Court Opinion

ID: 9958706
Source: CourtListenerOpinion
Date Created: 2024-04-09 20:09:36.024644+00
Date Added: 2024-06-11T08:18:38.792814
License: Public Domain

Scrowcroft v George S. Hall, Inc.
               2024 NY Slip Op 31115(U)
                      April 3, 2024
           Supreme Court, New York County
        Docket Number: Index No. 155733/2023
                  Judge: Lisa S. Headley
Cases posted with a "30000" identifier, i.e., 2013 NY Slip
 Op 30001(U), are republished from various New York
 State and local government sources, including the New
  York State Unified Court System's eCourts Service.
 This opinion is uncorrected and not selected for official
                       publication.
                                                                                                 INDEX NO. 155733/2023
  NYSCEF DOC. NO. 48                                                                      RECEIVED NYSCEF: 04/03/2024

                            SUPREME COURT OF THE STATE OF NEW YORK
                                      NEW YORK COUNTY
          PRESENT:         HON. LISA S. HEADLEY                             PART                                28M
                                                                Justice
          --------------------X                                             INDEX NO.            155733/2023
            WILLIAM SCROWCROFT,
                                                                            MOTION DATE           11/16/2023
                                               Plaintiff,
                                                                            MOTION SEQ. NO.           001
                                       - V -

            GEORGES. HALL,' INC.,NEW JERSEY TRANSIT
            CORPORATION, NATIONAL RAILROAD PASSENGER                           DECISION + ORDER ON
            CORPORATION, METROPOLITAN TRANSPORTATION
                                                                                     MOTION
            AUTHORITY, LONG ISLAND RAILROAD,

                                               Defendant.
          --------------------X

            NATIONAL RAILROAD PASSENGER CORPORATION                                      Third-Party
                                                                                   Index No. 595884/2023
                                               Plaintiff,

                                        -against-

            MID-AMERICAN ELEVATOR CO., INC.

                                               Defendant.
            --------------------X

           The following e-filed documents, listed by NYSCEF document number (Motion 001) 2, 3, 4, 5, 6, 7, 22,
           24,26,27
           were read on this motion to/for                                    DISMISSAL

                  Before the Court is the motion filed by defendant, New Jersey Transit Corporation ("New
          Jersey Transit"), to dismiss the complaint, with prejudice, pursuant to CPLR §3211, because the
          plaintiff's claims are barred by the doctrine of State Sovereign Immunity, and this Court does not
          have subject matter jurisdiction over New Jersey Transit. The plaintiff filed opposition to the
          motion, and New Jersey Transit filed a reply.
                  Plaintiff commenced this action as a result of sustaining injuries while working as a
          mechanic for Mid-American Elevator Co. Inc, at Pennsylvania Station located at 2 Pennsylvania
          Plaza, New York, New York. Specifically, the plaintiff alleges that he was seriously injured while
          performing repair on an out of service elevator, which services the New Jersey Transit.
                  In support of the motion to dismiss, New Jersey Transit argues, inter alia, that the defendant
          New Jersey Transit is "an arm of the State of New Jersey," and is entitled to interstate sovereign
          immunity. Karns v. Shanahan, 879         3d 504, 519 (3d Cir. 2018); see also, Colt v. NJ Transit
          Corp., 206 A.D. 3d 126, 128 (1st Dep't 2022). Specifically, New Jersey Transit argues that as an
           155733/2023 SCROWCROFT, WILLIAM vs. GEORGES. HALL, INC. ET AL                          Page 1 of 6
           Motion No. 001

[* 1]                                                       1 of 6
                                                                                                  INDEX NO. 155733/2023
  NYSCEF DOC. NO. 48                                                                      RECEIVED NYSCEF: 04/03/2024

