or Colt to compensation; they must still prove their cases at trial. But they will now have that opportunity, in the courts they chose, with the legal representation they trust.

Michael Kimberly, Galette's attorney, summarized the case's essence: "If New Jersey wants the benefits of a separate legal entity for NJ Transit, it must also take the cost, namely that NJ Transit isn't entitled to sovereign immunity."

That is now the law of the land.

If you or a loved one has been injured in an accident involving a public transit vehicle or any government-adjacent entity, the independent attorneys we connect you with have the experience to navigate these complex claims. They will fight to ensure you have your day in court—wherever that court may be.