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Does Sovereign Immunity
Bar Private Suits Against States Before Federal Agencies?
Yes The Ports Authority of South Carolina does not allow ships to dock when their primary purpose is gambling. Maritime Services, owners of the "Tropic Sea," were miffed when denied a space, so they filed a claim with the Federal Maritime Commission. The company alleged that the Ports Authority violated the Shipping Act of 1984, a federal law prohibiting discrimination by carriers and terminal operators. The Supreme Court considered if the Ports Authority, a state agency, can be sued by private actors. It ruled that it can not: the same doctrine of sovereign immunity that protects states in judicial tribunals apply when a state is hauled before a regulatory agency. Thomas, writing for a 5-4 Court, notes neither history nor the text of the 11th Amendment provides guidance for settling the issue. His decision rests, instead, on structural arguments about federalism and the "dignity interests" of the states. "Simply put, if the Framers thought it an impermissible affront to a State’s dignity to be required to answer the complaints of private parties in federal courts, we cannot imagine that they would have found it acceptable to compel a State to do exactly the same thing before the administrative tribunal of an agency, such as the FMC." Decision here
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