          arm of the State of New Jersey, it "cannot be sued by private parties like plaintiff in New York."
          See, Franchise Tax Bd. of California v. Hyatt, 587 US 230, 139 S Ct 1485, 1492 (2019). New
          Jersey Transit also argues that it did not consent to jurisdiction in New York. In addition, New
          Jersey Transit argues that it did not waive its immunity from this suit through its conduct in this
          litigation, and that it can raise sovereign immunity at any time.
                   Defendant New Jersey Transit submitted a memorandum of law arguing, in sum, that this
          Court is obligated to follow the United Supreme Court's decision in Franchise Tax Bd. of
          California v. Hyatt, 587 US 230, 139 S Ct 1485 (2019) ("Hyatt III"), which held that a State may
          be sued by a private citizen in a sister state only when it has consented to such suits. See also,
          Belfand v. Petosa, 196 A.D.3d 60 (1st Dep't 2021). New Jersey Transit also argues that this Court
          should ignore the Appellate Division's decision in Colt v. New Jersey Tr. Corp., which denied the
          defendant's motion to dismiss because New Jersey Transit had engaged in litigation conduct,
          including three years of discovery, and after the statute of limitations had expired in New Jersey.
          Colt v. New Jersey Tr. Corp., 206 A.D.3d 126 (1st Dep't 2022); citing, Fetahu v. New Jersey
          Transit Corp., 197 A.D .3d 1065 (1st Dep 't 2021 ). Here, New Jersey Transit argues that the instant
          motion should prevail because "it is seeking dismissal based on sovereign immunity at the earliest
          possible moment in this case." Therefore, the Court should grant this motion to dismiss plaintiff's
          claims against defendant New Jersey Transit based upon the doctrine of interstate immunity.
                   In opposition, the plaintiff argues, inter alia, that New Jersey Transit's motion lacks merit
          and disregards the binding judicial precedent in Colt v. New Jersey Tr. Corp., supra. Plaintiff
          argues that it is undisputed that the plaintiff could not have brought this action in the State of New
          Jersey because New Jersey law requires that a "suit against a municipal corporation be commenced
          in the county in which the cause of action arose." See, NJ Stat. §4: 3-2. Plaintiff argues New
          Jersey Transit "would be subject to a negligence suit in the courts of New Jersey under the state's
          Tort Claims Act should the incident or cause of action have arisen from events occurring in the
          State of New Jersey." Plaintiff argues that it would not have a judicial forum to bring this suit since
          "based on applicable statutory law, the ability to commence a negligence action against New Jersey
          Transit in the State of New Jersey is dependent on which county the incident occurred in the State
          of Jersey[.]"
                   Plaintiff argues that the Court should follow the Appellate Division's decision in Colt, that
          it was proper for the plaintiff to proceed in New York County against New Jersey Transit in a tort
          claim involving a New Jersey Transit bus crash in New York City. In the Colt decision, the Court
          held that there is no single factor controlling to determine whether to dismiss an action, and the
          Court considered "the burden on New York courts, the potential hardship on the defendant, the
          availability of an alternate forum in which the plaintiff may bring the suit, the residency of the
          parties, the forum in which the cause of action arose, and the extent to which the plaintiffs interests
          may otherwise be properly served by pursuing the claim in New York." See, Colt, 206 A.D.3d at
          132-33. Here, the plaintiff asserts that the New Jersey defendant would not be burdened or
          experience hardship in defending this action in New York since they conduct business in New
          York, where the accident occurred. Furthermore, the plaintiff contends that the same defendant

           155733/2023 SCROWCROFT, WILLIAM vs. GEORGES. HALL, INC. ET AL                          Page 2 of 6
           Motion No. 001

[* 2]                                                    2 of 6
                                                                                                    INDEX NO. 155733/2023
  NYSCEF DOC. NO. 48                                                                        RECEIVED NYSCEF: 04/03/2024

