MEMORANDUM OPINION AND ORDER
HADEN, Chief Judge.
Pending is a motion to strike plaintiffs’ jury demand and for judgment on the pleadings as to plaintiffs’ demand for punitive damages, filed by Defendant American National Red Cross (“ARC”). Plaintiffs brought this state-law tort action against ARC in the Circuit Court of Kanawha County, West Virginia, alleging
inter alia
that Plaintiff Jason Doe, an infant, was infected with the Human Immunodeficiency Virus (“HIV”) by a transfusion during surgery of contaminated blood supplied by ARC. Defendants removed the action to this Court based on
American National Red Cross v. S.G.,
— U.S. -, 112 S.Ct. 2465, 120 L.Ed.2d 201 (1992), where the Supreme Court held the “sue and be sued” clause in ARC’s charter
confers federal jurisdiction over cases involving ARC.
Id.
at-, 112 S.Ct. at 2472.
ARC contends that although Congress permits it to “sue and be sued,” the corporation’s status as an “instrumentality of the United States” cloaks it in sovereign immunity and shields it from jury trials and punitive
damages.
A number of district courts have agreed with ARC’s analysis.
E.g., Berman v. American National Red Cross,
834 F.Supp. 286, 291-92 (N.D.Ind.1993);
Johnson v. Hosp. of Medical College of Pa.,
826 F.Supp. 942, 945 (E.D.Pa.1993);
Barton v. American Red Cross,
826 F.Supp. 412, 415 (M.D.Ala,1993).
This Court does not. For reasons that follow, the Court DENIES ARC’s motion.
I.
ARC’s contention it shares the shield of sovereign immunity is grounded largely on
Lehman v. Nakshian,
453 U.S. 156, 101 S.Ct. 2698, 69 L.Ed.2d 548 (1980). The
Lehman
Court restated the longstanding principle that the Seventh Amendment right to trial by jury does not apply in actions against the federal government, and held the United States, as sovereign, waives its immunity from jury trial only where such a waiver is “unequivocally expressed” as a term of the government’s consent to be sued.
Id.
at 160-61, 101 S.Ct. at 2701-02.
ARC employs the
Lehman
decision, as did the courts in
Berman, Johnson,
and
Barton,
as the foundation for its conclusion that the “sue and be sued” provision in ARC’s charter does not
completely
waive ARC’s sovereign immunity; ARC argues that because its “sue and be sued” clause contains no specific and unequivocal waiver of immunity from trial by jury and punitive damages, it is immune by virtue of residual immunity from all but “those things necessary to commence and maintain a legal proceeding to permit full compensation.”
Barton,
826 F.Supp. at 414-15.
This analysis of
Lehman
derives primarily from the decision in
Young v. United States Postal Service,
698 F.Supp. 1139 (S.D.N.Y. 1988). In
Young,
the court struck the jury demand of a former postal clerk in a wrongful discharge action against the postal service, holding based on
Lehman
that because the postal.service’s “sue and be sued” clause does not mention a jury trial, Congress did not “affirmatively and unambiguously” provide for such a right. The Second Circuit later denied plaintiff’s petition for mandamus on the jury trial issue “for substantially the reasons stated in Judge Carter’s comprehensive opinion____”
In re Young,
869 F.2d 158, 159 (2d Cir.1989).
The
Barton
and
Johnson
courts relied on
Young
en route to their conclusion that ARC’s “sue and be sued” provision left intact enough sovereign immunity to protect the corporation from jury trial.
Barton,
826 F.Supp. at 414-15;
Johnson,
826 F.Supp. at 944-45. The
Berman
court also referenced
Young,
as well as
Barton
and
Johnson. Berman,
834 F.Supp. at 290, 292. No other court has cited
Young
in a published opinion.
II.
The Court need not quarrel with ARC’s claimed status as a quasi-governmental entity.
The Supreme Court in
Dept. of Employ
ment v. United States,
385 U.S. 355, 359-60, 87 S.Ct. 464, 467-68, 17 L.Ed.2d 414 (1966), noted that “both the President and the Congress have recognized and acted in reliance upon the Red Cross’ status virtually as an arm of the Government.” In that decision, the Court concluded “[although there is no simple test for ascertaining whether an institution is so closely related to governmental activity to become a tax-immune instrumentality, the Red Cross is clearly such an instrumentality.”
