United States: Sovereign Immunity: Public Sector Government

For hundreds of years, the world’s sovereign nations refused to allow any other foreign sovereign to be sued in their courts without the sovereign’s consent. The guiding principle was “absolute sovereign immunity,” an outgrowth of the ancient legal precept rex non potest peccare, understood to mean “the king can do no wrong.” The principle also was recognized as wise foreign policy because it extended "grace and comity" to other sovereigns.

This week, the U.S. Supreme Court issued a unanimous decision in Galette v. New Jersey Transit Corporation, 607 U.S. ___ (2026).

First Tuesday Update is our monthly take on current issues in commercial disputes, international arbitration, and judgment enforcement.