           made this motion after being denied by the Court on the very same grounds in the case in DiPierno
           v. New Jersey Tr. Corp. 170 N.Y.S. 3d 877 (July 7, 2023). Therefore, the plaintiff requests that the
           defendant's motion be denied in its entirety.
                    In reply, Defendant New Jersey Transit emphasizes that this Court is obligated to follow
           the decision in Hyatt III and to ignore the decision in Colt because "to the degree that any Appellate
           Division decision is based upon an interpretation of the Federal Constitution which conflicts with
           a United States Supreme Court ruling, this court must follow the holding of the United States
           Supreme Court and not the Appellate Division."
                    Defendant contends that the plaintiffs argument that he could not have brought this action
           in New Jersey because New Jersey Court Rule 4:3-2(a)(2) st~tes in pertinent part that venue shall
           be laid, " .. .in the county in which the cause of action arose ... is not absolute since the plaintiff
           also recognizes that such rule does not speak in mandatory terms because "any rule may be relaxed
           or dispensed with by the court in which the action is pending if adherence to it would result in an
           injustice." See, New Jersey Court Rule I: 1-2(a). Thus, defendant argues that the plaintiff needs
           only dismiss the present action and refile in New Jersey in order to avail himself of New Jersey
           Court Rule 1: l-2(a). Defendant further argues here, unlike in Colt, the two-year statute of
            limitations applicable to claims against public entities under the New Jersey Torts Claim Act has
           not yet lapsed since the subject incident only just occurred a year ago on March 7, 2023.
                    Lastly, the defendant argues that it does not "get a free pass" since it is immune from suit
           in New York by the doctrine of State Sovereign Immunity. However, the plaintiff is not left without
           a judicial forum, in that, the plaintiff can refile the lawsuit in New Jersey and "nothing is precluding
           him from doing so."
                                                         DISCUSSION
                    The issue before this Court is whether the doctrine of State Sovereign Immunity applies to
           the New Jersey defendant, which is a state-owned public transportation system, and whether the
           Court should apply the rule held in the U.S. Supreme Court decision, Hyatt Ill, or apply the rule
           set forth in the recent Appellate Division's decision affirming the New York Supreme Court's
           decision in Colt, to deny the defendant's motion to dismiss the action.
                    Sovereign immunity encompasses three distinct concepts: the immunity the states enjoy
           from suits in federal courts, the immunity they enjoy from suits in other states' courts ( or "interstate
           sovereign immunity"), and the immunity they enjoy in their own courts. See, Henry v. New Jersey
           Transit Carp., 39 N.Y.3d 361 (2023).
                    In the highest Court of the land, U.S. Supreme Court, held the Board did not waive its
           sovereign immunity, and that States retain their sovereign immunity from private suits brought in
           the courts of other States. Franchise Tax Bd of California v. Hyatt, 587 US 230, 139 S Ct 1485,
           203 L Ed 2d 768 (2019) ("Hyatt llf'). Hyatt Ill addresses the issue that States retain their sovereign
           immunity from private suits brought in the courts of other States, and overruled Nevada v. Hall's
           precedent, which held that the Constitution does not bar private suits against a State in the courts
           of another State. Id. Further, Hyatt ///holds that a State may be sued by a private citizen in a sister

            155733/2023 SCROWCROFT, WILLIAM vs. GEORGES. HALL, INC. ET AL                           Page 3 of6
            Motion No. 001

[* 3]                                                      3 of 6
                                                                                                INDEX NO. 155733/2023
  NYSCEF DOC. NO. 48                                                                    RECEIVED NYSCEF: 04/03/2024