Id.
at 358-59, 87 S.Ct. at 466-67. More recently, in
American National Red Cross v. S.G.,
— U.S.-, 112 S.Ct. 2465, 120 L.Ed.2d 201 (1992), a case similar factually to this one, the Court held the “sue and be sued” clause in ARC’s charter “confers original jurisdiction on federal courts over all cases to which the Red Cross is a party, with the consequence that the organization is thereby authorized to removal from state to federal court of any state-law action it is defending.”
Id.
at-, 112 S.Ct. at 2467.
The issue before the Court is narrow: is the right to jury trial and to assert punitive damages encompassed within the “sue and be sued” provision in ARC’s charter? The issues are of first impression in this District and Circuit.
The Supreme Court has interpreted “sue and be sued” clauses on numerous occasions. In
Keifer & Keifer v. Reconstruction Finance Corp.,
306 U.S. 381, 59 S.Ct. 516, 83 L.Ed. 784 (1939), the seminal case, the Court addressed whether a subsidiary corporation established by the Reconstruction Finance Corporation (“RFC”), itself a federally chartered corporation, was shielded from suit by sovereign immunity.
RFC’s congressional charter included a “sue and be sued” clause similar to that in ARC’s charter. The Court held that even though Congress did not include in legislation authorizing RFC to incorporate subsidiaries a provision permitting the subsidiaries to sue and be sued, Congress’ firm practice of allowing federally chartered corporations to sue and be sued “reveals a definite attitude on the part of Congress which should be given hospitable scope.”
Id.
at 391, 59 S.Ct. at 519.
Free access — add to your briefcase to read the full text and ask questions with AI
MEMORANDUM OPINION AND ORDER
HADEN, Chief Judge.
Pending is a motion to strike plaintiffs’ jury demand and for judgment on the pleadings as to plaintiffs’ demand for punitive damages, filed by Defendant American National Red Cross (“ARC”). Plaintiffs brought this state-law tort action against ARC in the Circuit Court of Kanawha County, West Virginia, alleging
inter alia
that Plaintiff Jason Doe, an infant, was infected with the Human Immunodeficiency Virus (“HIV”) by a transfusion during surgery of contaminated blood supplied by ARC. Defendants removed the action to this Court based on
American National Red Cross v. S.G.,
— U.S. -, 112 S.Ct. 2465, 120 L.Ed.2d 201 (1992), where the Supreme Court held the “sue and be sued” clause in ARC’s charter
confers federal jurisdiction over cases involving ARC.
Id.
at-, 112 S.Ct. at 2472.
ARC contends that although Congress permits it to “sue and be sued,” the corporation’s status as an “instrumentality of the United States” cloaks it in sovereign immunity and shields it from jury trials and punitive
damages.
A number of district courts have agreed with ARC’s analysis.
E.g., Berman v. American National Red Cross,
834 F.Supp. 286, 291-92 (N.D.Ind.1993);
Johnson v. Hosp. of Medical College of Pa.,
826 F.Supp. 942, 945 (E.D.Pa.1993);
Barton v. American Red Cross,
826 F.Supp. 412, 415 (M.D.Ala,1993).
This Court does not. For reasons that follow, the Court DENIES ARC’s motion.
I.
ARC’s contention it shares the shield of sovereign immunity is grounded largely on
Lehman v. Nakshian,
453 U.S. 156, 101 S.Ct. 2698, 69 L.Ed.2d 548 (1980). The
Lehman
Court restated the longstanding principle that the Seventh Amendment right to trial by jury does not apply in actions against the federal government, and held the United States, as sovereign, waives its immunity from jury trial only where such a waiver is “unequivocally expressed” as a term of the government’s consent to be sued.
Id.
at 160-61, 101 S.Ct. at 2701-02.
ARC employs the
Lehman
decision, as did the courts in
Berman, Johnson,
and
Barton,
as the foundation for its conclusion that the “sue and be sued” provision in ARC’s charter does not
completely
waive ARC’s sovereign immunity; ARC argues that because its “sue and be sued” clause contains no specific and unequivocal waiver of immunity from trial by jury and punitive damages, it is immune by virtue of residual immunity from all but “those things necessary to commence and maintain a legal proceeding to permit full compensation.”
