So, as everyone knows there are two pending appeals in NC in the ACC v. FSU suit. ONE of the many issues is about sovereign immunity. This is the principle that the state/agencies can't be sued unless they allow it. Most states do allow it at some level.
There are two related issues. One is about being sued AT ALL or for how much. In Florida, the state has waived sovereign immunity by statute for torts, but it's limited. A tort case can only get $200,000 per person no matter the actual losses. If the judgment is for more, the person has to seek a bill from the legislature to pay it (this is not common anymore). And the Florida Supreme Court has ruled that it's totally waived for contracts.
The other issue is WHERE they can be sued. This is the issue here. FSU is saying that Florida or its agencies can't be pulled into state court in NC.
Early on, I thought these were bad issues. The FSU arguments were very weak and based on statutes that did not even apply. However, they have pivoted and started to rely on a pretty recent US Supreme Court case called Franchise Tax Bd. of Cal. v. Hyatt. It's an important case because it was only decided in 2019 and before that the rule was the opposite. In other words, many of us who missed Hyatt being decided (few lawyers will ever deal with this issue) still thought the old law applied. Since this case has been cited, I think it is a LOT more likely that FSU gets the case in NC dismissed.
Today, 12 other state AGs said they want to file a brief in the NC Supreme Court in FSU's favor ON THIS SINGLE ISSUE. It's a good sign, but not really that meaningful legally. Don't fall for the "even the SEC states are in our favor" posts
There are two related issues. One is about being sued AT ALL or for how much. In Florida, the state has waived sovereign immunity by statute for torts, but it's limited. A tort case can only get $200,000 per person no matter the actual losses. If the judgment is for more, the person has to seek a bill from the legislature to pay it (this is not common anymore). And the Florida Supreme Court has ruled that it's totally waived for contracts.
The other issue is WHERE they can be sued. This is the issue here. FSU is saying that Florida or its agencies can't be pulled into state court in NC.
Early on, I thought these were bad issues. The FSU arguments were very weak and based on statutes that did not even apply. However, they have pivoted and started to rely on a pretty recent US Supreme Court case called Franchise Tax Bd. of Cal. v. Hyatt. It's an important case because it was only decided in 2019 and before that the rule was the opposite. In other words, many of us who missed Hyatt being decided (few lawyers will ever deal with this issue) still thought the old law applied. Since this case has been cited, I think it is a LOT more likely that FSU gets the case in NC dismissed.
Today, 12 other state AGs said they want to file a brief in the NC Supreme Court in FSU's favor ON THIS SINGLE ISSUE. It's a good sign, but not really that meaningful legally. Don't fall for the "even the SEC states are in our favor" posts
