Thursday, February 14, 2019
The Third Circuit ruled that the Pennsylvania Liquor Control Board is entitled to Eleventh Amendment immunity from a suit for monetary damages by an employee who alleged that the PLCB discriminated against him in violation of the Equal Protection Clause. The ruling ends the case.
The case, Patterson v. PLCB, arose when a PLCB employee accused the Board of discriminating against him because of his race. The employee sued for monetary damages; the PLCB moved to dismiss under Eleventh Amendment immunity; and the district court dismissed the case.
The Third Circuit affirmed. The court ruled that the PLCB, an "independent" state agency, is entitled to Eleventh Amendment immunity under the circuit's three-part balancing test. The court said first that "the state is not legally responsible for adverse judgments, the PLCB can satisfy a judgment using revenue obtained from liquor sales, and the PLCB is responsible for its own debts"--weighing against immunity. Second, the court said that the state treats the Board as an arm of the state--the Board is separately incorporated, it has its own power to sue and be sued, it's immune from state taxes, and state law considers the Board an arm of the state--weighing in favor of immunity. Finally, the court said that the Board's governing structure and oversight by the state weigh in favor of immunity. On balance, the court held that the Board gets immunity.