Barton,
826 F.Supp. at 414-15.
This analysis of
Lehman
derives primarily from the decision in
Young v. United States Postal Service,
698 F.Supp. 1139 (S.D.N.Y. 1988). In
Young,
the court struck the jury demand of a former postal clerk in a wrongful discharge action against the postal service, holding based on
Lehman
that because the postal.service’s “sue and be sued” clause does not mention a jury trial, Congress did not “affirmatively and unambiguously” provide for such a right. The Second Circuit later denied plaintiff’s petition for mandamus on the jury trial issue “for substantially the reasons stated in Judge Carter’s comprehensive opinion____”
In re Young,
869 F.2d 158, 159 (2d Cir.1989).
The
Barton
and
Johnson
courts relied on
Young
en route to their conclusion that ARC’s “sue and be sued” provision left intact enough sovereign immunity to protect the corporation from jury trial.
Barton,
826 F.Supp. at 414-15;
Johnson,
826 F.Supp. at 944-45. The
Berman
court also referenced
Young,
as well as
Barton
and
Johnson. Berman,
834 F.Supp. at 290, 292. No other court has cited
Young
in a published opinion.
II.
The Court need not quarrel with ARC’s claimed status as a quasi-governmental entity.
The Supreme Court in
Dept. of Employ
ment v. United States,
385 U.S. 355, 359-60, 87 S.Ct. 464, 467-68, 17 L.Ed.2d 414 (1966), noted that “both the President and the Congress have recognized and acted in reliance upon the Red Cross’ status virtually as an arm of the Government.” In that decision, the Court concluded “[although there is no simple test for ascertaining whether an institution is so closely related to governmental activity to become a tax-immune instrumentality, the Red Cross is clearly such an instrumentality.”
Id.
at 358-59, 87 S.Ct. at 466-67. More recently, in
American National Red Cross v. S.G.,
— U.S.-, 112 S.Ct. 2465, 120 L.Ed.2d 201 (1992), a case similar factually to this one, the Court held the “sue and be sued” clause in ARC’s charter “confers original jurisdiction on federal courts over all cases to which the Red Cross is a party, with the consequence that the organization is thereby authorized to removal from state to federal court of any state-law action it is defending.”
Id.
at-, 112 S.Ct. at 2467.
The issue before the Court is narrow: is the right to jury trial and to assert punitive damages encompassed within the “sue and be sued” provision in ARC’s charter? The issues are of first impression in this District and Circuit.
The Supreme Court has interpreted “sue and be sued” clauses on numerous occasions. In
Keifer & Keifer v. Reconstruction Finance Corp.,
306 U.S. 381, 59 S.Ct. 516, 83 L.Ed. 784 (1939), the seminal case, the Court addressed whether a subsidiary corporation established by the Reconstruction Finance Corporation (“RFC”), itself a federally chartered corporation, was shielded from suit by sovereign immunity.
RFC’s congressional charter included a “sue and be sued” clause similar to that in ARC’s charter. The Court held that even though Congress did not include in legislation authorizing RFC to incorporate subsidiaries a provision permitting the subsidiaries to sue and be sued, Congress’ firm practice of allowing federally chartered corporations to sue and be sued “reveals a definite attitude on the part of Congress which should be given hospitable scope.”
Id.
at 391, 59 S.Ct. at 519. Noting that the doctrine of governmental immunity has been “appropriately confined,” the Court held that “the government does not become the conduit of its immunity in suits against its agents or instrumentalities merely because they do its work.”
Id.
at 388, 59 S.Ct. at 517.
A year later, in
FHA v. Burr,
309 U.S. 242, 60 S.Ct. 488, 84 L.Ed. 724 (1940), the Court held the Housing Administration subject to garnishment for moneys due to an employee. FHA had argued that as a United States agency, it was immune from garnishee proceedings.
Id.
at 244, 60 S.Ct. at 490. The
Burr
Court distinguished an earlier case where the Court disallowed creditors’ attachment of wages held by a federal disbursing officer,
Buchanan v. Alexander,
45 U.S. (4 How.) 19, 11 L.Ed. 857 (1846), explaining the
Buchanan
ruling “was derived from the principle that the United States cannot be sued without’its consent. There no consent whatsoever to ‘sue and be sued’ had been given. Here the situation is different.”