          state only when it has consented to such suits. See also, Belfand v. Petosa, 196 A.D.3d 60 (1st
          Dep't 2021).
                  Here, this Court recognizes that the State of New Jersey enjoys immunity from suits in
          other states' courts because of interstate sovereign immunity. See, Henry v. New Jersey Transit
          Corp., 39 N.Y.3d 361 (2023). The United States Supreme Court also ruled in Hyatt III that a State
          who fails to assert its sovereign immunity defense at the trial level effectively waives their
          immunity defense and can be sued in a sister state's court. Id. Specifically, a defendant, that is an
          "arm of the state" of New Jersey waives its sovereign immunity defense by engaging in litigation
          conduct that amounted to an "inescapably [] clear declaration to have [New York] courts entertain
          this action." See, Fetahu v. New Jersey Transit Corp., 197 A.D.3d 1065 (1st Dep't 2021).
                  Therefore, based upon Hyatt III, this Court finds that since defendant New Jersey Transit
          did not waive its sovereign immunity defense at the trial level, and in fact, raised this defense
          within a month of this case being filed, it is therefore immune from suit before this New York
          court. Consequently, defendant New Jersey Transit "may not be sued by a private party in the
          courts of a different state without defendant New Jersey Transit's consent". Nizomov v. Jones, 220
          A.D.3d 879 (2d Dep't 2023). Additionally, this Court recognizes that defendant New Jersey
          Transit, by virtue of their extensive operations within the State of New York, has not consented to
          suit or waived their sovereign immunity because "[a] State's consent to suit must be
          'unequivocally expressed' in the text of the relevant statute and therefore 'may not be implied'."
          Id.
                 In opposition, the plaintiff argues that this Court should follow the Colt decision, and to
          deny the motion to dismiss because the plaintiff does not have any other jurisdiction to file this
          personal injury action.
                 In Colt, the Court affirmed Justice Silvera's decision to deny the defendant's motion to
          dismiss, and reasoned that:
                 "NJT would not be prejudiced, given that it waited three years to move to dismiss
                 on the ground of sovereign immunity. Nor would it be burdened in defending
                 this action in our courts, given that all the relevant witnesses and evidence are in
                 New York, where the accident took place, and it has participated in three years'
                 worth of discovery. Indeed, NJT has participated in discovery in many other
                 actions against it in New York (see e.g. Taylor, 199 A.D.3d 540, 158 N.Y.S.3d
                 58; Fetahu, 197 A.D.3d 1065, 154 N.Y.S.3d 50; Henry, 195 A.D.3d 444, 144
                 N.Y.S.3d 851; Belfand, 196 A.D.3d 60, 148 N.Y.S.3d 457). Further, the ability
                 to commence a negligence action against NJT in New Jersey state courts is
                 dependent solely on the fortuitousness of where the accident occurs. Plaintiffs
                 cannot seek redress for NJT's tortious conduct in New York state courts under
                 the doctrine of sovereign immunity and are precluded from suing in New Jersey
                 state courts merely because the cause of action did not arise in that state (see
                 Piper Aircraft Co. v. Reyno, 454 U.S. 235,254 n. 22, 102 S. Ct. 252, 70 L.Ed.2d
                 419 [1981] [" "]). Thus, our plaintiffs and other similarly situated plaintiffs are
                 without a judicial forum."

           155733/2023 SCROWCROFT, WILLIAM vs. GEORGES. HALL, INC. ET AL                        Page 4 of 6
           Motion No. 001

[* 4]                                                    4 of 6
                                                                                                 INDEX NO. 155733/2023
  NYSCEF DOC. NO. 48                                                                     RECEIVED NYSCEF: 04/03/2024

         Colt v. New Jersey Tr. Corp., 206 AD3d 126, 133 [1st Dept 2022], appeal dismissed~ 39 NY3d
          954 [2022].
                  In opposition, the plaintiff also cites to the case, Dipierno v. New Jersey Tr. Corp, which
          denied the defendant's similar application to dismiss that action.
                  In Dipierno v. New Jersey Tr. Corp., 75 Misc 3d 122l(A) (Sup Ct 2022), the Court
          determined that it was
                  "persuaded by the reasoning set forth in the recent decision and order of the
                   Appellate Division, First Department in Colt v. New Jersey Transit
                   Corporation, 2022 NY Slip Op 03343 (May 24, 2022), affirming the trial
                   court's denial of a motion to dismiss for lack of jurisdiction on sovereign
                   immunity grounds. In Colt, the First Department framed the issue as
                   whether it should dismiss a personal injury action on the ground of
                   sovereign immunity when the action cannot be commenced in the
                   sovereign's own courts because the injury arose outside of the sovereign's
                   borders and held, after consideration of certain factors, that dismissal of the
                   action against the NJT defendants would be inappropriate because it would
                   leave plaintiffs and similarly situated plaintiffs without a judicial forum.
                   Plaintiffs in this case are similarly situated to the plaintiffs in Colt. For the
                   reasons set forth in Colt, the motion to dismiss is denied.
          Dipierno v. New Jersey Tr. Corp., 75 Misc 3d 1221(A) (Sup Ct 2022).
                  "At common law, the doctrine of sovereign immunity generally shielded a state from suit
          absent its consent... [and] the Supreme Court of the United States found that State sovereign
          immunity is 'implicit in the constitutional design'." Alston v. State, 97 N. Y .2d 159, 161 (2001 ). A
         "state is presumptively immune unless it has 'unequivocally expressed' its consent to private suit."
         See, Pennhurst State Sch. & Hosp. v. Halderman, 465 U.S. 89, 99 (1984). Contrary to the
         plaintiffs contention, the New Jersey Transit defendant argues it did not consent to the suit, and
         their operation of business in New York does not constitute a waiver of their sovereign immunity.
                  Here, New Jersey Transit is a public entity subject to the New Jersey Tort Claims Act,
         which allows tort claims for personal injuries to be brought against New Jersey public entities in
         which the "public entity is liable for injury proximately caused by an act or omission of a public
         employee within the scope of his employment in the same manner and to the same extent as a
         private individual under like circumstances" N.JS.A. 59-2. "New Jersey permits victims of motor
         vehicle accidents to sue the State of New Jersey in New Jersey and has not raised jurisdictional
         objections to suits against it in New York in the past." Ceretta v. New Jersey Transit Corp., 267
         A.D.2d 128 (1st Dep't 1999). In addition, this Court considers the facts of this case to be
         distinguishable from the Colt case, supra. Primarily, the New Jersey defendant in this case filed
         this pre-answer motion to dismiss on the basis of sovereign immunity at the earliest possible
         moment in this case. To the contrary, in Colt, the New York Supreme Court considered, in denying
         the motion to dismiss, that the New Jersey Transit defendant would not be prejudiced since it had
         participated in three years of discovery, and that there was no alternative venue to try the case

