Opinion ID: 522182
Heading Depth: 2
Heading Rank: 4

Heading: Striking the Balance.

Text: 43 Since 1890, the eleventh amendment has been construed to entitle states to immunity from suit in federal court. Hans v. Louisiana, 134 U.S. 1, 10 S.Ct. 504, 33 L.Ed. 842 (1890). The amendment is intended to provide a partial solution to the problems of federalism inherent in making one sovereign appear against its will in the courts of the other. Employees of the Department of Public Health and Welfare v. Missouri, 411 U.S. 279, 294, 93 S.Ct. 1614, 1622, 36 L.Ed.2d 251 (1973) (Marshall, J., concurring). The amendment's general purpose is to foster the states' autonomy. See Pennhurst State School and Hospital v. Halderman, 465 U.S. 89, 101 n. 11, 104 S.Ct. 900, 908 n. 11, 79 L.Ed.2d 67 (1984). This Court has attempted to effectuate the amendment's purpose by application of the factors listed in Urbano. In this case, the most important Urbano factor--whether the judgment would be paid by state funds--provides extremely strong indication that NJT is not the alter ego of New Jersey. The other factors--NJT's treatment under state law, and its degree of autonomy--provide only weak support for the conclusion that NJT is New Jersey's alter ego. 44 On balance, therefore, we conclude that NJT is not the alter ego of New Jersey, and thus that its subsidiary, NJTRO, is not entitled to eleventh amendment immunity. 6 The judgment of the district court will therefore be reversed and the consolidated cases will be remanded for pretrial proceedings and trial. 45