Burr,
309 U.S. at 244, 60 S.Ct. at 490.
The
Burr
Court clearly articulated the appropriate standard a court should employ when construing a “sue and be sued” clause:
As indicated in
[Keifer & Keifer
], we start from the premise that such waivers by Congress of governmental immunity in case of such federal instrumentalities should be liberally construed. This policy is in line with the current disfavor of the doctrine of governmental immunity from suit, as evidenced by the increasing tendency of Congress to waive the immunity
where federal governmental corporations are concerned. [Citing
Keifer & Keifer
]. Hence, when Congress establishes such an agency, authorizes it to engage in commercial and business transactions with the public, and permits it to “sue and be sued,” it cannot be lightly assumed that restrictions on that authority are to be implied. Rather if the general authority to “sue and be sued” is to be delimited by implied exceptions, it must be clearly shown that certain types of suits are not consistent with the statutory or constitutional scheme, [citation omitted] that an implied restriction of the general authority is necessary to avoid a grave interference with the performance of a governmental function, or that for other reasons it was plainly the purpose of Congress to use the “sue and be sued” clause in a narrow sense. In the absence of such a showing, it must be presumed that when Congress launched a governmental agency into the commercial world and endowed it with authority to “sue and be sued,” that agency is not less amenable to judicial process than a private enterprise under like circumstances would be.
Burr,
309 U.S. at 245, 60 S.Ct. at 490.
The
Burr
Court concluded Congress uses the words “sue and be sued” in their usual sense; “[c]learly the words “sue and be sued” in their
normal con
notation embrace all civil process incident to the commencement or continuance of legal proceedings.”
Id.
at 245, 60 S.Ct. at 490. .The Court held garnishment and attachment “commonly are part and parcel of the process, provided by statute, for the collection of debts” and are within the scope of FHA’s “sue and be sued” clause.
In
RFC v. Menihan Corp.,
312 U.S. 81, 61. S.Ct. 485, 85 L.Ed. 595 (1941), the Court concluded that litigation costs also fell within the scope of RFC’s “sue and be sued” clause. Citing
Keifer & Keifer
and
Burr,
the Court found no indication Congress intended to endow RFC with sovereign immunity.
We apply the principle that there is no presumption that the agent is clothed with sovereign immunity____ We apply the farther principle that the words “sue and be sued” normally include the natural and appropriate incidents of legal proceedings. The payment of costs by the unsuccessful litigant, awarded by the court in the proper exercise of the authority it possesses in similar cases, is manifestly such an incident.
Menihan,
312 U.S. at 85, 61 S.Ct. at 487.
The Court held RFC’s unqualified authority to sue and be sued placed it “upon an equal footing with private parties as to the usual incidents of suits in relation to the payment of costs and allowances.”
Id.
at 85-86, 61 S.Ct. at 487.
The Court relied on this trilogy of eases in
Franchise Tax Bd. of Cal. v. United States Postal Service,
467 U.S. 512, 104 S.Ct. 2549, 81 L.Ed.2d 446 (1984), where it allowed garnishment of wages of postal service employees who were delinquent in payment of state income taxes. The Court held that
Burr
required not only liberal construction of the postal service’s “sue and be sued” clause, but also a presumption that the postal service’s liability is the same as that of any other business.
Franchise Tax Bd.,
467 U.S. at 520, 104 S.Ct. at 2554.
In 1988 the Court decided
Loeffler v. Frank,
486 U.S. 549, 108 S.Ct. 1965, 100 L.Ed.2d 549 (1988).
Loeffler
involved a sex discrimination action brought under Title VII of the Civil Rights Act of 1964 against the United States Postmaster General in his official capacity by a former postal service employee. The
Loejfler
Court held the postal service’s “sue and be sued” clause waived its sovereign immunity, and rendered it subject to an award for prejudgment interest in a Title VII suit.
In its clearest statement to date on the extent of sovereign immunity abrogated by “sue and be sued” provisions, the Court recognized Congress “has waived the sovereign immunity of certain federal entities from the times of their inception by including in the enabling legislation provisions that they may sue and be sued.”
Loeffler,
486 U.S. at 554, 108 S.Ct. at 1969. The Court held that by bestowing on the postal service the ability to sue and be sued, Congress “has cast off the Service’s ‘cloak of sovereignty’ and given it
the ‘status of a private commercial enterprise.’ ”
Id.
at 556, 108 S.Ct. at 1970 (citing
Library of Congress v. Shaw,
478 U.S. 310, 317 n. 5, 106 S.Ct. 2957, 2963 n. 5, 92 L.Ed.2d 250 (1986)). In significantly clear language, the Court noted, “It follows that Congress is presumed to have waived
any otherwise existing immunity
of the Postal Service from interest awards.”
