Opinion ID: 393752
Heading Depth: 1
Heading Rank: 1

Heading: immunity of the board of regents

Text: 6 Because the trial court and we, on appeal, would lack jurisdiction over the defendants if the claims are barred by Eleventh Amendment immunity, we must initially determine the validity of that defense. The eleventh amendment bars suits in federal courts by private citizens against a state. Where the state is in fact the real party in interest this bar cannot be circumvented by naming an individual state official or state agency as a nominal defendant. See Scheuer v. Rhodes, 416 U.S. 232, 237, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974). Because states are not citizens within the meaning of 28 U.S.C. 1332, a similar rule controls the determination of diversity jurisdiction when individual state officers or agencies are named in lieu of the state. 1 7 Although a number of factors may be considered, a crucial question in determining whether the suit should be regarded as one against the state is whether the named defendant has such independent status that a judgment against the defendant would not impact the state treasury. Edelman v. Jordan, 415 U.S. 651, 664, 94 S.Ct. 1347, 1356, 39 L.Ed.2d 662 (1974) (in concluding that a suit against the director of a state agency was in fact a suit against the state the court noted (t)hese funds will obviously not be paid out of the pocket of petitioner Edelman.); Highway Commission of Wyoming v. Utah Construction Co., 278 U.S. 194, 199, 49 S.Ct. 104, 105, 73 L.Ed. 262 (1929) (state highway commission is alter ego of the State with no funds or ability to respond in damages.) 8 Arizona has enacted a comprehensive scheme of risk management that includes provisions for payment of judgments obtained against the state and its departments, agencies, boards and commissions .... Ariz.Rev.Stat.Ann. § 41-621 A.3 (Supp.1980). Although the Board of Regents exercises some independent powers not ordinarily accorded a state agency, the Arizona Supreme Court has held that if a judgment of money damages is secured against the Board of Regents the state will have been successfully sued.... Arizona Board of Regents v. Arizona York Refrigeration Co., 115 Ariz. 338, 565 P.2d 518, 520 (1977). There is no evidence that the Board, acting in its corporate capacity, could satisfy a libel judgment in any way other than by turning to the state of Arizona. Consequently we conclude that the Board of Regents is protected by the eleventh amendment, and further, that the Board is not a citizen within the meaning of 28 U.S.C. § 1332. Our decision is in accord with other opinions that have considered whether a state university is an arm of the state within the protection of the eleventh amendment. 2 9 Ronwin contends that even if the Board of Regents is part of the state, Arizona has waived its eleventh amendment immunity from suit. Although in Stone v. Arizona Highway Commission, 93 Ariz. 384, 381 P.2d 107, 109-13 (1963), Arizona abolished sovereign immunity, consent to be sued in state court does not necessarily imply consent to be sued in federal court. Kennecott Copper Corp. v. Tax Commission, 327 U.S. 573, 577-80, 66 S.Ct. 745, 746-48, 90 L.Ed. 862 (1946). In Riggle v. State of California, 577 F.2d 579, 585-86 (9th Cir. 1978), we found that California's statute waiving sovereign immunity did not constitute an express waiver of eleventh amendment immunity. A state's waiver of such immunity is to be narrowly construed, Edelman v. Jordan, 415 U.S. at 673, 94 S.Ct. at 1360; Great Northern Insurance Co. v. Read, 322 U.S. 47, 54, 64 S.Ct. 873, 876, 88 L.Ed. 1121 (1944), and there is no indication in the Stone opinion that Arizona intended to consent to anything more than suit in its own courts. 3 10 The District Court did not err in dismissing Ronwin's claim against the Board.