Hess v. Port Authority Trans-Hudson Corporation, 513 U.S. 30, 17 (1994)

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46

HESS v. PORT AUTHORITY TRANS-HUDSON CORPORATION

Opinion of the Court

[r]evenues from its operations were sufficient to meet its expenses. These annual appropriations were discontinued in 1934 because the revenues from the bridges, the Holland Tunnel and Inland Terminal had become sufficient."), cert. denied, 323 U. S. 792 (1945).

The States, as earlier observed, bear no legal liability for Port Authority debts; they are not responsible for the payment of judgments against the Port Authority or PATH. The Third Circuit, in Port Authority PBA, assumed that, "if the Authority is ever in need," the States would pay. 819 F. 2d, at 416. But nothing in the compact or the laws of either State supports that assumption. See supra, at 37-38. As the Second Circuit concisely stated:

"The Port Authority is explicitly barred from pledging the credit of either state or from borrowing money in any name but its own. Even the provision for the appropriation of moneys for administrative expenses up to $100,000 per year requires prior approval by the governor of each state and an actual appropriation before obligations for such expenses may be incurred. Moreover, the phrase 'salaries, office and other administrative expenses' clearly limits this essentially optional obligation of the two states to a very narrow category of expenses and thus also evidences an intent to insulate the states' treasuries from the vast bulk of the Port Authority's operating and capital expenses, including personal injury judgments." Feeney, 873 F. 2d, at 631.18

18 Concerning the Third Circuit's decision in Port Authority PBA, the Second Circuit said: "That decision . . . was based on the Third Circuit's understanding that, in the event that 'a judgment were entered against the Authority that was serious enough to deplete its resources, the Authority would be able to go to the state legislatures in order to recoup the amount needed for its operating expenses.' To the extent that this statement implies that the states must make such an appropriation, it appears to be in error." Feeney, 873 F. 2d, at 632 (quoting Port Authority PBA, 819 F. 2d, at 416).

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