Id.
at 556, 108 S.Ct. at 1970 (emphasis added).
See also, Int’l Primate Protection League v. Tulane Educ. Fund,
500 U.S. 72, 87 n. 8, 111 S.Ct. 1700, 1709 n. 8, 114 L.Ed.2d 134 (1991) (citing
Burr
for the proposition that agencies authorized to sue and be sued “are presumed to have
fully
waived immunity unless, as to particular types of suits, there is clearly a contrary legislative intent.” (emphasis added)).
The Court of Appeals as well has addressed the broad waiver effected by “sue and be sued” clauses. In
White v. Bloomberg,
501 F.2d 1379, 1386 (4th Cir.1974), the court held the postal service’s “sue and be sued” provision authorizes an award of post-judgment interest against it. Noting that
Menihan
established the proposition that the words “sue and be sued” include the “natural and appropriate incidents of legal proceedings,” the
White
court wrote that “[bjecause post-judgment interest is a normal incident of damages ... the principle of
[Burr
and
Menihan
] suggests that a “sue and be sued” clause ordinarily should be construed to waive the agency’s immunity from interest awards.”
White,
501 F.2d at 1385-86.
In
Gen. Elec. Credit Corp. v. Smith,
565 F.2d 291, 292 (4th Cir.1977), the Fourth Circuit held the postal service’s “sue and be sued” clause waived its immunity from garnishment procedures. The court wrote that absent congressional qualification, “the phrase “sue and be sued” ... is to be given its normal connotation and construction as a waiver of constitutional immunity, embracing
all civil legal procedures.” Id.
(emphasis added).
III.
It is against this precedential background that this Court views ARC’S assertion it retains sufficient residual sovereign immunity to shield it from jury trial and punitive damages. ARC is correct there exists no Seventh Amendment right to trial by jury in actions against the United States.
Lehman,
453 U.S. at 160, 101 S.Ct. at 2701. But to extend
Lehman
so far as to find it dispositive of the issue in the present case would require this Court to ignore the Supreme Court’s longstanding jurisprudence regarding “sue and be sued” provisions, as developed in
Keifer & Keifer, Burr, Menihan,
and their progeny.
Lehman
was an age discrimination action against the United States Navy.
Lehman,
453 U.S. at 158, 101 S.Ct. at 2700. The
Lehman
plaintiff brought suit against the sovereign itself, not against a federally chartered corporation with a “sue and be sued” clause.
The
Lehman
case is readily distinguishable from this one on grounds identical to those employed by the
Burr
Court to distinguish
Buchanan v. Alexander (supra
p. 1154): “That ruling was derived from the principle that the United States cannot be sued without its consent. There no consent whatsoever to ‘sue and be sued’ had been given. Here the situation is different.”
Burr,
309 U.S. at 244, 60 S.Ct. at 490.
Courts which have held
Lehman
extends to prohibit jury trials in actions against ARC consistently have ignored or given cursory analysis only to the Supreme Court’s interpretation of “sue and be sued” clauses,
see, e.g., Barton,
826 F.Supp. at 414, and have applied the same immunity analysis applicable to suits against the federal government where a “sue and be sued” provision is absent. Supreme Court precedent indicates “sue and be sued” instrumentalities simply cannot be lumped with other governmental entities to analyze whether Congress intended they possess sovereign immunity; they are a separate species.
ARC contends that although Congress chartered it as a “sue and be sued” corporation, it nonetheless retains immunity from jury trial and punitive damages because Congress did not waive that immunity “unequivocally.”
Lehman, 453 U.S.
at 160-61, 101 S.Ct. at 2701-02. This argument fails. When Congress included in ARC’s charter a “sue and be sued” clause, it stripped the corporation of its “cloak of sovereignty,” and awarded it the “status of a private commercial enterprise.”
Loeffler,
486 U.S. at 556, 108 S.Ct. at 1970. The Court therefore presumes Congress waived “any otherwise existing immunity” ARC might have had in the absence of the “sue and be sued” provision.
Id.
Unless ARC demonstrates an exception operates to overcome this presumption, no residual immunity remains to protect ARC from the same legal procedures utilized in actions against corporations unaffiliated with the federal government.
