damages caps

In Franchise Tax Board of California v. Hyatt the Supreme Court held 6-2 that the Constitution’s Full Faith and Credit Clause requires state courts to apply a damages cap, which applies to the state, to  foreign states and local governments sued in its court.

The State and Local Legal Center filed an amicus brief in this case asking the Court to reach this result. State and local governments are frequently sued out-of-state and will benefit if other states’ immunities apply to them.  

If A state is sued in B state, do the courts of B state have to extend to A state the same immunities that they would apply to B state? And…can state A even be sued in state B?   

While this may sound like a nonsensical hypothetical, these are the issues the Supreme Court has agreed to decide in Franchise Tax Board of California v. Hyatt. The State and Local Legal Center (SLLC) filed an amicus brief arguing that states must extend the same immunities that apply to them to foreign state and local governments sued in their state courts.