Summary

William J. Brennan, Jr. Port Authority Trans-Hudson Corporation v…

The rule to be derived from our cases is that the Eleventh Amendment shields an entity from suit in federal court only when it is so closely tied to the State as to be the direct means by which the State acts, for instance a state agency. In contrast, when a State creates subdivisions and imbues them with a significant measure of autonomy, such as the ability to levy taxes, issue bonds, or own land in their own name, these subdivisions are too separate from the State to be considered its "arms."
Source: Wikisource

William J. Brennan, Jr. Port Authority Trans-Hudson Corporation v…

By its terms, then, the Eleventh Amendment would appear to be inapplicable. But this Court has created two very limited exceptions to a literal reading of the phrase "one of the United States," so that immunity applies: (1) where the entity being sued is so intricately intertwined with the State that it can best be understood as an "arm of the State"; and (2) where the State, though not a nominal party, is the real party in interest.
Source: Wikisource

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