Id.; White,
501 F.2d. 1385-86.
To rebut the presumption, ARC clearly must show complete waiver of its sovereign immunity is inconsistent with the statutory or constitutional scheme, that it would gravely interfere with the performance of a governmental function, or that, for other reasons, it was the plain purpose of Congress to use the “sue and be sued” clause in a narrow sense.
Burr,
309 U.S. at-245, 60 S.Ct. at 490.
The “exceptional freedom from legal responsibility” enjoyed by the government by virtue.of its sovereign immunity “has been appropriately confined.”
Keifer & Keifer,
306 U.S. at 388, 59 S.Ct. at 517. Congress included “sue and be sued” provisions substantially identical to ARC’s in the charters of most corporations organized under Title 36 of the United States Code.
To adopt ARC’s theory of residual sovereign immunity would require the Court to assume Congress
intended to share a substantial number of the benefits of its sovereign immunity with each of these instrumentalities. This cannot be the case. As the
Loeffler
Court recognized, Congress “has waived the sovereign immunity of certain federal entities from the times of their inception by including in the enabling legislation provisions that they may sue and be sued.”
Loeffler,
486 U.S. at 554, 108 S.Ct. at 1969. ARC has failed to demonstrate that waiver of its sovereign immunity is inconsistent with the statutory or constitutional scheme.
Neither has ARC clearly shown that subjecting it to trial by jury and punitive damages would gravely interfere with the performance of a governmental function, nor that Congress plainly intended to use the “sue and be sued” provision narrowly. While it is beyond cavil that ARC performs a wide variety of functions important to the federal government,
see Dep’t of Employment,
385 U.S. at 359, 87 S.Ct. at 467, a government instrumentality does not acquire the government’s immunity merely because it does government work.
Keifer & Keifer,
306 U.S. at 388, 59 S.Ct. at 517. ARC’s operations cannot be described as “exclusively” governmental; indeed, much of its work is not governmental in nature. The blood-banking services ARC performs, for example, are not mentioned in its congressional charter. 36 U.S.C. §§ 1-16.
ARC has made no clear showing to defeat the presumption that Congress intended to fully waive its sovereign immunity. The Court cannot on the mere assertions made here imply that Congress did not intend the full consequences of the “sue and be sued” provision it included in ARC’s charter.
Burr,
309 U.S. at 249, 60 S.Ct. at 492. There is no basis in law or policy for striking plaintiffs’ request for a jury trial and punitive damages.
The Court recognizes its decision runs counter to the current weight of authority on this matter.
See, e.g., Young,
698 F.Supp. at 1142-46;
In re Young,
869 F.2d 158, 159;
Jones-Hailey v. Tennessee Valley Authority,
660 F.Supp. 551, 552-53 (E.D.Tenn.1987);
Griffin v. United States Postal Service,
635 F.Supp. 190, 192 (N.D.Ga.1986).
But see, Algernon Blair Indus, v. Tennessee Valley Authority,
552 F.Supp. 972, 973-74 (N.D.Ala. 1982) (holding that because TVA has always been subject to direct lawsuit,
Lehman
did not extinguish plaintiffs right to a jury trial).
Most of the foregoing decisions were made without the guidance of the
Loeffler
Court. Although
Young
was decided after
Loeffler,
the
Young
court gave the case little attention.
Instead, the
Young
court grouped “sue and be sued” instrumentalities with other government entities, and subjected them to analysis under
Lehman.
On review, the Second Circuit recognized that “sue and be sued” provisions constitute broad waivers of immunity “and have subjected the federal government and its agencies to many types of liability and process, including prejudgment interest, liability for costs, and garnishment and attachment proceedings,” but concluded “the waiver of sovereign immunity does not, by itself, grant a right to trial by jury in an action against the federal government.”
In re Young,
869 F.2d at 159.
This Court does not read
Loeffler
and its predecessors so narrowly. The Supreme Court’s consistent analysis and interpretation of “sue and be sued” clauses instruct that when Congress authorized ARC to sue and be sued, it abrogated the corporation’s sovereign immunity, and gave it the “status of a private commercial enterprise.”
Loeffler,
486 U.S. at 556, 108 S.Ct. at 1970. As such, ARC is subject to jury trial and punitive
damages to the same extent as any private corporation.
For these reasons, the Court DENIES ARC’S motion to strike plaintiffs’ jury demand and for judgment on the pleadings as to plaintiffs’ demand for punitive damages.