[* 5]                                                     5 of 6
          155733/2023 SCROWCROFT, WILLIAM vs. GEORGES. HALL, INC. ET AL
                                                                                                 INDEX NO. 155733/2023
  NYSCEF DOC. NO. 48                                                                        RECEIVED NYSCEF: 04/03/2024

            because the statute oflimitations had already expired in New Jersey. Here, no discovery has been
            conducted. Further, the two-year statute of limitations applicable to claims against public entities
            under the New Jersey Torts Claim Act has not yet lapsed since the subject incident only just
            occurred a year ago on March 7, 2023. See, NJ Stat.Ann. § 2A: 14-2.
                     Here, this Court finds the arguments presented in the defendant's motion prevail, and this
            instant action is distinguishable from ihe Appellate Division's decision in Colt, therefore, the
            defendant New Jersey Transit as "an arm of the State of New Jersey," has not consented to the suit
            to be heard in New York, and thus, is entitled to interstate sovereign immunity.
                     Accordingly, it is hereby
                     ORDERED that the defendant, New Jersey Transit Corporation's motion to dismiss the
            complaint, with prejudice, pursuant to CPLR §3211, because the plaintiffs claims are barred by
            the doctrine of State Sovereign Immunity, and that this Court does not have subject matter
            jurisdiction over the New Jersey defendant is GRANTED; and it is further
                     ORDERED that the action is continued against the remaining defendants; and it is further
                     ORDERED that the caption be amended to reflect the dismissal and that all future papers
            filed with the court bear the amended caption; and it is further
                     ORDERED that any relief sought not expressly addressed herein has nonetheless been
            considered; and it is further
                     ORDERED that counsel for the moving party shall serve a copy of this order with notice
            of entry upon the Clerk of the Court (60 Centre Street, Room 141 B) and the Clerk of the General
            Clerk's Office (60 Centre Street, Room 119), who are directed to amend their records to reflect
            such change in the caption herein; and it is further
                     ORDERED that such service upon the C,lerk of the Court and the Clerk of the General
            Clerk's Office shall be made in accordance with the procedures set forth in the Protocol on
            Courthouse and County Clerk Procedures for Electronically Filed Cases; and it is further
                    ORDERED that within 30 days of entry, defendant New Jersey Transit shall serve a copy
            of this decision/order upon the plaintiff and remaining defendants with notice of entry.

                   This constitutes the Decision/Order of the Court.

                    4/3/2024
                     DATE
                                                                              LlLISA S. HEADLEY~
            CHECK ONE:                  CASE DISPOSED                   NON-FINAL DISPOSITION
                                        GRANTED     ,   □ DENIED        GRANTED IN PART          □ OTHER
            APPLICATION:                SETTLE ORDER                    SUBMIT ORDER
            CHECK IF APPROPRIATE:       INCLUDES TRANSFER/REASSIGN      FIDUCIARY APPOINTMENT   □ REFERENCE

            155733/2023 SCROWCROFT, WILLIAM vs. GEORGES. HALL, INC. ET AL                         Page 6 of 6
            Motion No. 001

        (

[* 6]                                                     6 of 6