In a groundbreaking victory for a unique client, Partner Christopher R. Jones and Associate Hannah Engle successfully defended a bi-state agency that oversees and operates a 64-mile historic railroad on behalf of the States of Colorado and New Mexico.
The District of New Mexico’s ruling established the railroad’s immunity to suits under 42 U.S.C. § 1983 based on its entitlement to sovereign immunity enjoyed by the states under the Eleventh Amendment of the United States Constitution. The court’s ruling in this critical employment and civil rights case is the first time a court has analyzed the legal status of the railroad as a bi-state agency, created by interstate compact. In a further needle-threading, the court also found that the railroad commission, its wholly owned operating subsidiary, and its employees were not state actors subject to suit under 42 U.S.C. § 1983 for municipal liability. Finally, the ruling recognizes that neither the commission nor its subsidiary are automatically subject to state laws typically applicable to public agencies, such as New Mexico’s Whistleblower Protection Act, because of the complex issues of comity and federal supremacy implicated by the Compact Clause and Contract Clause of the United States Constitution.
In an area of law frequently recognized as void of constitutional law, the ruling’s conclusions not only relieve the railroad of the burden of litigation today but protect the railroad from future litigation that could threaten its existence as a treasured “museum on wheels” for Colorado and New Mexico.
The ruling dismissed several employment discrimination claims under Title VII of the Civil Rights Act of 1964 brought by four plaintiffs against the railroad, as well as multiple 42 U.S.C. § 1983 claims against four individual defendants. The decision emphasized the lack of sufficient factual support for the plaintiffs’ allegations and helped to protect the reputation of both the railroad and the individual defendants within the historical preservation and railroading communities.
The GRSM team navigated complex jurisdictional issues, demonstrating exceptional flexibility and strategic insight in litigating novel questions of constitutional and civil rights law. This victory underscores GRSM’s depth in employment litigation, which can include quasi-government entity defense. GRSM’s ability to adapt to evolving legal landscapes and craft innovative arguments continues to set the firm apart in high-stakes litigation.
Learn more about how GRSM’s Employment group can assist with employment matters, including novel questions of law or fact.